Taking payments 2-3 months in advance.

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    Taking payments 2-3 months in advance.

    Normally tenants pay 1 month in advance, however for students who rely on student loans, i would like payment 3 months in advance. Has anyone successfully set this up on their tenancy?

    This would almost certainly be construed as a deposit and therefore illegal under the Tenant Fees Act 2019, as it would exceed the maximum allowed deposit. The maximum deposit is 5 weeks' rent, but you seem to be proposing up to eight and a bit weeks rent, assuming monthly payments.


      You can take a holding deposit of one weeks rent, although you will need a signed agreement with the tenant to change the date on which that is repaid or converted to rent/security deposit from the default 15 days.


        You can take three month's rent in advance without it being a deposit.
        You just have to be clear about what's being paid.

        I'm not sure it's a great idea to be treating students who rely on loans differently to other students.
        More practically, student loans are often late in arriving.
        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).


          What you can't do is take three month's rent and then take a month's each subsequent month. You must wait the full three months before taking any more rent. I would say any wording to get round that would be a sham.


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