Initial Funds re Student HMO - Group of Sharers AST

Other

Guidance requested on experience of other landlords on the timing of the receipt of Initial Funds (Cleared Deposit & First Month's Rent).

The NRLA AST includes the following statement;
"This Agreement contains the terms and obligations of the Tenancy. It sets out the legally binding obligations that
will be placed upon you (the Tenant) and us (the Landlord) once the following has occurred:
1) The Agreement is dated above.
2) All Initial Funds referred to within this Agreement have been received by us or our Agent in cleared funds."

The statement clearly highlights that the agreement is not binding until both conditions are fulfilled (paperwork completed and monies paid).

As a RLA member (until merger) the RLA AST was silent on conditions for a binding agreement. Is there any experience of this statement fueling late withdrawal of tenants?

Grateful for any suggestions on best practice re timing of receipt of Deposit and Rent at start of tenancy, particularly interested on experience of shared house of student tenants. Bottom line is how early/late to require deposit and first month's rent given agreement is not binding until funds received and cleared.

Many thanks,
TD