Tenant wants to pay first month rent to Landlord

Landlord Discussion Legal
1

Tenant does not want to pay initial rent and deposit to Openrent at the time of signing the contract. They are not quite confident about everything being online. They want to be able to speak to someone. They are suggesting that they will transfer the money in front of me and pick up the key at the same time at the property. Can they transfer the money directly to my account?

I am supposed to receive Holding deposit after 10 working days, but I never received. This makes me a bit nervous too.

Is there any solution for this situation?

Thanks
Bala

2

Many landlords, myself included, prefer this. Tenant simply transfers the deposit and rent to my account on or before check in date.

There is no requirement to use openrent for this. I use simply as a marketing tool.

It gives landlords far more control and allows them to sort issues better.

3

Thanks Mark. I guess you don’t use Tenancy creation service then? You issue your own AST?
Bala

4

Yes that’s correct, I use an AST provided from elsewhere,

5

Some tenants are rightly nervous, especially if the landlord doesnt offer proof of ownership before askjng for money. Ive had a couple of tenants over the years that have paid the first rent and deposit in cash on the day. A bank transfer at that point is not advised as it can in theory take 24 hours before you receive it.

Whats the story with the holding deposit though?

6

Yes, my tenants are nervous. Openrent advises against receiving money directly from the tenants - not sure why though?

One tenant passed the reference checks but he changed mind as his mother fell ill. Openrent informed me that I will receive the holding deposit. After two weeks, I have no idea what happened to the deposit. I did not get it. Not sure if it was returned to the tenant either. No communication whatsoever from Openrent.

7

It cuts OR out of the loop, loss of revenue

8

My point exactly. I need to be in charge. Of course rent now has its place though.

9

We had T transferring money in front of us and picking the keys. But only because it arrived to our bank almost immediately. What if it takes a couple of hours? I wouldn’t give the keys before then.
We had another T transferring money on the day, also with no problem. Majority of our T were Eastern or Central European, who preferred paying in cash in exchange for the keys on the day.

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10

I would be so wary about doing this. I’ve heard so many stories about people buying things and ‘transferring the cash’ in front of the person, but then cancelling the transaction after.
How are they planning to pay going forward?
Personally I’d avoid because it sounds dodgy!

1 Like
11

that is why i say cash is king I do not do internet banking at all so can only check if I have received money when I get my statement ,so for me cash is it.Works for me. After initial payments then S O or DD will be ok ( following all my checks)

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12

You cannot cancel a bacs/faster payment once it shows in recipients account.

The issue is potential for delay on the day, so cash would work best if tenant was concerned.

It’s kind of insignificant for landlord really, if the tenant had ideas of not paying they could just pay the first month and then nothing thereafter.

Personally tenants have always paid days in advance.

1 Like