Paying 12 months rent up-front

nervousmother

Robert_Sterling wrote: »

What if the letting agent goes bankrupt?

I know not all LA's are the same ours has 3 seperate bank accounts, client deposit and agency. Deposit account obv holds the deposits and the client account holds all other monies that done belong to our agency.
I would make sure a reputable agency was used in the first place.

zaphod_beeblebrox_2

We're renting at the moment (cash in bank until the right moment)

I was made redundant [at the time] so [obviously] couldn’t show any proof of income. We were advised by several agents that the 'norm' is 6 months cash in advance, then monthly there onwards

Where the money went, I didn’t care because either one of them could have folded (landlord or agent) and I could prove that I’d paid

So far we have had no problems

From April 6th onwards, by law you have to be given 7 weeks notice

I wouldn’t worry about it too much, albeit I would not pay 12 months up-front, pay 6 months, else walk away, and most agents I’ve spoken to are happy with this arrangement

Piggles12345

m_13 wrote: »

I don't really understand how she is different from any other student other than she wishes to rent a whole property (flat?) rather than part of a student property.

Where in the country is she? What subject is she doing her PhD in?

There must be other options! When my sister was doing her Masters in a health related subject she lived in a lovely shared flat in the nurses' home. She isn't a nurse. She had her own furnished room and shared a kitchen and lounge.

It's a house that she wants to rent and, yes, she wants to rent the whole thing out. I guess she is not really different from any other student, but the house is not being offered as a student let and the agency don't deal in student properties.

I was also under the impression that most letting agents ask for tenants to earn around 3 times the monthly rent, and if they earn less than this would need to have a guarantor. In this case, she earns nothing and has no-one to be a guarantor.

She also doesn't want to rent a room or flat in student accommodation as they are generally furnished and she needs unfurnished and she has become accustomed to living alone!

She is doing a PhD in sociology in Leeds.

Piggles12345

The landlord for the property has agreed that she can pay 12-months up front to the letting agent. The agent will pay 6 months straight away to the landlord and hold 6 months back. This next payment will then be paid 6 months into the tenancy*.

Is there any way in which my friend can take out some insurance on this money? Although she isn't paying the 12 months up-front to the landlord, she could still lose a maximum of 6 months rent if the landlord goes bankrupt.

Again, any help is hugely appreciated.

*He has stated that this is the only way in which he will accept her as a tenant because of her lack of income.

N79

Piggles12345 wrote: »

The landlord for the property has agreed that she can pay 12-months up front to the letting agent. The agent will pay 6 months straight away to the landlord and hold 6 months back. This next payment will then be paid 6 months into the tenancy*.

Is there any way in which my friend can take out some insurance on this money? Although she isn't paying the 12 months up-front to the landlord, she could still lose a maximum of 6 months rent if the landlord goes bankrupt.

No - you need to understand that the agent is the LL's agent and has no contractual relationship with the T for the money.

Piggles12345

N79 wrote: »

No - you need to understand that the agent is the LL's agent and has no contractual relationship with the T for the money.

So what are you saying, that the agents are lying and will not keep 6 months back?