Affect of taking 2 months rent on Section 8

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    Affect of taking 2 months rent on Section 8

    About to let a bedsit for the first time since January.

    Can't be bothered with TDS as my main point of taking a deposit is to see if people can stump up the cash. If they cant pay 2 months up front it does not bode well for future payment.

    Thinking of either taking first 2 months rent or first and last months rent.

    I always do 6 month AST and let them go periodic.

    Would that mean they pay for month 1 and 6 or would it be the last month before they move out? If the latter scenario would it effect a section 8.


    i.e say they are on periodic and still have tht final month in hand. Can I still use section 8 if they miss 2 payments?

    Would appreciate if anyone has any advice.

    Thanks

    #2
    Just a suggestion from a completely non-expert viewpoint, could you ask for rent to be paid 2 months in advance, or even 3 months in advance?

    The problem with this is that if they decide to trash the place at the end, your only come-back would be the small claims court.

    Comment


      #3
      i would agree with Surrey and suggest 3 months in advance and tenant to commence payment on month 2 as normal after moving in. Therefore you always hold 2 months rent on their behalf so when they leave you either return them 2 months worth of rent or they dont pay the last 2 months whichever you prefer.

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        #4
        Don't you realise this breaches still the TDS regulations because they thought of landlords trying to do this much sooner than anyone else.
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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          #5
          Paul, can you give me a link to the regulation that is being breached here? Also, have the TDS providers issued any guidance as to what is likely to be considered reasonable grounds for withholding some of the deposit? It would be useful to have something to refer to when dealing with claims on the written bond provided by the scheme I work on.

          Comment


            #6
            Originally posted by Paul_f View Post
            Don't you realise this breaches still the TDS regulations because they thought of landlords trying to do this much sooner than anyone else.
            No it doesn't. So long as the two month's rent is not called a deposit, and is not held to cover damage to the property, then it is not a deposit and is not covered by TDS. All it means is that T will stop paying rent a month earlier than usual, i.e. T will pay two month's rent in Jan, one month in Feb, Mar, Apr, and May, and none in June, and move out at end of June.

            If the LL wants (and T agrees) then LL can take six month's rent in advance. It still wouldn't be a deposit, and the LL would still have to chase through small claims if T did any damage.

            And I don't think it will affect section 8 proceedings. But it could get confusing if (in example above) T does not pay rent in March. Does the LL ignore this and use the extra month paid in January to cover it (leaving LL with only a month's rent in hand) or does he proceed to evict T on grounds of non-payment of rent? If he evicts, what happens to the extra month T has paid?

            The other idea --- taking first and last month's rent --- is also confusing. Again, if T stops paying rent in March, what happens to the rent that T has already paid for June?

            Personally I think it is easier to take a deposit and protect it. It's safer both for LL and for T as it avoids LL being out of pocket due to damages and avoids the complications above regarding taking two month's rent in advance.

            Peter

            Comment


              #7
              Originally posted by pcwilkins View Post

              Personally I think it is easier to take a deposit and protect it. It's safer both for LL and for T as it avoids LL being out of pocket due to damages and avoids the complications above regarding taking two month's rent in advance.

              Peter
              Agree,

              It is far more BSing around and potential for complications than to just stump up and protect the bloody deposit.
              Now signature free.

              Comment


                #8
                Have your cake and eat it ..........

                Take 2 months and a bond .....I do ...and of course protect it ......using ins scheme so that you retain at least "some" control over it ......That way you've got your Axxx a bit more covered ...if doubtful with T then take 6 mths upfront ....straight forward enough .....

                Most people have got access to cc and in todays world accepting payments by cc are pretty straight forward ...easy for me as i have a pdq machine ..but if you havent got one just go to www.paypal.com and open an acc Bingo now you can accept payment by debit /credit card (B4 someone starts yapping ....yes there is a fee- 1.5%-3% per tx ...does it cost you ?
                NOPE.....charge the tenant) And if T hasn't got a debit/cc or funds even ..if they really want the prop ...family are usually around to help ...any card(with cardholders consent!!!will do)

                .....There is always a way ......LOL

                Simon
                Last edited by Rodent1; 04-10-2007, 21:43 PM. Reason: typo
                A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                W.Churchill

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