Standing order to pay rent - which date?

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    Standing order to pay rent - which date?

    I'm looking for clarification of rent payment date, since I think the LA is being a bit slack.

    We're signing a new contract (as tenants) and the rent date (and first day of tenancy) is the first of the month. As usual, we will set up a standing order so that the money is received by the first of the month, since we're conscientious and have no intention of paying late.

    When out of interest I asked the LA what date they would suggest to set up the SO, they said "Oh, the first of the month". She didn't seem to see my point when I queried this and asked whether we would be technically paying late every month if we did that.

    So, is the LA being a bit slack? I assume we can't rely on faster payments or a new form of instant magic payments? Or does the rent date mean the rent is now due but can be paid soonish?

    As I say, we plan to pay in plenty of time, but I'd love to know the definitive answer.

    Many thanks!

    #2
    I pay my accounts on the due date by faster payment system, the bank holding my credit card always make the payments due date to be on a Sat/Sun or Bank Holiday and they now tell me they do not accept payments on the due date if that falls on a Sat/Sun or Bank Holiday. 2 minutes past 4pm on a Friday was 24 hrs before the end of due date but still not acceptable and they deem it warrants the £12 late payment charge. I am expected to pay before the due payment date so why the hell do they give a due payment date?

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      #3
      Originally posted by all_change View Post
      So, is the LA being a bit slack? I assume we can't rely on faster payments or a new form of instant magic payments?
      She's being slack, for sure. 'Faster Payments' may well make the transfer happen more quickly, but no guarantees without knowing which banks are involved; so she should certainly be suggesting that you action your s/o 3 working days before the rent-due date.

      If not, then for all you know, in 6 months' time you could unwittingly end up with a landlord seething about his wretched tenant who always pays his rent late (yes, we've had them on this forum...)

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        #4
        Thanks for the replies.
        We are on good terms with the LL and see no reason to accidently ruin that by making shoddy admin mistakes...
        Does this (again, speaking purely technically) situation depend on the precise wording of "due date", "rent day" etc, and where can this information be found?
        Thanks again

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          #5
          Originally posted by all_change View Post
          Does this (again, speaking purely technically) situation depend on the precise wording of "due date", "rent day" etc
          Not at all: the day the rent is due - regardless of what name it's called (and someone will now contradict me!) - is the day the landlord should get the dosh in his hands, and it's the tenant's responsibility to ensure that happens.

          Comment


            #6
            Are you paying the landlord direct? or to the agent?

            If direct to the landlord then actioning your s/o to pay 2-3 days earlier than the due date is good practise.

            If paying the agent direct, then it is not uncommon for agents to collect all the rents due and make a mass payment, once payments have cleared through their account, to their landlords. Their t&c's of business (between la and client) will state when the rent will be paid into the landlords account.

            One also has to take into account that a lot of people are paid on the last day of the month so having an s/o come out of their account, even 2/3 days earlier, may cause a problem so having an element of flexibility is not unusual.

            NOTE: I'm not defending agents who do this, nor am I saying its right, I'm just pointing out that it is common practise and it may be a reason why your agent is happy to accept your payment a couple of days later.
            My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

            Comment


              #7
              Originally posted by all_change View Post
              I'm looking for clarification of rent payment date, since I think the LA is being a bit slack.

              We're signing a new contract (as tenants) and the rent date (and first day of tenancy) is the first of the month. As usual, we will set up a standing order so that the money is received by the first of the month, since we're conscientious and have no intention of paying late.

              When out of interest I asked the LA what date they would suggest to set up the SO, they said "Oh, the first of the month". She didn't seem to see my point when I queried this and asked whether we would be technically paying late every month if we did that.

              So, is the LA being a bit slack? I assume we can't rely on faster payments or a new form of instant magic payments? Or does the rent date mean the rent is now due but can be paid soonish?

              As I say, we plan to pay in plenty of time, but I'd love to know the definitive answer.

              Many thanks!

              Your tenancy agreement is your only reference.
              When it refers to how and when rent is to be paid, It should read that rent should be received "by" 1st of each moth.

              You can pay rent anytime, so long as the landlord receives it by the stated time of the month.

              You should check, of course, with your bank on how long it will take for a SO or other payment method to reach your landlord's account.
              I would recommend that you factor in weekends and public holidays.
              When I was a tenant, I would set the date for my rent to go out on the 27th of the previous month..
              Nowadays, some banks do payments on the same day (Natwest for sure)

              If your tenancy agreement is unclear about this fact, you should seek written confirmation from the landlord or the landlord's stated representative/agent.

              Comment


                #8
                When I looked this up the rental advice on government website is that if you pay via standing order it is deemed paid the day your money leaves your account not the date received by landlord

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                  #9
                  That seems reasonable to me - for all you know, the payment could be going to an ancient bank that only manually transcribes the payment from their receiving account to the landlord's account on every second Thursday!

                  Comment


                    #10
                    The tenant's obligation is to pay rent on the day it is due. If it is paid early it is treated as a sum to be held and applied as rent on rent day. Accordingly the rent is not paid until rent day. This can have consquences for a tenant.

                    Say the rent is payable on the 12th and the landlord gets in on the 10th. The landlord sells the property on the 11th. On the 12th the new landlord (assuming he has not received the amount paid from the old landlord) is entitled to ask for the rent. If the tenant says he has paid it, the new landlord can correctly say: "Not to me. The rent is due today and you haven't paid it today. Please pay." Whilst the amount paid to the old landlord will be recoverable, a tenant does not want to get into a postion where he has to claim it... and perhaps never get it.

                    Comment


                      #11
                      Originally posted by Mandyjane333 View Post
                      When I looked this up the rental advice on government website is that if you pay via standing order it is deemed paid the day your money leaves your account not the date received by landlord
                      Where does it say that - because it's not correct?
                      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


                        #12
                        Originally posted by Lawcruncher View Post
                        Say the rent is payable on the 12th and the landlord gets in on the 10th. The landlord sells the property on the 11th. On the 12th the new landlord (assuming he has not received the amount paid from the old landlord) is entitled to ask for the rent. If the tenant says he has paid it, the new landlord can correctly say: "Not to me. The rent is due today and you haven't paid it today. Please pay."
                        Do you think that is a likely scenario with a residential let?
                        Paying slightly earlier helps build goodwill and is are more likely to result in a better reference at the end.

                        Comment


                          #13
                          Advance paid rent requires protecting (in theory).

                          A deposit is " 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.


                          If we're exploring remotely or theoretically possible risks.
                          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


                            #14
                            Originally posted by jpkeates View Post
                            Advance paid rent requires protecting (in theory).

                            A deposit is " 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.


                            If we're exploring remotely or theoretically possible risks.
                            I think the keyword there is "security". The word implies that what is held will in due course be returned if all the obligations are met. A tenant who pays early does not expect the money back.

                            Comment


                              #15
                              Originally posted by boletus View Post

                              Do you think that is a likely scenario with a residential let?
                              Paying slightly earlier helps build goodwill and is are more likely to result in a better reference at the end.
                              Generally, the parties leave everything to their conveyancers. In practice neither party's conveyancer will consider the possibility that rent has been paid before it is due and I do not think there is any obligation to do so. Accordingly, completion will proceed simply apportioning rent as at completion. If the new landlord, assuming the rent has not been paid, asks the tenant for it, the tenant is naturally going to say he has paid it. If both new and old landlord are honest and reasonable, the position will be resolved by the old landlord paying the rent to the new landlord. However, as between tenant and new landlord the rent is payable by the tenant.

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