Tenant Offering to Pay Rent in Advance

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    #16
    Originally posted by Grim View Post
    Using the logic of 3 months being paid before the tenant moves in, then paying monthly , does the monthly rent not effectively become rent for the third month hence, so not a deposit or am I oversimplifying ?
    That is how I see it, provided agreement is worded correctly:
    • Month 1: rent paid for months 1, 2 & 3;
    • Month 2: rent paid for month 4
    • Month 3: rent paid for month 5
    • Month 4: rent paid for month 6; tenant gives required 2 months' notice
    • Month 5: no rent paid
    • Month 6: no rent paid.
    However, I would not o for such a complex arrangement because of the possibility to gt things wrong, and what happens after LL gives notice:
    • If tenant keeps paying and then leaves at end of notice period, LL has money to hand back (essentially it has become a deposit)
    • If tenant stops paying rent and then stays beyond notice period, then how does LL take action against T for not conforming to agreement (to pay monthly 3 months in advance)?

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      #17
      I would not rent to them . . .

      Comment


        #18
        Originally posted by MdeB View Post

        That is how I see it, provided agreement is worded correctly:
        • Month 1: rent paid for months 1, 2 & 3;
        • Month 2: rent paid for month 4
        • Month 3: rent paid for month 5
        • Month 4: rent paid for month 6; tenant gives required 2 months' notice
        • Month 5: no rent paid
        • Month 6: no rent paid.
        The money taken in month 2 for the rent in month 4 is a deposit.

        "[A] “tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for the performance of any obligations of the tenant..."

        When you take several month's rent in advance, the rent isn't security, as what's being paid is "rent".
        The agreement says the rent is due and it's being paid.
        But that only works when the rent is taken for some months that immediately follow the payment, because that takes the element of "security" out.

        When the agreement says that rent due in month 4 is being taken two month's earlier, it's being held by the landlord in advance of it being due. And, until it's due, it's not due, so the money isn't owed.
        So the money handed over isn't rent until, at some point later, it becomes rent.
        Which means it's a deposit, a payment that is a security for the future obligation.

        You can imagine how many landlords have tried to come up with clever mechanisms to increase their security without having to protect deposits or to avoid paying a penalty when caught out.
        They invariably fail, because a) the definition of a tenancy deposit is quite well thought through and b) the intent of the legislation is quite clear (to protect against the possibility of a tenant's money from being lost to them), so any interpretation favours that view.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #19
          Originally posted by Jon66 View Post
          I would not rent to them . . .
          I am inclined to agree, beware of cannabis farms also....... it they are not what you think the upfront rent will pail in terms of the cost involved in the repair of your property after the police have raided it and the holes cut in the roof for ventilation have been fixed etc.

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            #20
            Not to mention the leccy bill!.

            OP specify in AST the dates for the 3 month advanced rent payment.

            Comment


              #21
              Originally posted by mariner View Post
              Not to mention the leccy bill!
              Never an issue in all the ones i have seen..... they by-pass the meter and abstract the electricity so its all free

              Comment


                #22
                Originally posted by jpkeates View Post
                When the agreement says that rent due in month 4 is being taken two month's earlier, it's being held by the landlord in advance of it being due. And, until it's due, it's not due, so the money isn't owed.
                So the money handed over isn't rent until, at some point later, it becomes rent.
                Which means it's a deposit, a payment that is a security for the future obligation.
                Not of agreement says rent is payable monthly 3 months in advance, surely

                Comment


                  #23
                  Originally posted by JK0 View Post
                  I would take six months rent up front, and no deposit, issue s21 at 4 month point, then switch to monthly at 6 month point.

                  If month 7 rent is not forthcoming, you can immediately apply for a possession order.
                  Taking a six month rent up fort will also change the notice period, the tenant is entitled to a notice period equivalent to the rental period.
                  https://england.shelter.org.uk/housi...otice_is_valid
                  Any advice I give is my opinion and experience, I am as you also learning.

                  Comment


                    #24
                    Originally posted by MdeB View Post
                    Not of agreement says rent is payable monthly 3 months in advance, surely
                    It depends on the wording.
                    If the first three months' rent is due in advance, it's paid when its due, so the landlord isn't holding it against a future liability, so there's no notion of a security.

                    But it does become an issue when the rent due in month 4 is paid in month 2.
                    The rent isn't due until month 4 and it is being held as security from when it's paid until month 4 (when it stops being a future liability and becomes due).

                    And eventually the tenant is going to pay for rent for a month that doesn't happen.
                    Which means the agreement will have to accomodate that somehow, without confirming that some of the money being handed over isn't rent at all.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #25
                      Originally posted by sunnyp View Post

                      Taking a six month rent up fort will also change the notice period, the tenant is entitled to a notice period equivalent to the rental period.
                      https://england.shelter.org.uk/housi...otice_is_valid
                      Depends what you put in the tenancy agreement.

                      Comment

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