HOW MUCH upfront?!!

[peasant]

Hi, letting a flat for the first time, from 1st of next month. Rent is £400pcm.

Rent payable monthly and one month in advance, I also want a £200 nominal deposit, refundable.

As far as I am concerned, this is £800 rent (June's & July's), plus the deposit = £1,000. Without the 2 month's rent you can be left at the end of a month with a tenant checking out and no money to cover you whilst you find another one?

That seems a really high amount to put down, but makes sense to me to cover landlord's back. Everyone says it sounds right. Please clarify?

Thanks

[suziebear]

Hi

It sounds like you are doing this without the aid of a letting firm, so here is what I did ..... YOU will need to amend details and check the figures etc...but this is the standard ...I know this mainly as I rented for many years myself.... GOOD LUCK

Also I noticed you haven't mention check-in fees or referencing fees you should look into this too. See one of my older posts about a referencing company.

The norm is the going rate for the property which I'm presuming in your case is £400.00, then the security deposit is generally 6 weeks rent again in this case will be £600.00. I also asked for £200.00 deposit to take the advert out of the paper to agree that they had secured my house. Then I confirmed the following in writing:-

Subject to contract & references

Dear ,

Re: Your property address

I have the pleasure in confirming the proposed tenancy of the above, subject to contract, on the following basis:

Landlords Name: Your name

Rent Agreed: £400pcm

Term: 12 Months (with a 6 month break clause)

Commencement Date:

Security Deposit: £600.00

Holding Deposit: £200.00 (received)

Check In: £85.00 including VAT - Have you done this

Referencing Fee: £30.00 (received) - Have you done this

Special Conditions: Landlord providing all white goods.

Please note: The completion monies must be paid in the form of a bank or building society draft or cash by appointment.

I advise you to contact Telephone Company at the earliest opportunity in order to avoid any delay in connection into your name.

In the meantime, should you have any further queries please do not hesitate to contact me.

Yours sincerely

Your Name

This one isn't displaying properly so send me an email and i can mail the docs if needs be......Then also the following break down for your new tenant... Seperate letter

Your address then their address and date it

Re: Your address

RENTAL DUE: £400.00

SECURITY DEPOSIT: £600.00

CHECK IN FEE: £85.00

REFERENCING FEE: £30.00

HOLDING DEPOSIT: £200.00

BALANCE DUE: £915.00

======== ========

TOTAL: £1115.00 £1115.00

-------------- --------------

BALANCE DUE CAN BE PAID BY BANKERS DRAFT OR TRANSFERRED DIRCETLY TO MY ACCOUNT ON OR BEFORE COMMENCEMENT OF THE TENANCY.

If you would like to transfer the funds directly in to my account, the details are as follows:

Made Payable to:

Account No.:

Sort Code:

Bank:

When transferring funds please allow a minimum of 3 days

Please sign the standing order form and hand that into your bank for processing. Rent can only be taken out of one account.

Seperate letter

RECEIPT PRELIMINARY OR HOLDING DEPOSIT

Tenants Name:

Re: Your address

I acknowledge receipt of the sum of £200.00 (Two Hundreds Pounds) being a preliminary NON-REFUNDABLE holding deposit in connection with your tenancy of the above property subject to contract.

For a term of: 12 Months (with a 6 month break clause)

Commencing on: 25th March 2005

At a rental of: £400.00 per calendar month

This deposit is received subject to the following:

1.If you successfully complete the proposed tenancy upon the terms outlined above, then this preliminary holding deposit receipt, of which is hereby acknowledged, being £200.00 will be credited to your account as part of the contractual security deposit and will be held with the Landlord for the duration of the tenancy and returned to you after the expiry of the tenancy in full or part less any deductions lawfully due under the agreement.

2.If you withdraw from the proposed tenancy for any reason whatsoever or fail to meet the required criteria to pass your references by our chosen referencing agency then this preliminary non-refundable holding deposit will be forfeited and applied to the Landlord.

3.If the landlord withdraws from the proposed tenancy for any reason whatsoever, and this reason will not necessarily be disclosed to you by the landlord, then this deposit will be refunded to you cheque at the earliest opportunity less any reference costs incurred on your behalf.

4.Receipt of the above-mentioned preliminary non-refundable holding deposit is hereby confirmed.

_________________________________________

Landlords Name

Tenants Declaration I have read and understand upon receipt prior to making any of the preliminary holding deposit and agree to be bound by its conditions. In particular, I acknowledge that my attention had been drawn to Clause 2 above and understand that if I withdraw from my proposed tenancy for any reason what so ever or fail to meet the required criteria to pass your references by your chosen referencing agency then this deposit now being paid will forfeited. I further understand that I will be required to pay any charges made for the provision of the references.

Signed Date

Tenants Signature

[peasant]

Much more of a reply than I had hoped for! Thank you very much. I have also sent a pm.

[Pjohnson]

Very helpful!

Can you help me out on my topic about letting to councils!!!?

Worth asking!

[martinharvey]

Suzie Bear, very helpful depsoit document, am I right in assuming that you take a security deposit of one and a half months rent, a months rent up front and you also keep the £200 holding deposit. Have I got this right or do you return the £200 once they are in and simply keep the security deposit until they leave a bit confused.