Rental payment on 1st of each month

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    Rental payment on 1st of each month

    Hi.
    what is the benefit to letting agency acting on behalf of landlord to set the fixed date of rental payment to 1st of each month even you moved at different date. I have seen very weired letting terms & condition by one letting agency as below:

    Rental payments are calculated on a calendar monthly basis and are payable on the 1st day of each month.
    The rent for the property is to be paid in advance by standing order on the 1st of each month, if you move into a property after the 15th of the month, you will have to pay any apportionment of rent for that month before you move into the property.

    #2
    Sounds like the letting agency are just making their life easier by having all their payments come in at the same time, then they only have to all the bank checks on one day instead of spreading out out over the month.

    Comment


      #3
      But lets suppose your tenancy agreement is starting on 20th then how will it work? Means you have to pay the rent from (20th -1st) + (1st-31st) equivalent to around 1.5 months rent in advance.

      Comment


        #4
        IMO you are in error.
        T pays rent for 20th - last day of month, then subsequent month, in cleared funds, by1st day of following month.1
        No legit 1.5 rent inadvance.
        Rent is normally payable in advance

        Comment


          #5
          Originally posted by Policy reader View Post
          Hi.
          what is the benefit to letting agency acting on behalf of landlord to set the fixed date of rental payment to 1st of each month even you moved at different date. I have seen very weired letting terms & condition by one letting agency as below:
          Benefit is that most people get their salary at end of month so less chance of failed payments.

          Comment


            #6
            Lets suppose your tenancy agreement started on 20th January 2020 - 19th January 2021 with the condition to pay the rent on 1st of each month. In the last month of tenancy agreement you paid the rent on 1st January 2021 but leaving when contract ending on 19th January 2021 then in that case whether the landlord will refund the overpaid rent from 19th January - 31st January because although the rental payment has set date of 1st of each month but your tenancy agreement is expiring earlier.

            Comment


              #7
              I bet there's nothing in the agreement about paying back any rent.
              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


                #8
                Originally posted by jpkeates View Post
                I bet there's nothing in the agreement about paying back any rent.
                So it means by setting the rental payment day on 1st of each month is actually benefiting to landlord because a lot of tenancies can be started on any day of the month instead exactly on 1st.

                Comment


                  #9
                  Originally posted by Policy reader View Post
                  So it means by setting the rental payment day on 1st of each month is actually benefiting to landlord because a lot of tenancies can be started on any day of the month instead exactly on 1st.
                  It's a terrible idea that doesn't benefit anyone, including landlords.
                  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


                    #10
                    Originally posted by jpkeates View Post
                    It's a terrible idea that doesn't benefit anyone, including landlords.
                    How will it not benefit to landlord where tenancy agreement is expiring before 1st of each month and he has already been paid with surplus rent? Doesn't is it a better idea to start tenancy very close to 1st?

                    Comment


                      #11
                      Originally posted by Policy reader View Post
                      How will it not benefit to landlord where tenancy agreement is expiring before 1st of each month and he has already been paid with surplus rent? Doesn't is it a better idea to start tenancy very close to 1st?
                      Because when the rental periods and the payment periods are out of synch it makes the end of the tenancy very messy.

                      Adjusting the rent with a part monthly payment is messy and unnecessary.

                      The rent due date doesn't have to be the date that the rent is paid.
                      Many of my tenants pay their rent when they are paid, which is later than the date it's due, we've just made a sensible agreement that that's OK.
                      They're technically in arrears for a while, but I know when the rent is going to be paid and it is.
                      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


                        #12
                        But why the landlord shouldn't refund the overpaid rent when the tenant has left on the expiry of tenancy?

                        Comment


                          #13
                          Because the wording of tenancy agreements usually doesn't allow for it.

                          Tenancy agreements are all different, but most of them say something along the lines of "The tenancy will start on 21/01/2020 and last for 12 months ending on 20/01/2021. The rent is £800 per month and is due in advance on the 21st of each month".

                          There's nothing that says that any part month is subject to a rebate or that in a final month the rent should be pro-rated.
                          In most cases the landlord and tenant come to a perfectly sensible arrangement and everyone's happy, but not all tenancies end in such a neat and tidy way.
                          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


                            #14
                            I still disagree that the landlord is not responsible to give refund of surplus rent where the tenancy is over and tenant left the property. By law the tenant is responsible for the rent until the last day of tenancy agreement date and if the tenant has left without delaying even one day means not even letting to become the periodic contract then landlord owe to tenant and will have to refund him.

                            Comment


                              #15
                              Originally posted by Policy reader View Post
                              By law the tenant is responsible for the rent until the last day of tenancy agreement date and if the tenant has left without delaying even one day means not even letting to become the periodic contract then landlord owe to tenant and will have to refund him.
                              Which law is that, then?

                              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

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