AST- fortnightly rent payments because of HB?

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    AST- fortnightly rent payments because of HB?

    Hi there

    How do I make provisions for 26 rental payments (because Housing Benefit (HB) is paid fortnightly) in my AST with my Tenant?

    As HB is paid fortnightly to my tenant - I have agreed to receive it fortnightly.

    Do I:
    1. Create a 26 fortnightly instalment tenancy agreement\AST?
    2. In terms of the last day of the AST do I simply count up the last day of the 26th fortnight and make that the last day?
    3a. If I can create a 26 fortnightly AST are there any implications for issuing s8 or s21?
    3b. Would I still state the expiry date as the last date of the tenancy as per normal?

    (Many thanks and apologies for the rather long post.)

    #2
    1. Best is to reserve a monthly rent but allow T to pay fortnightly.
    2. If it must be a fortnightly rent, let for a twelve-month term nevertheless.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Originally posted by jeffrey View Post
      2. If it must be a fortnightly rent, let for a twelve-month term nevertheless.
      Hi Jeffrey

      Even though the full year's rent will be paid over a period of 13 months?
      To clarify, Housing Benefit (HB) paid to Tenant in fortnightly payments, the equivalent monthly payment would be 2 x fortnightly payments i.e. 4-weekly payments. Given that there are 52 weeks in one year - this would be the equivalent of 13 4-weekly payments or 26 fortnightly payments.

      How do I cater for the 13th month?

      Many thanks,

      Comment


        #4
        Work the payments out over the 13 month period.

        e.g. rent = £500pcm
        = £6000pa

        6000 divided by 13 = £461.54 4 weekly.
        divide this by 2 and you get a fortnightly payment of £230.77 a fortnight
        Ambition is Critical

        I don't profess to be a knowledge in all areas, my advice is based on life experience.

        Comment


          #5
          Originally posted by J4L View Post
          Work the payments out over the 13 month period.

          e.g. rent = £500pcm
          = £6000pa

          6000 divided by 13 = £461.54 4 weekly.
          divide this by 2 and you get a fortnightly payment of £230.77 a fortnight
          Hi J4L

          The payments will be paid over 13 months to begin with, i.e. I will receive 12 months rental income over the 13 months.
          If I create a 12 month tenancy then on paper (in the AST) I will not be getting the full year's rent and surely the tenant could leave and I would still be owed some money as they need to be in the house for 13 months for me to get my 12 months of money(?)

          On a variation of your calculations I have added the 13 monthly (26 fortnightly) payments together and have divided this by 12 months but the Housing Officer has said that this is incorrect.... I have not asked how this is incorrect, but I will do.
          However, in the meantime any information in the meantime would be extremely gratefully appreciated.

          So, to re-iterate this confusing issue - how do I cater for the 13th month in the AST?

          Comment


            #6
            Why not just do a normal ast with the rent due every four weeks.

            Or due pcm and it would be the tenants responsability to make sure the rent was paid (get a guarantor as well)

            I think you are complicating things which may make it more differcault to serve section 21 and or section 8 if you need to at later date.

            Comment


              #7
              4 weekly rental periods are troublesome IMHO - monthly is better where possible.

              VJP. The HB payments are usually made fortnightly or 4 weekly in arrears. I dont get where you get 13 MONTHS payments are made over 12 months - surely you mean 13 4 WEEKLY payments are made over 12 months - which is correct.

              J4L is absolutely correct IMO - mainly because I dont understand your post regarding 13 months worth of rent being paid in 12 months.
              Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.

              Comment


                #8
                It;s really not as difficult as you are making out.
                Change the AST to rent is due every "4 weekly" period of £461.54 (on my previous example)

                Can I ask here?
                are you trying to calculate some payments in arrears and is this the cause for confusion?
                If a tenant leaves, then effectively you should receive one more payment in a months time for their notice period.
                Ambition is Critical

                I don't profess to be a knowledge in all areas, my advice is based on life experience.

                Comment


                  #9
                  Vjp

                  Be assured that in a 12mth period you will receive 13x 4(wk) payments =52wks =12mths

                  There is no 13th month ........this is where your confusion lies ......


                  The Rodent
                  A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                  W.Churchill

                  Comment


                    #10
                    Precisely
                    Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.

                    Comment


                      #11
                      Light bulb finally switched on

                      Hey

                      I am so surprised at the responses to my posting. I have finally 'clicked' as to my confusion of 13 4-weekly payments and how they equate to 12 months!!

                      Many many thanks for your constructive responses and above all your patience. )

                      Kindest Regards
                      VjP

                      Comment


                        #12
                        Originally posted by VjP View Post
                        Hey

                        I am so surprised at the responses to my posting. I have finally 'clicked' as to my confusion of 13 4-weekly payments and how they equate to 12 months!!

                        Many many thanks for your constructive responses and above all your patience. )

                        Kindest Regards
                        VjP

                        Dont mention it !!!

                        Have spent many hours explaining to tenants that there are NOT 4 weeks in a month, which is basically the same conversation !!!!
                        The Rodent
                        A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                        W.Churchill

                        Comment


                          #13
                          Originally posted by Rodent1 View Post
                          Dont mention it !!!

                          Have spent many hours explaining to tenants that there are NOT 4 weeks in a month, which is basically the same conversation !!!!
                          The Rodent
                          There ARE at least four weeks in every month; and all (except non-leap-year February) also have a few days' excess.
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment

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