Renting through open rent paying rent upfront

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    Renting through open rent paying rent upfront

    Open rent don’t do 12 months upfront payment so we have to do one month to them and then the tenant will pay 11 months into our bank account.

    they have agreed in six months to pay another 12 months upfront so they are always at least six months upfront

    this is the only way we would agree to renting to them.

    my only worry is even with having so much upfront all the time is if they fall behind with our agreement will it take more than six months to evict?

    #2
    What you're doing isn't legal.

    Paying rent in advance is fine, but you can't take another 12 months rent after 6 months, the 6 months rent already paid either becomes a 6 month deposit, or the new payment itself is all a deposit.

    The maximum a deposit can be is 5 weeks rent and you won't be able to protect amounts that much (which you're obliged to do when it's a deposit) because the protecting companies won't allow it.

    The penalties for doing that would be eye-watering.

    If the tenant is that dodgy you need that much up front, don't rent to them.
    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


      #3
      +1

      Those 11 month's rent sound so like a deposit - see legal definition... s.212(8) Housing Act 2004
      https://www.legislation.gov.uk/ukpga...34/section/212
      (8)In this Chapter—

      ..........................

      “tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
      (a) the performance of any obligations of the tenant, or
      (b) the discharge of any liability of his,

      arising under or in connection with the tenancy.
      3x 11 months (so 33 month's rent at risk) penalty for breaching deposit protection rules would be painful: Tenant may be viewing (free, open, forum...)

      Sigh.......
      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...

      Comment


        #4
        Ok thanks

        in that case it’s all off

        as these tenants do not have a guarantor that will qualify

        their guarantor is is a home owner but still has mortgage so my agency said they don’t qualify

        Comment


          #5
          It's entirely up to you who you take as guarantor. A homeless person with only the clothes they wear may be guarantor, if you so decide. Agent works for you and does what you say, not the other way round.
          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...

          Comment

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