DHS Tenant Rent/Deposit Query


I have a tenant who is waiting to move in. Her local council have given me a few options in terms of which incentive to chose. I have chosen to take a cash incentive and deposit paid up front. the first month’s rent will not be paid until 4 weeks after moving in.

As I am using openrent Rent now scheme, it says that the deposit and first month’s rent is required from the tenant once their references have cleared and they sign the AST.
Is it possible to use openrents AST contract and RGI but chose that the first month’s rent be paid 4 weeks later?

Hi Mudi,

It sounds like you’re suggesting letting the tenant move in before the deposit and first month’s rent has been paid. We strongly advise against doing this.

Once the tenancy agreement has been signed, we will request payment of the deposit and rent, like you mentioned. We are happy to delay receiving this and still help set up the tenancy.

If you let the tenant move in before this is paid though, then:

  • It puts you (as the landlord) in a much riskier position
  • It invalidates your Rent Guarantee Insurance policy
  • It may cause issues with other products you hold, such as mortgage or insurance

I appreciate this won’t be the news you wanted to hear, but it is important we are upfront in explaining the risks that are presented by doing this.


Oh yeah, strongly advise against that. Whats the issue, the council are paying the rent and deposit so there is little payment risk to the landlord and a lot of people on benefits cant afford the upfront fee. So what is your solution to this which ensures people can afford to move in somewhere.