Hi, I am looking after a student property for my father that he has let for a number of years without issue. He’s always taken a deposit and always asked for one months rent in advance on signing of the contract (normally around Feb/March time) to cover the last months rent of the tenancy. We clearly state in the tenancy agreement that this is to be used for last months rent. Then just prior to moving in, or on first day of start of tenancy in September, we receive the first months rent in advance plus deposit.
I can see all agencies advertising in the are are asking for holding deposit only, which can is deducted off first months rent, to cover themselves during referencing period but that’s it until tenants move in. My question is, are there other student landlords that also ask for last months rent in advance on contract signing?
Also, he has never referenced students who have moved in or asked for guarantors and never taken a holding deposit. Moving forward i’m looking to do some more thorough checks and would like to use OpenRent credit referencing service but do you think it is worth paying to do a credit check on students who will most likely fail given their limited if any credit history or should we just pay for guarantor checks only?
I hope there are not other landlords that take the last months rent at the beginning of a tenancy in addition to a security deposit, as this is in breach of the Tenant Fees Act.
You can only take rent in advance to be used at the beginning of the tenancy term, and a max of 5 weeks security deposit.