Six momths Up Front and Guarantor

vscared

We are looking to rent a house in the very near future and we went BR at end of july.

Sorry if the answer to this question is obvious, but when a letting agent or landlord asks for six months up front, is this just a deposit and you have to keep paying monthly thereafter, or is this effectively your rent for six months?

Am confused. Any help would be gratefully received.

Richard_S

Hi Vscared,

I'm not sure if all agents work the same but my understanding is that it's six months up front and then you continue to pay on a monthly basis. It is in effect a bloated deposit, which is usually one month, and covers the landlord in the event that a tennant stops paying and the landlord has to take legal action to evict the tennant.

It should be held in a secure account so the money is not at risk in the event of the landlord gatting short of cash.

Richard

Scarlett.1974

In our case, it WAS our rent for 6 months. So, we paid in Jan and then were 'rent free' (so to speak) until July. But we had to use that rent free time to save up the next lot of rent, iyswim, because our contract stated '6 months in advance every 6 months'. We didn't actually have to pay another 6 months in the July, we managed to negotiate and pay 3 instead...... but do be aware of this being a possibly scenario.

Check and double check with your LA as to the exact terms and conditions of your agreement. We thought we could go onto normal monthly payments after the first 6 months and it was a horrible shock to learn this was not the case.

Waspeze

If you have a guarantor you might be able to avoid the 6 months advance...

It was just before I went BR but had numerous defaults and ccj's and knew I'd fail a credit check so asked them not to as i'd fail and they just credit checked my guarantor

savagevixen

Sometimes you have to be a little bit cunning. We could not have paid 6 months up front even if we'd been asked!!! All agents are different and some do not even do a credit check, so you can call an ask first (with a well-prepared reason-bad credit but have guarantor etc). I think it is different for people who have owned a house and had a mortgage who need to rent and for those who were renting and need to move, but at the end of the day bankrupt is bankrupt. I have a brother in London who is very clever and a master of all inventions. (He managed to get backstage at Live8 etc with his own passes...) and he suggested I had a foolproof set up. A guarantor, good personal references and good letting refs. Whilst I appreciate this may not be for all, it would be possible to not mention the house situation, and tell the Estate Agent you are bankrupt but have ref's. It would then be possible to have private rented a house for 6 months/year and provide contact details of someone who could write a letter confirming suitability and that rent has always been paid on time, this along with good ref's and a gurantor should be enough to avoid the 6 months in advance.
We moved 12 months ago and told the agents we were BR. They were fine, we provided ref and guarantor and only paid the normal deposit and 1 months rent. After 6 months we wanted to move again. I contacted lots of local agents and was very upfront and honest. They were all very nice and helpful. The landlord that I had been renting off was a prat and refused to help as he did not want us to move so we had to be creative. We moved 5 months ago and it was all fine, again 1 month deposit and 1 rent.At the end of the day all they need is to reassure themselves and the owner of the property that you are going to be a good tenant. I would only advise this if you are absolutely certain you can pay your rent and will never be late or cause problems, as we have just moved in and paid rent and never had problems. I have never heard anyone I know paying 6 months in advance and it is certainly something that should not have to be repeated. To be honest I contacted @20 agents and none of them specified 6 months in advance so I am sure you can find someone understanding.
Good Luck