My tenant is due to move in on Monday 12 October. The tenancy agreement has been signed, and he has paid the holding deposit, but the remaining first month’s rent and tenancy deposit are outstanding.
He started a well-paid job a couple of weeks ago and will receive his salary into his UK bank account. In the meantime, he is trying to transfer overseas savings into that account to pay OpenRent. He has reported transfer delays and one cancelled transaction, so payment before the planned move-in date is uncertain.
This may mean waiting until his first salary arrives, although I have not yet confirmed his payday or whether he could then pay the full amount outstanding.
Clause 2 of the agreement states that he has no right to occupy until the deposit and initial rent have been paid in full. OpenRent has also advised me not to hand over the keys until it confirms full payment.
I would like the tenancy to go ahead, but need to understand how to handle a delay properly. If we agree to wait until he can pay, should we formally change the tenancy start date through OpenRent? How would that affect when rent becomes payable, and what should we record in writing?
Has anyone dealt with a similar situation? The property is in London.
@Joanne51
Personally, I would follow Openrents advice and not hand over the keys until payment is made in full. The terms of the contract are clear. It is the tenants problem. They are already in the UK and have been working for 2 weeks. Possibly warn them so they can make arrangements to extend their stay where they are currently staying. Hopefully it all works out.
Best!
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@Joanne51
Follow OR advice, and don’t hand over keys till full payment received - or find someone more reliable. Suggest he withdraws his application and you can then keep holding deposit and you restart advertising and viewings. When or if he has the funds, you do a new holding deposit, contract and payment of balance a week before move in. Specify that in the contract.
Transfer delays and canceled transaction? Sounds like excuses, and hard to justify in the era of electronic banking. Suspicious. Oct 14 is a week away. If tenant has the funds in a foreign account, there should be no reason they can’t arrange transfer within a week. They managed to pay holding deposit somehow..
Have you contacted the employer independently (find their website, call their switchboard, ask for HR dep) to double check tenant works for them. Could be a scam. Openrent checks can fooled see the recent Panorama.
Good luck
Thank David240 and Christopher for weighing in.
I conducted a comprehensive reference check with Legal for Landlords, which included identity and employment checks and he passed. I checked nis right to rent and it was okay. His salary is over £100k and verified by L4L. What could be Working against him is his nationality and the economic sanctions imposed in his country, not him personally. I haven’t personally checked his employment but will do today. L4L requested for his contract amongst other things.
Good news @Christopher32 and @David240 The tenant has paid his rent and deposit in full.
Thanks again for your advice and comments.
He seems like an honest guy so I’m trusting all will be well.
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