Making rent payment payable on entering into a tenancy agreement?

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    Making rent payment payable on entering into a tenancy agreement?

    My understanding is for a new tenancy rent typically falls due on commencement of the tenancy (first day of each period thereafter).

    Is there any reason why I could not make the first rent payble on entering into the tenancy agreement?

    #2
    I think it depends what you mean by that.

    The tenancy doesn't begin until the tenant takes possession. If youre trying to charge for the period between entering a contract and the tenancy starting then that cant be rent and would be a prohibited payment in England, and shortly in Wales.

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      #3
      The legal default for rent is payable in arrears, so unless tenancy specifies rent in advance then no, after a month.

      The simple way I ensure rent is paid prior to start is by not signing and giving copy of tenancy to tenant ditto keys
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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        #4
        Originally posted by DPT57 View Post
        I think it depends what you mean by that.

        The tenancy doesn't begin until the tenant takes possession. If youre trying to charge for the period between entering a contract and the tenancy starting then that cant be rent and would be a prohibited payment in England, and shortly in Wales.
        No I am not trying to charge tenant for period between entering into a tenancy agreement and the commencement date of tenancy. I want to make rent payable (due at the commencement date of the tenancy) when the tenant enters into a tenancy agreement. Your use of the word 'possession' is unfortunate see LPA 1925 definition and it may give a clue why I asked the original question.

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          #5
          Well I was talking about possession in the sense of occupation, but I see that youve asked this question before, a little over a year ago. https://forums.landlordzone.co.uk/fo...moving-in-date

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            #6
            Originally posted by DPT57 View Post
            I think it depends what you mean by that.

            The tenancy doesn't begin until the tenant takes possession. If youre trying to charge for the period between entering a contract and the tenancy starting then that cant be rent and would be a prohibited payment in England, and shortly in Wales.
            That's not really true as worded. The tenancy starts when the tenant moves in. But it is perfectly feasible for a contract to start but for the tenant not to move in. Nothing compels the tenant to move in on day 1 (or really at at all). I had one tenant who did not move in at all for an entire 6 month tenancy (so there was no tenancy, but there was a contract).

            If you mean that you charge rent for a period when there cannot be a tenancy (the tenant cannot move in even if they wished to do so), then that is correct.

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              #7
              Originally posted by DPT57 View Post
              Well I was talking about possession in the sense of occupation, but I see that youve asked this question before, a little over a year ago. https://forums.landlordzone.co.uk/fo...moving-in-date
              Thank you - different thread similar topic. Much appreciated

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                #8
                Originally posted by cymro123 View Post
                Is there any reason why I could not make the first rent payble on entering into the tenancy agreement?
                No. If there is to be a gap between the making of the contract and the commencement of the tenancy, the first instalment of rent can be made payable on the date of the contract or any oher date before the commencement date.

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                  #9
                  Originally posted by AndrewDod View Post

                  That's not really true as worded. The tenancy starts when the tenant moves in. But it is perfectly feasible for a contract to start but for the tenant not to move in. Nothing compels the tenant to move in on day 1 (or really at at all). I had one tenant who did not move in at all for an entire 6 month tenancy (so there was no tenancy, but there was a contract).

                  If you mean that you charge rent for a period when there cannot be a tenancy (the tenant cannot move in even if they wished to do so), then that is correct.
                  I thought that is what I'd said, but I see that 'taking possession' doesn't necessarily mean taking occupation.

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                    #10
                    Originally posted by DPT57 View Post
                    I see that 'taking possession' doesn't necessarily mean taking occupation.
                    In the context of grantng a short term tenancy of an unoccupied residential property that is what it means.

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                      #11
                      As Lawcruncher says in reply #8 there is no reason you can’t do this. The NRLA ast agreement template actually has a space for you to specify a date for which the first months rent must be paid by as part of the initial funds. It then allows you to specify which day or date the subsequent payments will be paid each week or month as an advance rent payment.

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                        #12
                        Originally posted by Lawcruncher View Post

                        In the context of grantng a short term tenancy of an unoccupied residential property that is what it means.
                        And does the Law of Property Act 1925 definition of possession give it other meanings in certain circumstances?

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                          #13
                          Originally posted by DPT57 View Post

                          And does the Law of Property Act 1925 definition of possession give it other meanings in certain circumstances?
                          It does.

                          Section (1)(a) LPA 1925 provides that that one of the only two estates capable of being legal estates is "An estate in fee simple absolute in possession". Section 205(1)(xix) provides that possession "includes receipt of rents and profits or the right to receive the same, if any." If section 205(1)(xix) is applied to section 1(1)(a) it makes it clear that a fee simple (which for most practical purposes can be considered as meaning "freehold") does not cease to be a fee simple if the owner is not entitled to occupation because he has granted a tenancy.

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