Carryon Regardless Posted March 25, 2013 Report Share Posted March 25, 2013 Please remind me chaps and chapesses of the risk of accepting 6 months rent up front. A lady anticipating the need for a flat for just the 6 months, if mine is to her liking, would wish to pay the 6 months rent up front. I seem to remember some issue around the risk of having set up what would become a 6 monthly periodic later, with the associated repossession period of notice?? Or is my geriatric memory playing up again ? Link to comment Share on other sites More sharing options...
Grampa Posted March 25, 2013 Report Share Posted March 25, 2013 You are quite right and if you had a 6 month tenancy that was 01.01.13 - 30.06.13 with 6 months paid up front the tenancy period would be 6 monthly and if you then went a few days into the start of a periodic tenancy (1st july onwards) any s21 wont start until the next 6 month period which would be 01.01.14 and the notice period of the s21 ending 30.06.14. To get round this you can set up a 7 month tenancy 01.01.13 - 31.07.13 (assuming £1000 pcm and 6k paid upfront) with wording such as: Rent to be paid by the following amounts for the following periods. 1st Jan 2013 to 30th June 2013 the rent shall be £6000 thereafter from the 1st July to 31st July the rent shall be £1000 per calender month. All further rents are payable on the 1st day of each calender month.for the sum of £1000. I have done the above from memery but you get the idea. Link to comment Share on other sites More sharing options...
Richlist Posted March 25, 2013 Report Share Posted March 25, 2013 In addition there are some other dangers with tenants offering 6 months 'up front' which may or may not be relevant to your situation:- * Often applicants who know they will not pass reference checks......eg because they are self employed and don't have accounts for the required length of time.....will often offer to pay in advance. * The press carry regular stories of tenants paying up front in the expectattion that the landlord will leave them alone........then the resulting canabis farm is usually raided by the police and the landlord is left to clear up the extensive damage. Good luck Link to comment Share on other sites More sharing options...
Carryon Regardless Posted March 25, 2013 Author Report Share Posted March 25, 2013 Thanks to both. The wording for the AST is a great pointer, I'm assuming that creating this as 'Special Conditions' as I have on my ASt would suffice. The lady is supposedly going through divorce and wants a shortish term let until the assets of the divorce (home) are split. Cover stories are a danger for those with a different agenda, in this case I would be looking for the possibility of the lady being a madam. While I may not have great issue with a madam running a business the obvious late night callers of questionable style could destroy the already bad reputation for the flats I've tried so hard to cultivate. For many years I've recognised that 'the flats' would be an ideal venue for such activities. So often the T's that say they will be such for years are gone soon, those that have shorter term plans find that their plans don't pan out and they can be there long term. Link to comment Share on other sites More sharing options...
Grampa Posted March 25, 2013 Report Share Posted March 25, 2013 We take 6 or even 12 months up front sometimes but what you have to remember is to still do inspections and all the refs and get a guarantor if poss. I do sometimes get the comment "why do I need a guarantor and or a deposit if i am paying 6 months in advance" and the more they push that point the more I suspect there is something dodgy about them. Link to comment Share on other sites More sharing options...
Richlist Posted March 25, 2013 Report Share Posted March 25, 2013 I just automatically assume that anyone wanting to part with what is often approaching £5000 (6 months rent + deposit) in a lump sum, up front, definitely has something to hide. My answer to these applicants is always no thanks......that way I don't have problems sleeping. There are always plenty of good quality tenants around who slot very neatly into the profile I'm lookng for. Link to comment Share on other sites More sharing options...
Grampa Posted March 25, 2013 Report Share Posted March 25, 2013 If you get a couple spliting up and say the wife has been given a few quid as settlement they will offer to pay the rent up front to bring the savings below 16k (i think that is the limit) so they then are entitled to housing benefit which gets paid direct to them and they dont tell the council they have paid 6/12 months in advance. The HB then replaces some or all of their savings. But if the landlord or agent has writen a clause as mentioned above that makes it a bit tricky as they have to show the AST to the council. Though its not unheard of for tenants to write their own AST to get round these small obstacles. Link to comment Share on other sites More sharing options...
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