widwarts Posted August 12, 2006 Report Share Posted August 12, 2006 My agent has received 6 months rent in advance from the tenant which will be released to me monthly. I did not ask for this as a condition of tenancy although it is good news. I ask: Is this normal? Is there anything I can do to have the 6 months rent paid over to me by the agent and is it advisable? Many thanks Ann Link to comment Share on other sites More sharing options...
Melboy Posted August 12, 2006 Report Share Posted August 12, 2006 Certainly Not!! The 6 Months up-front should be paid directly to you! I have just had a Tenant who has paid 6Months up-front through an Agent and I have received all of the monies. Go and bang a desk! Link to comment Share on other sites More sharing options...
Trenners Posted August 12, 2006 Report Share Posted August 12, 2006 I agree with Melboy. Go and get ALL of YOUR money from the greedy letting agent. Outrageous !!!!! Mark Link to comment Share on other sites More sharing options...
GPEL Posted August 13, 2006 Report Share Posted August 13, 2006 On a point of law, though the rent has been paid 6 months in advance, it is technically still the tenants and held on their behalf, subject to the agreement payment cycle. Agents will sometimes hold it because if paid in advance and the landlord defaults, eg to the mortgage company, and the tenant has to be evicted before the end of the agreement, the agent is liable for refund of the tenants money, with no guarantee the landlord will refund the outstanding amount. However, the cynical might think differently. Notwithstanding this, I doubt your agent is being greedy. It sounds like they've been open and honest with you and should be considerate of your requirements for the future. GPEL Link to comment Share on other sites More sharing options...
widwarts Posted August 14, 2006 Author Report Share Posted August 14, 2006 Very much appreciate the views - thank you. The agent has said that she can only release the full money with a solictor's letter that I will refund if necessary. She quotes the example in case of my death ie if I have the 6 months, die and then my estate holds the funds. It seemed a bit extreme to me and following the final post it appears she is playing by the law. My concern is that a tenant that pays 6 months up front may not be able to pay further and has failed credit checks in some way. Link to comment Share on other sites More sharing options...
Melboy Posted August 14, 2006 Report Share Posted August 14, 2006 Ridiculous! We all stand a good chance of dying at any point in time and if business was to conducted on that basis nobody would get anything done. Go and get your money! and you don't need to a Solicitors letter anyway. I think it is more likely that your Agent will go bankrupt with YOUR money than it is of you snuffing it overnight! Link to comment Share on other sites More sharing options...
Trenners Posted August 14, 2006 Report Share Posted August 14, 2006 I agree with Melboy (again) - go and get YOUR money. I have never heard anything so ridiculous. It is your property and your rent. The letting agent is simply acting as your AGENT (the clue is in the name) - which means that the money they are holding is YOURS and not THEIRS. Tell them that if they dont pay you immediately you will be terminating the contract with them. Also tell them that they owe you interest for the period of time they have been with-holding your funds. The way to look at this is that if you had not engaged the letting agent - the money would already be in your bank account. Mark Link to comment Share on other sites More sharing options...
Adam Posted August 14, 2006 Report Share Posted August 14, 2006 Get rid of the letting agent! They don't do anything that you can't do yourself. Link to comment Share on other sites More sharing options...
GPEL Posted August 15, 2006 Report Share Posted August 15, 2006 The money is neither the agent's or the landlords until the rent due date. Taking it advance is sometimes done if there is some uncertainty therefore protecting both the landlord and tenant. If the agent is holding it make sure they keep it in a protected client account therefore assured against agent fraud (these accounts don't generate interest either). If tenants circumstances are still the same at the end of the fixed period, get your agent to take another amount in advance and consider re-possesion if tenant objects. Link to comment Share on other sites More sharing options...
widwarts Posted August 27, 2006 Author Report Share Posted August 27, 2006 Thank you for all the advice. It appears the tenants girlfriend is living there now. They had initially looked at the property together and when it came to the tenancy signing it was the tenant only. Link to comment Share on other sites More sharing options...
Ladybug Posted August 28, 2006 Report Share Posted August 28, 2006 Really not sure if this is helpful or not but we're going to get a two year tenancy with all rent paid up front. My letting agent said that all monies would come to me after they had taken commission. Not least I intend to buy some premium bonds... Link to comment Share on other sites More sharing options...
bruceb_uk Posted August 31, 2011 Report Share Posted August 31, 2011 Think GPEL is right and the other posters are being a tad hasty. it is not YOUR money yet......you rent your property on an ongoing basis. The rent is the tenant's money until each due date. However, your problem now is the second tenant. That is quite a major concern, because if they were to split up and he moved out, you would have no legal basis to evict her. I am being a bit of a barrack-room lawyer, but my other half is (very) ARLA qualified and this rings alarm bells from discussions she's had in the past. If the partner has moved in and is not on the agreement, she is technically a squatter I believe, and you would have a hard time getting rid of her. The 'proper' tenant may well be in breach of his agreement by moving her in - you need to check your agreement as to whether that's covered. Link to comment Share on other sites More sharing options...
Melboy Posted September 1, 2011 Report Share Posted September 1, 2011 It has only happened for me the once but I let a property out with 6 months rent money being paid in advance and the LA paid the the whole amount to me less their monthly commission. Sounds right to me. Contracts are drawn-up for the protection of both Tenant and Landlord as far as the money side of things are set out. Why not? better off in my bank then the LA's. LA's have little or no involvement in how the rent money for advance payments is decided so why should they keep the Tenant's money in their bank account. Mel. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted September 1, 2011 Report Share Posted September 1, 2011 If the property is let on a 6 month AST there is already an agreement for 6 months rent to be paid, the LL is allowing a situation of credit in that the rent instalments shall be paid monthly (usually). The T has been happy to pay. The money certainly does not belong to the A. Requesting a solicitors letter is prevaricating, what could it say that a receipt for the money (or statement) would not ? The A has taken the money on behalf of the LL. Link to comment Share on other sites More sharing options...
bruceb_uk Posted September 1, 2011 Report Share Posted September 1, 2011 I think there is another legal issue with paying it in one go. If you take rent in one payment, you run the risk of setting up a tenancy (in the eyes of the law) where the rental period is 6 months, not one month. This is fine as long as everyone abides by the terms of the agreement, but do you want to have to give a period's notice of 6 months to get your house back? You may run into the old "statute overrides contract" position where your tenancy agreement doesn't hold up because the over-riding legal position defines the rental period by how you take rent. Personally, we wouldn't advise a client to take the rent in one go....cans of worms, and you need to be in a strong position if you ever go to court, asking a judge to put a family on the street. They are VERY reluctant to do it, so be careful. Link to comment Share on other sites More sharing options...
bruceb_uk Posted September 1, 2011 Report Share Posted September 1, 2011 Get rid of the letting agent! They don't do anything that you can't do yourself. If you can do all your own maintenance, do your referencing, book your inventories, do your property visits, draw up your notices and represent yourself in court during office hours then ditch the agent. Oh and you have a decent AST template that has been tested in court, of course. Oh, and you have someone to cover for when you're sick or on holiday. :-) I would say that lls do need to remember that it is THEIR property - some agents are idiots and need to be told so - but the agent does do a useful role, particularly for multiple landlords. Admin/maintenance on a portfolio of 20 properties is no joke. Get one thing wrong and your position in court starts to look very weak. Link to comment Share on other sites More sharing options...
chrissmith Posted September 1, 2011 Report Share Posted September 1, 2011 Sorry if I sound like a cynic, but the sort of people that pay that much up front are the sort of people who dont want you to disturb their cannabis factory. Link to comment Share on other sites More sharing options...
Grampa Posted September 1, 2011 Report Share Posted September 1, 2011 There are a lot of assumptions being made here without the full facts. 1 The contract could have been drawn up with the period 6 monthly which would mean the Landlord would be entitled to the full amount no question. 2 The tenant could have requested the agent to hold on to the full 6 months rent and release it in monthly installments. a Some tenants like to empty their account so they can claim housing benefit. b It is not unknown for landlords to not do any maintenance if the rent has been paid in full so the tenant cant threat to hold back rent if works not done. 3 The agent may just want to hold on to a large sum of money for the interest (not much at the moment) to help with their cash flow. This is the most likely reason. There are other issues here as well. If the agent has just drawn up a normall 6 month contract with the rental period monthly and is holding back funds it could be classed as unprotected deposit funds and the implications that go with that.. A tricky tenant could easily try that to make a few bob. If 6 months rent is taken up front unless the contract is worded correctly the period will be 6 months and not monthly which will mean 6 months notice will have to be given. So the wording on the contract should be something like this if assuming the rent is £1000 pcm and for 6 months and £6000 taken up front From 1st January 2011 to 31st May 2011 the amount of £5000.00 From 1st June 2011 to 30th June 2011 the amount of £1000.00 and thereafter £1000.00 every calendar month payable on the 1st day of every month Link to comment Share on other sites More sharing options...
Melboy Posted September 2, 2011 Report Share Posted September 2, 2011 Sorry if I sound like a cynic, but the sort of people that pay that much up front are the sort of people who dont want you to disturb their cannabis factory. ...........or as in my case a couple coming in from Overseas (Spain...sold-up) who knew they wouldn't pass the UK credit check so offered 6 months up-front payment. Upon interviewing they passed all the other requirements. The cannibis question still baffles me as to how or why they can get away this for so long. Either the Landlord or the LA are not doing their job and that is within the month of occupation check everything is OK and that your new tenants are settling in. Mel. Link to comment Share on other sites More sharing options...
Guest caravanj Posted September 5, 2011 Report Share Posted September 5, 2011 Make sure that rent paid up front doesn't equal cannabis farm!! Police or HMRC drugs officer & they'll tell you it's a standard tactic for a cannabis factory operator. Link to comment Share on other sites More sharing options...
Grampa Posted September 6, 2011 Report Share Posted September 6, 2011 What some landlords seem to forget is you still need a guarentor even if 6 months paid up front and regular inspections also. Just because some rent is paid in advance you have to think ahead and how will the rent be paid in 6 months time. Link to comment Share on other sites More sharing options...
cb250870 Posted November 2, 2011 Report Share Posted November 2, 2011 I have just posted a question saying that I am new at letting out my property. Well I fairly am. But i didnt want to sound stupid as I have done it once before. Then the tenant asked to pay up 6 months in advance, I said no as I wanted to collect the rent myself so I could see that everything was ok. So i duly collected every month and the house seemed ok but I never checked upstairs at all. Anyway after 4 months they disappeared and had left my house a wreck as they had been using the house as a cannabis factory. They had left all the equipment, everything upstairs for me to dispose of except the cannabis. Cheers. But I am now thinking what if I had taken the money up front or by bank every month and hadn't checked the house, maybe it would all have been wrecked. Maybe I was just unlucky. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 2, 2011 Report Share Posted November 2, 2011 I can't speak for Scotland here or your other thread, maybe others can ?? The talk of regular inspections to spot the Cannabis factory scenario only has value in a SPT as during a fixed term they deny access and there is naff all can be done. You suspect, have no evidence, they're there till the end of the fixed term at least. Even being correct and dynamic regarding service of the S21 they're likely there for a couple of months longer. The reality is paying or not and preventing inspections they have an 8 month tenancy. How long do they need ?? Link to comment Share on other sites More sharing options...
litmon Posted November 4, 2011 Report Share Posted November 4, 2011 I agree with Melboy - get back your money. I think 1 or 2 month rent is acceptable. Link to comment Share on other sites More sharing options...
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