Advanced rent and S21 Notices

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    Advanced rent and S21 Notices

    Hi All,

    I have recently had new tenants move in.
    the estate agent did the whole thing and put them in.

    The arrangement with rent payments was this. 6 months AST Tennants pay last 3 months rent in advance and then make 3 monthly payments in advance. Ie start of the month.

    Can someone please advise me of the implications this may have should I wanted to use a s21 further down the line? This is stated in the contract as being rental payment and schedules of payment etc.

    However my concerns are the last payment will be in month 3 no further payment after that. So will it be seen as a pay monthly arrangement should matters get out of hand?

    Also will the payment in advance be seen as a deposit by any chance?

    Further as for S21 would the standard minimum 2 months apply here? Or would I need to provide longer notice?

    All your help and advice will be appreciated.

    #2
    [QUOTE=Shorif908;n1174583

    All your help and advice will be appreciated.[/QUOTE]

    Never been shown previously

    Are you still using the same letting agents, did they come up with this "payment plan"?

    Comment


      #3
      BUT to answer your question, yes the 3 months very much look like an unlawful deposit, being for a non-defined period (the last 3 months of a tenancy). If it is for a specific 3 months, its a bit lesss grey but then I'm wondering what you hope to achieve

      Comment


        #4
        It is quite likely that the 2 additional months might be seen as a deposit, unless the tenancy agreement is very specific about the initial payment being for months 1, 5 and 6.

        If it is a deposit, you won't be able to use a s21 notice without returning it and the deposit will be unlawful (as it's more than 5 weeks rent) and will need to be protected.

        It's possible the agent has done something clever, but this type of attempt to circumvent the deposit rules is generally frowned on.
        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


          #5
          Hi guys,

          Thanks for that I have copied the below excerpts from the agreement.

          Please do let me know your thoughts.

          £550.00 per calendar month which is payable monthly in advance
          The tenants, X,Y,Z have agreed to pay 3 months rent in advance, totalling to= £1,650.00
          This will cover the following periods:
          8th January 2022 to 7th April 2022


          The Tenant shall pay £550.00 payable monthly in advance (which is £130.69 per week) (“the Rent”) for the duration of the Tenancy subject to any changes agreed on any renewals of the Term.
          The tenants, X,Y and Z have agreed to pay 3 months rent in advance, totalling to= £1,650.00
          This will cover the following periods:

          8th January 2022 to 7th April 2022.

          I hope these make it clear that rent was paid in advance and not a deposit.

          Thank you

          Comment


            #6
            I wouldnt confuse the issue by specifying the weekly rent if you want the tenancy period to be monthly , but otherwise I can't see anything wrong with that.

            Comment


              #7
              I agree with above, but maintain that the whole thing is a bit pointless

              Comment


                #8
                Apart from anything else, £550/month is never £130:69/week. How did you arrive at that figure?
                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


                  #9
                  Originally posted by theartfullodger View Post
                  Apart from anything else, £550/month is never £130:69/week. How did you arrive at that figure?
                  I changes the figures around a bit on this forum.
                  So for illustration purposes.

                  Comment

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