So sign the contract somewhere neutral, have them pay the first month’s rent and deposit and when that clears then hand over keys?
I hear what you’re saying about an applicant paying with no contractual protection. I guess I’m simply asking them to put the same amount of trust in me as I’m putting in them by handing over an asset worth hundreds of times what they stand to lose.
You are right that the landlord has nothing to fear if he hasn’t given possession.
However I have always collected the full deposit, and rent before signing the contract and have been doing for years without any difficulties.
I don’t use OpenRent service for that part of the process. They regularly take deposits without any reason, sometimes before an applicant has seen the property. It is not legal to take multiples and they are not acting ethnically in my opinion.
Yes, the agent arbitrarily collecting deposits and rents without asking is well out of order. Nevertheless, this is an entirely different issue to the one here.
I too have been renting out since 1987 and have never used agents except for once (which I bitterly regretted). However, still, I always offered contracts signature before any payments have been made. It’s like giving someone a weapon without any ammo. Whether they sign or not, if they don’t pay, nothing happens and I move on.
@Sarah40 Back to your original post, I agree it is odd but don’t think it is unusual. I find following the Rent Now process om Openrent, there is a flurry of activity once you put your property on the market, conduct viewing, credit referencing and contract signing with lots of interaction with prospective tenants. Once the contract is signed though, the only steps left are pay the deposit and first months rent and move in. If the move in date is a little while off, there seems little advantage to either party to pay the final payment immediately, it just sits in the bank account of Openrent. If the payment is outstanding, Openrent will continue to send reminders to both tenant and landlord but in my opinion that just causes angst for both. There is a function to switch reminders off until one week before move in date, so I find it better to switch off the reminders, agree a date nearer to move in to pay the remaining balance (at least one week before hand) and advise tenants if they have any queries in the meantime to contact you and you will do likewise. Hopefully you will find out on check in day that your tenants have been looking forward to moving in just as much as you have!
Thank you for taking the time to write that.
My nerves are slowly easing about the whole thing.
Interesting comments, in a one-to-one situation the contract and monies would be exchanged at the same time confirmation of payment electronically or via cash.
Nowadays with open rent and similar portals the digital signature and transparent of monies are not always the same. You can cover yourself by stating and if not all monies are paid by a certain date the contract becomes non-void. You could also Say your contract overrides anything on the portal. With careful wording.
I’ve just had a property completely trashed by a tenant for nine years they weren’t the most perfect but I got my rent and the place was reasonable in the last 12 months, multiple persons have moved in drug abuse drug House you name it, smash doors urination all over the flooring Filth you wouldn’t believe . I’ve had to trash all electrical stuff, washing machines cookers, flooting skirtings, doors Garage filled to the roof all crap left in the house furniture left in the house. Luckily,
With forethought , I got a signed agreement to dispose of everything so I didn’t have to keep it for 21 days.
The property is being renovated in preparation for re renting The rent is going to be high, landlords cannot sustain these huge costs and losses We are not banks or charities.
If I don’t get the rent, I want then it will be another property reduced from the PRS.
I’ve found Rent Now perfect to be honest. No tenant will pay monies across until the contract is signed. As a side note i always use Rent Guarantee Insurance because as soon as tenants sign I am covered for rent regardless of what they do. Yes it’s about 250 per year depending on size of property but worth it for peace of mind. In reality these tenants are now liable for rent legally. However, I do think you’ll be able to end tenancy as i assume you haven’t handed over any keys.
I always try and build a quick relationship with any tenants and especially meet them F2F and spend a bit of time talking with them. You get a feel for people.
If they just pull out or don’t follow through you can request the holding deposit they placed when property came off market through OpenRent. I have done this previously when tenants have let me down. At least it covers some costs while it’s been off the market
er… every single tenant I’ve ever had in 25+ years of letting has done just that so it probably not worth generalising. Like I said, it’s all about trust on both sides and typically, I’m standing in the room with them with the keys and the contract and a pen when they make the transfer.
FWIW, my RGI is the vetting I do on tenants prior to signing. I’ve never looked into actually paying for RGI so thanks for the estimate of £250 per year per property as I had no idea what it costs. Using that figure, I just calculated that I’ve saved myself over £25K over the years!
I know it might seem a lot but in reality it’s about 1 week rent a year so i think it’s worth it. Remember it also includes element of landlord contents, 50K legal cover, up to 12 months rent while you get the tenants out and public liability so i wouldn’t be without it even though i’m really careful with my choice of tenant.
Could you recommend an RGI you like?
All this talk about whether the money is handed over before or after the contract is signed is missing the real issue which is the tenant not replying to phone calls or messages . Im assuming we are talking about a reasonable time like not replied for say 48 hrs.
Thats a big red flag to me as ive found when a tenant goes ‘off radar’ it always ends badly .
i use Direct Line mainly but they are quite dear. I’ve also used Simply Business who search whole market for cheapest (AXA etc). The rent guarantee part is always done through DAS so doesn’t matter really but the difference comes in whether you want some contents, malicious damage and other bolt ons so worth comparing. These insurances are tax deductible
But what stops them moving in by getting a locksmith and presenting contract as a proof! If they aim to be unlawful it is difficult to stop them. Technically they have contract in place so not paying will be a different matter.
A locksmith would find it weird if a “tenant” presented a contract for the date occupancy was supposed to start.
Let’s set the scene: Tenant turns up to the property with a van late night. Calls emergency locksmith. And states lost the key and cannot reach anyone. Locksmith will be less worried especially if the property is empty as nothing to steal and contract in place. Sorry I am being a bit cynical but I personally feel my hands being tied more and more so always running worst case scenarios nowadays. I hope everyone gets good tenants and landlords.
Your suggestion that the tenant break into the property is certainly possible and unless the landlord has evidence that he has attempted to withdraw the contract before the tenancy began, he would not be able to do anything about it, other than perhaps sue for a broken lock.
Because? That’s not how things are done. A contract is signed first, specifying when and how payments need to be done or it’s not valid. Who in their right mind would pay deposit and one month’s rent to a random guy without a contract?
All my tenants apparently 
Per . My last two tenants paid first then signed . Who in their right mind (landlord) would sign the contract before getting a deposit and one months rent?