Rental method

[ienquiry]

Hi
Just a quick question, I'm new to rental. Just want to know if

for example I have a tenant that moves in on 1st July, does he pay in advance for July as well as August and then and at 1st August pays by standing order thereafter. I'm planning to collect a holding deposit for 1.5 times rental and return this after the tenancy is over, does that sound like a common practice.

Also, the tenant has indicated that he wants to rent for 12 months, is it better to draw up an AST for 6months and then another one for a further months?

Thanks in advance for your replies.

[pippay]

If your tenant pays in advance to the end of July AND the end of August, he's paying 2 months in advance. If he then pays again on 1st August he's still 2 months in advance as he's now paid till end of September !!

To stay one month in advance your tenant needs to pay from 1st July - 31st July and then every month on the 1st of each month.

If I were your tenant I wouldn't be willing to pay 2 months in advance.

1.5 times rental for the holding deposit is normal practice.

If you draw up an AST for six months then after that expires it automatically reverts to a periodic tenancy, if you're both happy with each other, with no need for an additional tenancy to be drawn up. The terms of the original AST remain in force for the duration of the periodic tenancy.

Some people may say 6 months is better than 12 months because if you find he's unsuitable you don't have to wait for the 12 months to expire before issuing a S.21 !! However, a 12 month tenancy binds him to staying there for the full 12 months or paying you for the full 12 months..

Others on here may have superior knowledge in this respect so wait for their answers !!

Hi
Just a quick question, I'm new to rental. Just want to know if

for example I have a tenant that moves in on 1st July, does he pay in advance for July as well as August and then and at 1st August pays by standing order thereafter. I'm planning to collect a holding deposit for 1.5 times rental and return this after the tenancy is over, does that sound like a common practice.

Also, the tenant has indicated that he wants to rent for 12 months, is it better to draw up an AST for 6months and then another one for a further months?

Thanks in advance for your replies.