Paying 12 months rent upfront

vyvyan_2

I'm looking to move from my rental property and downsize to save money on rent and utilities etc. I am not working at the moment but job-hunting.

I can pay 12 months rent upfront plus the deposit and admin fees.

1. Would they still need to credit reference check on me if I can prove the funds are available? My credit history is fine but as I'm not working at the moment there is no employer to contact.

2. Do you think the monthly rent would be negotiable if it's a certainty of 12 months being paid upfront or is it too much of a tough market?

3. After 12 months would they expect future renewals to be paid 12 months up front upon each renewal?

GAH

Hi OP,

in answer to your questions

1. It depends on the Agent/Landlord. Even if paying upfront, some will start want a basic credit check done.

2. Again it would depend on the landlord. The market is very competitive with lots of tenants looking, but the lure of 12 months up front may secure a discount.

3. Again this would need to be a point to be discussed with the landlord/agent, each LL is different, some maybe happy for you to pay monthly or if you aren't working they may want adavanced rent again, this being if you fix the tenancy. If the tenancy becomes periodic after the initial terms you will only pay monthly.

poppy10_2

There was a similar post yesterday. It depends on the LL/LA. When I got my first rental place I couldn't pass the credit check (no employment/credit history) but the LL was happy with me paying 6 months rent up front. I managed to negotiate a little bit off the rent (I think it was £25/month) for paying the lump sum up front. In answer to your third question, i think that's unlikely, once you've been there a year they should be happy trusting you to pay monthly again.

ruggedtoast

I wouldnt pay more than 6 months in advance personally.

G_M

Beware of some risks if paying 12 months upfront.

1) Landlord does not have mortgage lender's permission to let property. Defaults on mortgage. Banks repossesses. You are evicted and will not get your money back.

2) Needs to be VERY clear this is a monthly tenancy, with 12, monthly payments being made in advance. NOT a yearly tenancy with one advance payment. Otherwise you might need to give a year's notice.

As others have said, some LL will accept upfront payments instead of credit vetting, others won't. Same with discount on rent. Ask, and find out!

franklee

I'd do no more than six months. Or what about a rolling three months (or six months), that is you pay three months upfront, then pay each month staying three months ahead and the last three months pay nothing. It lessens the risk for the LL whist not leaving you at risk of being booted out before the fixed term is up. If you are paying a lot in advance then I'd suggest you ask for written proof of consent to let and that the mortgage is paid to date.

klolav

We are looking to pay 6 months upfront, and the LL are using a lettings management. We have still had to pay for credit checks. Until this house has gone (which should be completed in couple wks) then we have plenty of debt etc showing up on our credit files. I'm still waiting to hear back about that. Most letting agents we spoke to thought it was a massive bonus being able to pay 6 mths upfront (by the way we will have the money to pay 12 mths upfront but decided against it-risk etc).
We did negotiate on price and got a small discount per month.
After the initial 6 mths, they have already said they will be looking for another 6 mth contract, at which time we may well pay upfront again.
Hope that helps, as we are in a similar position.
Good luck