Can a landlord legitimately ask for both a security deposit and last month's rent before I sign a lease?
Collecting a security deposit and first and last month's rent before lease signing is a legitimate and common practice in many markets, but only after an in-person viewing and with a formal, signed agreement.
Last reviewed: 10 June 2026
Explanation
In many rental markets — particularly in North America and parts of Europe — landlords routinely collect first month's rent, last month's rent, and a security deposit at lease signing. This is legal and protects the landlord against non-payment at the end of the tenancy. The practice is regulated in most jurisdictions with statutory limits on deposit amounts and rules about how they must be held.
The important distinctions are the stage at which money is requested and the formality of the transaction. Legitimate landlords collect these funds at lease signing — after you have viewed the property, had the lease reviewed, and both parties have agreed terms. The transaction is documented with a receipt and the deposit is held in a regulated account.
Problems arise when: money is requested before any lease is signed or viewing is offered, the landlord is a person you cannot verify in a face-to-face meeting, the amounts exceed statutory limits, or payment is required by untraceable methods. These are signals that the 'landlord' may not own the property or intend to honour the agreement.
Always insist on a written lease before any financial commitment, request a receipt, understand your local deposit protection rules, and verify the landlord's identity and ownership.
Common red flags
- Asked for deposits before a lease is signed or a viewing arranged
- Landlord cannot meet in person to sign the lease
- Total amount collected exceeds statutory limits for your jurisdiction
- Payment requested by gift card, cryptocurrency, or wire to a personal account
- Lease document is informal or lacks key legal clauses
- Landlord cannot verify ownership of the property
What to do now
- Arrange an in-person viewing and meeting before paying anything
- Request and review the lease before any financial commitment
- Verify the landlord's ownership through official land registry records
- Obtain a receipt for any deposit paid and confirm the deposit protection scheme
- Know your local laws regarding maximum deposit amounts and refund rights
- Report suspicious listings to the rental platform and consumer protection authority
Frequently asked questions
How do I verify a landlord's ownership of a property?
In the UK, check the Land Registry at gov.uk/search-property-information-land-registry. In the US, check your county assessor or recorder's office. In most countries, property ownership records are publicly accessible.
What is a deposit protection scheme?
Many countries require landlords to hold security deposits in government-backed or insured schemes that protect the tenant's funds. In England, for example, landlords must register deposits with an approved scheme within 30 days of receiving them.