The tenancy agreement has to be signed before the first month’s rent and deposit are paid otherwise taking payment prior to signing the agreement is classed as a deposit.
What happens if after signing the agreement the tenant doesn’t pay the rent and deposit? Am I able to refuse tenancy and offer the property to someone else?
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We would have no objection to refusing to hand over keys until you’ve received first rent and deposit. A tenant shouldn’t be let in before payment.
Can’t recall the exact wording, but our tenancy has a clause about this and after a time and/or events, the tenancy can be made not to commence. We’re not entirely sure how enforceable such a clause would be if challenged but up to now it’s not been a problem.
As long as keys are not handed over, such an event is exceptionally rare.