Tenancy agreement with different first month

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    Tenancy agreement with different first month

    I would like to offer an incentive in a new tenancy agreement such that the first month's rent will be reduced, but subsequent months will be at the agreed (higher) amount. Would this in any way compromise the assured shorthold tenancy agreement and are there any other pitfalls?

    Thanks for any help.

    #2
    No, it would be OK; but have it drafted by your solicitor and do NOT try DiY.
    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
      or, do it by side letter which you hand to the tenant at completion ie

      Dear Tenant,

      In consideration of you today entering into a tenancy of 4 Bloggs Court for 12 months at £800 per month I agree that £200 credit will be allowed by your landlord against the first month's rent.

      Yours

      Fred landlord


      You can show the tenant a draft of the letter to be provided at completion.

      I cant see why this cant be done "DIY". what do you say Jeffrey?

      Comment


        #4
        I say what I said.
        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


          #5
          Indeed you did, but in reality what is your reservation about a side letter? They are used all the time in giving RFPs with commercial lettings..

          Comment


            #6
            Originally posted by quarterday View Post
            Indeed you did, but in reality what is your reservation about a side letter? They are used all the time in giving RFPs with commercial lettings..
            Yup, but much too risky for use by parties both unadvised.
            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


              #7
              As risks go, I don't see it as being very major, especially if the tenant is required to sign a standing order mandate form for the full monthly rent in favour of the landlord as from a month after the commencement date.

              Comment


                #8
                OK- you see no risks. OP's £££ is at stake, not yours/mine. So it's for OP to decide one way or the other.
                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


                  #9
                  Without wanting to labour the point (which I suppose I am) what possible risks could there be? The tenant thinking the side letter says something different to what it actually says? If you want to talk about risk, one of the biggest is having an empty property, and especially where the insurance company is not informed that it is unoccupied for more than 30 days. I dont think any insurance company will pay to help you get possession against intruders who define themselves as squatters, whether or not they entered without the use of force.

                  I cant think its necessary to pay a solicitor to devise a mechanism to allow that, say, the first week is gratis. I've nothing against solicitors per se, except its true to say that most of them, present company excepted, are slow and expensive. Even a junior solicitor charges £150 plus VAT for an hours' work; more experienced ones double that! Dont start me on the old chestnut "Contemplation time"!

                  A well considered letter under hand ought really to suffice.

                  Comment


                    #10
                    Thank you gentlemen.

                    I note Jeffrey's caution, though I am still not aware of the pitfalls that may typically result from a DIY approach to this issue. I fear there is not time to have a solicitor
                    create a document as the tenancy is due to be signed the day after tomorrow.

                    Therefore presumably I must either use a side letter as suggested, or perhaps make the tenancy agreement stipulate a rent of £X for the first rent due date and £Y for each rent due date thereafter?

                    Comment


                      #11
                      of the two options you mention in your final para; I'd go for the side letter.

                      Comment

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