Should rent come from just 1 tenant or all of them?

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    Should rent come from just 1 tenant or all of them?

    Hi all,
    Am about to become a landlord in a few days time. I have 3 tenants who will be moving into my flat.

    Obviously I will get them all to sign the tenancy agreement, and I have insisted that the rent is paid by standing order every month.

    My question is:
    how should I request that each share of the rent be paid? i.e. Should I ask for just one payment each month coming from just one of the tenants' bank accounts (& leave them to sort out the cost-sharing between themselves)? Or should I request that each of the tenants pay me money from each of their bank accounts? What is the usual thing to do with a joint tenancy? Are there any advantages / disadvantages of either method?

    Many thanks in advance,
    John

    #2
    The standard approach is to take an equal amount from each tenant. This is the fair way. Getting payment off only one tenant puts more responsibility than is neccessary onto him, both with respect to you and the other tenants. If they all pay seperately, you immediately know who hasn't paid. If one pays, you cannot know for definite who has not actually paid.
    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.

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      #3
      Have you checked the HMO regulations?

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        #4
        You say three tenants into a flat, is this a normal shared tenancy or is it an HMO? If the former then the tenants are jointly liable for all the rent, you take it from one account, how they apportion the costs is their problem. If it is an HMO, I'll leave that to someone who knows about them.

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          #5
          I would disagree MrWoof...I see no reason not to take payment seperately, for the reasons I have listed above. And in all my time as a joint tenant, I have always paid my rent seperately to other tenants. The only exception I can see is if there were two tenants, as a couple.
          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.

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            #6
            Originally posted by MrShed View Post
            The standard approach is to take an equal amount from each tenant. This is the fair way. Getting payment off only one tenant puts more responsibility than is neccessary onto him, both with respect to you and the other tenants. If they all pay seperately, you immediately know who hasn't paid. If one pays, you cannot know for definite who has not actually paid.
            Since they are all jointly and severally liable it is irrelevant to the LL "who has not actually paid". He can pursue any or all of them. A single rent payment is an excellent way of simplifying things.
            Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

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              #7
              I have just worked out that yes it will be an HMO, as there will be 3 people living there. Does this make a difference to how the rent is collected?! I thought HMO regulations were to do with health & safety etc...?

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                #8
                as far as I know it makes no difference
                Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

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                  #9
                  Originally posted by johne1234 View Post
                  I have just worked out that yes it will be an HMO, as there will be 3 people living there. Does this make a difference to how the rent is collected?! I thought HMO regulations were to do with health & safety etc...?
                  This does not necessarily mean that it is an HMO, I believe that the difference revolves around whether they have their own, lockable rooms and share facilities.

                  Comment


                    #10
                    Incorrect MrWoof.

                    Johne, you need to do a lot more research into HMO regulations. If the tenants are on separate ASTs, , then you are liable for Council Tax.

                    It doesn't affect how you receive the rent, but there are many other complications.

                    You need to speak to the Private Housing Section at your local council, as all councils vary slightly.

                    Comment


                      #11
                      An HMO is any property with 3 seperate people, part of at least 2 seperate families, living in it. I think I've got that right experts? MrWoof, HMO licensing is totally different from HMO's generally...this may be where you are getting confused.
                      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


                        #12
                        Many thanks for these replies. To clairfy, there will be a group of 3 friends moving in to share the flat. Therefore it will be an HMO. There will only be 1 AST contract, which they will all sign.

                        So anyway, the answer to my original question seems to be that there is no standard way to collect the rent, & everybody seems to do it in different ways.

                        Thanks again,
                        John

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                          #13
                          Just to follow on from this, now that I have determined that this will be an HMO, I don't see how this will affect anything at all?

                          Please somebody correct me if I'm wrong, but from what I can see, HMO regulations are just about health & safety issues, which any sensible landlord would address anyway, irrespective of whether the property is an HMO or not?

                          John

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