Landlord insisting on rent paid in cash?

trrk

I have a landlord who insists on the rent being paid in cash (quite inconvenient for us as the rent is above our daily ATM withdrawel limit). I don't believe for 1 minute that he doesn't have a bank account as he owns multiple properties.

Is he actually doing anything illegal? I guess it is his legal right to ask for the rent in cash if he wants but I assume he must be tax dodging in some way?

theartfullodger

Hmmmnnnnn I'd be very very suspicious... (I'm a Landlord...) and think you are right, he's on the fiddle... unless this is the first month's rent. In that case and cheque might bounce & cash is not uncommon...

In your shoes next time he asks for it give him a cheque in a letter (copy both), preferably in from of witnesses...

If he's doing this cash thing is everything else OK??? Gas Safety certificate?? Landlords insurance?? Has he permission from his lender to rent out??

Do you have his address?? Without it / without an address the rent is not due... (Assuming England & Wales and an AST)

Keep posting & let us know what happens...

Cheers!

Lodger

bryanb

Best to insist on a written receipt on each occasion. If he's a good landlord don't make waves.

N79

trrk wrote: »

I have a landlord who insists on the rent being paid in cash (quite inconvenient for us as the rent is above our daily ATM withdrawel limit). I don't believe for 1 minute that he doesn't have a bank account as he owns multiple properties.

Is he actually doing anything illegal? I guess it is his legal right to ask for the rent in cash if he wants but I assume he must be tax dodging in some way?

He is not doing anything illegal just by demanding cash although it is such an odd and unnecessary request that it does lead one to suspect that they are doing it for nefarious reasons.

What does your tenancy agreement say regarding paying rent? How often is the rent due? This is what the two of you have agreed to. If it specifies cash then really you would need the LL's agreement to change it. If it merely says that the rent is due on x date then so long as you make sure the LL receives cleared funds in time you would be well within your rights to start sending them a cheque (a cheque would need to be received by the LL before the rent due date).

trrk

Thanks everyone for the advice. We've been with him for awhile so this isn't the first rent. I agreed to pay cash despite the inconvenience as I like the house and the location although I've always been suspicious of him since he's so insistent on cash (I've asked to pay by cheque or direct debit but he said no).

The tenency agreement is just a standard one (he didn't write it), from memory it states the date the rent is due but not how it must be paid. His address is on the lease.

I think the Gas Safety certificate is OK as he is signed up with British Gas and they do an inspection each year. I have no idea if he has landlords insurance or if he has permission from his lender to rent out.

Fire_Fox

Are you getting a receipt each time which clearly states what the amount paid is for?

olly300

bryanb wrote: »

Best to insist on a written receipt on each occasion. If he's a good landlord don't make waves.

Sorry a good landlord will not have a problem with a tenant who pays the rent on time giving them a cheque.

bryanb

olly300 wrote: »

Sorry a good landlord will not have a problem with a tenant who pays the rent on time giving them a cheque.

How do you come to that conclusion? Are you assuming there is something wrong/illegal in insisting on cash?

poppysarah

bryanb wrote: »

How do you come to that conclusion? Are you assuming there is something wrong/illegal in insisting on cash?

No it just smells funny.

theartfullodger

bryanb asks...

How do you come to that conclusion? Are you assuming there is something wrong/illegal in insisting on cash?

The huge advantage of a cheque (or SO/DD or Bank transfer) is that there is nice, hard, documented evidence of who paid wot to whom, that you can then present to HMRC (eg - tax return) or the courts (eg - suing tenants for arrears) or whoever. Cash, whilst strictly legal, stinks of someone on the fiddle... but you knew that eh Bryan??? Methinks he doth ask the question too readily... how's the violin???

Cheers!

Lodger

adg1

bryanb wrote: »

How do you come to that conclusion? Are you assuming there is something wrong/illegal in insisting on cash?

My problem with cheques over cash would be the potential for cancelling them/bouncing them etc. Cash is cash is cash - its worth the same everywhere and when its in your hand the tenant can't suddenly stop the cheque leaving you high and dry!

However -

A landlord insisting on cash stinks of dodginess to me. To own houses he surely must have had mortgages, hence a credit history, hence a bank account. I absolutely agree that it leaves no paper trail of who's paid what and when a Lodger says - whats to stop him turning round and saying no rent has ever been paid? With no receipts, theres no proof it has been.

Make sure everything else is in place - deposit protected/gas safety valid/etc and talk to the landlord, insisting that you pay by standing order. I find it very hard to believe that a multiple home owner doesn't have a bank account.