Evening. i’m new to OpenRent, been using agents at vast expense with poor service. I’ve found a tenant i’m happy to proceed with and started the Rent Now process which asks for a holding deposit. The tenant has advised that the local council are going to pay the security deposit and 1st month’s advance rent and it will be made directly to me. The council have also confirmed this. Question i have is how can i still use the Tenancy creation service and the registering of the deposit etc if it comes directly to me and not through Open Rent??? Can anyone assist please? Thanks
You mean this is a council promoted tenant. Off their housing list maybe?
not really. It’s a department of the local council that assists people who need help moving, in this case the tenant needs to move from a top floor flat following a knee operation. They are only paying the deposit and advanced rent then the tenant is paying
In answer to your question, no the holding deposit, balance of the security deposit and first month rent must be paid to Openrent, if you are using their RentNow tenancy creation service.
Deposit, First month rent from Council goes to open rent. If you want Council can give you directly but then you have to protect it in 30 days and serve prescribed information and deposit certificate to Council as per regulations.Double check for documents to be served.
Hopefully @mod_harry can help but if tenant and council want to proceed they need to pay the deposit and 1st month rent to OR if that’s what you want done. If they don’t want to work with you on this find somebody who will, it’s their choice, and there are plenty of other tenants out there. But make clear that if they withdraw their application they lose the holding deposit.
I’d suggest serving all the usual docs (how to rent, epc, gas cert and eicr etc, tenancy scheme prescribed info etc) to both the council and to the tenant and getting receipt acknowledged in writing. You don’t want to face a RRO later or a fine (if you don’t do the deposit protection process properly the fine is 1-3 x the deposit amount)
Other thing to think about is that tenant has little motive to keep property in good order as any damage costs come from a deposit they haven’t provided. So make sure you do an inventory at start (get it signed) and schedule regular inspections in advance with tenant and do everything possible to help them know how to maintain your place.
And … if tenant has persuaded council they need the council to pay for the deposit and for the first month’s rent, how confident are you/what makes you think they can afford and will actually pay 2nd month’s rent, third month’s etc. Think about referencing and rent guarantee insurance and whether they can provide a guarantor. Check previous rent payments, LL refs, affordability just like any other potential tenant. If they can’t afford the deposit or 1st month’s rent themselves it’s not a good sign. Remember it’s not about how grateful they are or their story however deserving. It’s about your business and your future income from your property.
Just because they have council assistance at start is no reason to ignore need for referencing and a guarantor if needed. It’s you who loses out if they fall into arrears and council may tell them to wait for bailiffs to avoid costs of emergency housing. If they don’t pay 2nd month etc you are looking at at least 6months lost rent (which you’ll never get back as tenant evidently has few savings otherwise council wouldn’t pay deposit etc) plus eviction costs. Can you afford it?
Sorry if all v obvious
Good luck
Best
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To elaborate further for clarification the holding deposit must be paid by UK credit/debit card. There is no alternative option for this. The balance then of the security deposit and first month’s rent can be paid by bacs transfer, so that bit should be quite easy for the council. It’s the holding deposit where you have an issue. If the tenant is that keen, I’m sure they can stretch to a weeks worth of holding deposit to secure their accommodation.
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you do realise once the tenant is in, the council will give you no help if things go pear shaped ?
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David 240 paragraph 4 spot on The council will want their deposit back at the end ,even if you want it. You are either very brave or foolish, only time will tell. I would not do it.
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