Student contract for September?

Landlord Discussion
1

Hi,

I have received a holding deposit on our student property but for next September! How do I ensure their “commitment” without asking them to pay a month’s deposit and the 1st month’s rent now, more than 6 months in advance? Any advice please?

2

Thats what the holding deposit is for. Theyre unlikely to waste ghat mlney by continuing to look at other properties.

1 Like
3

| David122 Regular
February 24 |

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Thats what the holding deposit is for. Theyre unlikely to waste ghat mlney by continuing to look at other properties.

Thanks, but my understanding is that holding deposits can only be held for 15 days - not 6 months?

5

Thanks Maria, that’s very helpful info.

6

You can both agree a longer deadline as Maria27 says, so all you do is use a holding deposit agreement that specifies that the deposit will be retained until the date the tenancy is due to begin and you both sign it.

7

Thanks DAVID122, that’s a good idea, will do that!

8

I rent student properties too. I sign contracts within 2 weeks of holding deposit being paid and request for advance rent + security deposit even if it is >6 months before the start date of the contract. This is the norm and students are familiar with this process. Is there a reason why you don’t want to do that? I find that a one week holding deposit will not really going to get a tenant to commit fully so it’s best to proceed quickly with the contract signing and advance payments. That’s exactly what a rental agency would do too.

9

It may be the norm for you, but it is not good practice in my view. Once signed, you are both contractually bound and if its many months in advance, anything can happen in between. What if your existing tenants dont move out or there is a fire at the property or you suddenly need to sell it? You are also making tenants sign a contract when they havent even taken the exams that will guarantee their place at the college.

10

Many thanks for the feedback - am inclined to sign the contract with an August moving-in date, but holding off taking rent or a deposit until e.g. a month ahead of moving. Only therefore keeping the holding deposit. It is a lot for students to lose if they withdraw at the last moment.

11

Just as long as you understand that if for some reason you are unable to fulfill the contract, the tenant can sue you for their losses, which might include staying in a hotel for the whole term if they cannot find anywhere else to rent.

12

Why would I not be able to fulfil my obligations? I previously used an agency that took rent/the deposit 6 month ahead and I was uncomfortable with this.

13

Did you read my earlier pist with examples of why?

15

Thanks Maria and everyone. This is what I will do since the students are very keen to secure our property for the Autumn. I will keep the holding deposit against the 1st month’s rent until August and then accept the rest of the rent & deposit. Good advice to be had on this Forum!

16

It was not the nature of the student market in the area that I let in. We just took holding deposits from the students and reserved the property. Never had a student withdraw after paying this.