Tenant wants to change payment date of rent

[fionaf]

One of our tenants wants to change the payment date of their rent as their job has changed and when their salary is paid has changed. I can appreciate this. They are on a periodic tenancy. Having read round this I see that it would be unwise to officially change the date and ask for the shortfall to be formally made up as this might be interpreted as another deposit and need to be protected. The most popular route seems to be to accept an informal, never put in writing (as it might jeopardise any s.8 arguments if you ever needed to go down that route), agreement to pay later and deal with the difference at the end of the tenancy but the sums involved here as it is a change by half a month are quite significant, about £550. Another option seems to be to start a whole new tenancy agreement but I presume we would have to return the deposit and re-submit the deposit as well as have the joy of phaffing about with new paperwork. 

I appreciate that 'No' is one option but they have been good tenants and I want to explore options. I am not saying we would go ahead with the change but I want to be fully informed and if saying No give very clear reasons why.  If No were not an option how would you handle this? I would also be making it clear that we would not be doing this every job change but the date he is now being paid is pretty much the industry standard of near the end of the month. 

Thanks

[Richlist]

Why can't the tenant just organise his life/ finances in order to pay the rent on the present rent day ?

Do you think if the payment due was for a mortgage, credit card,  finance agreement or virtually any other financial arrangement it would be acceptable to pay it 2 weeks late ?

I won't entertain this sort of request. I am fairly flexible if it's a couple of days late but certainly not 2 weeks. It's the tenants problem not yours. 

Offer to let the tenant pay the rent 2 weeks early. Problem then solved.

[Grampa]

Lets assume the current rent is due on the 1st day of the month and the tenant wants to change the rent due date to the 15th of the month and the tenancy is now periodic.

The way I would do it is draw up a new Ast starting the 15th and take a part payment of rent for the 1st - 14th making it clear on the rent receipt what days it relates to. This receipt and rent would be part of the periodic tenancy. The new AST would then run it line with the tenants wage pay day. 

[Richlist]

That's one way of doing it. The bottom line is the tenant must pay the rent in advance and on time NOT half a month late. 

[fionaf]

Thanks Grampa and Richlist. 

[Carryon Regardless]

I never get the payment made for specific dates scenario. Certainly when HB is involved and / or late part payments made the confusions will soon arise.

Surely a statement should / will show the date a payment is due, and the amount,

any payment date and amount also shown,

the resultant balance, being the difference plus or minus, is then clear.

 

RL is right it is their problem, until they don't pay.

If you go for a new contract you don't only have the faff of the deposit but the g'tor (if you have one) needs to sign up to the new AST with a new deed also.

In my case 'all' rents are due on the 20th but as long as they're in by the 1st following, ready for my mortgage outgoings, I don't fret too much. I do remind if it's still unpaid by the 25th though. I also have choice to apply a £30 penalty after the 25th.

 

[Richlist]

My experience is e.g. if rent is payable on the 12th of the month,  tenants will arrange their standing order payment for the 12th . This invariably leads to me receiving the money in my bank account 3-5 days later. I don't really have a problem with this.

I have one tenant who has set up his standing order a week early to ensure the money is in my account ON the rent day.......which is how it should be and how the credit card companies expect us to pay.

[Grampa]

 

If you go for a new contract you don't only have the faff of the deposit but the g'tor (if you have one) needs to sign up to the new AST with a new deed also.

 

 

I would have to disagree. Other than printing off a new deposit cert and PI which would have to be done anyway the faff is the same. I would add I use the TDS so I don't know it there is extra admin for using the DPS.

My deeds of guarantee cover any tenancy renewal etc so the guarantor doesn't need to resign. But even if they did they still would have to on a new AST without a change of dates.

 

[Grampa]

My experience is e.g. if rent is payable on the 12th of the month,  tenants will arrange their standing order payment for the 12th . This invariably leads to me receiving the money in my bank account 3-5 days later. I don't really have a problem with this.

I have one tenant who has set up his standing order a week early to ensure the money is in my account ON the rent day.......which is how it should be and how the credit card companies expect us to pay.

We use to get the tenants to set up the SO 3-4 days early for the reason RL gives above but now I appears the payments are instant like on-line payments. So we now set up SO for the day due and payment comes in on that day. Though I think there could still be a delay if the "bank" is a building society  

[Melboy]

I think I would explain to the tenant as to why you cannot alter the payment date as it is not as cut and dried or as easily done as the tenant may think it is.

My view would be for a case like this is to say to the tenant that it will be up to them to pay on the due date and how they achieve this is down to their financial planning each month which doesn't appear to be impossible given the 2 weeks difference in rent payment days.

OR

You start again with a whole new AST etc. plus the tenant has it explained to them that this will incur some financial penalty to them to cover the cost of admin. and this is just a one off time to help them out and not to be repeated on a regular basis.