rakshamc Posted June 17, 2007 Report Share Posted June 17, 2007 I have a tenant who wants to take up my property and pay 6 months or 1 year rent in advance! Does anyone know if this affects any of the legal aspects of the AST agreement? Is it OK to do this? Can I do a 1 year AST and accept the full rent in advance? He has a bad credit rating and will not pass the referencing checks and also has just been made redundant. But if he pays all the rent in advance, should I be bothered? What else should I be checking for? Any comments and suggestions will be gratefully received. Link to comment Share on other sites More sharing options...
J4L Posted June 17, 2007 Report Share Posted June 17, 2007 I'd be very careful because of Money Laundering &/or cannabis factory. Have you done reference checks on this guy already or is HE saying that they won't come back any good?? Do everything as you would normally and then you can make an informed decision. Sometimes it does happen that people want to pay a load of cash upfront but that's where you have to do your checks aswell and not just take the money and 'run' so to speak. Link to comment Share on other sites More sharing options...
lauralivesartnouveau Posted June 18, 2007 Report Share Posted June 18, 2007 Hi Be very careful it is my experience that tenants who flash the cash are trying to win you over by manipulation. He may have some other motive for not wanting you to visit to collect the rent. If your going to do it serve a section 21 immediately after he has signed tenancy agreement. Get him also to sign a receipt for the section 21 so you have proof of service. I never accept checks for first payment and I have also discovered tenants who want to move in the same day whatever their story are probably desperate (usually because they have been evicted) and don’t want you to have time to check them out. Oliver Link to comment Share on other sites More sharing options...
Matthew Posted June 18, 2007 Report Share Posted June 18, 2007 Also reading a book yesterday on buy-to-let, a lot of mortgage criteria stated that it does not accept AST's paid in advance, so check with your mortgage lender to avoid breaking thier rules and incurring penalties. HAving said that, not sure how or why they would find out??? Link to comment Share on other sites More sharing options...
odecar Posted June 18, 2007 Report Share Posted June 18, 2007 I'm with J4l its the classic case of cannabis factory / druggie. May not be in this case BUT the warning signs are there. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 18, 2007 Report Share Posted June 18, 2007 Hi Guys I have people who do this -who have actually all turned out to be good tenants - one guy stayed 3 years and paid up front every 6 months - Just do the proper referencing and treat as normal - although "extra" inspections in the first few months are probably advisable !(re cannabis etc) If they dont want to be referenced then that chnages things some what! Also issue s21 as Oliver says - although i never have ! Simon Link to comment Share on other sites More sharing options...
GPEL Posted June 18, 2007 Report Share Posted June 18, 2007 6 months in advance isn't necessarily a bad thing but something to ask yourself is what happens after the end of the 6 months and they wish to still live there. I have a clause stating that should 6 months have been paid in advance and there is no positive change to the original circumstances then a further 6 months in advance would be required or the property must be vacated. Link to comment Share on other sites More sharing options...
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