paying rent in advance

22bear

this is probably a silly question but I thought I'd better check anyway....

...I'm going to see a flat for rent (private landlord who will credit check me...cripes!), so I am going to be upfront and tell him everything...I've checked my credit file and I've got plenty of defaults on 4 accounts from when I lost my job and couldn't make payments), but no CCJs showing..and I expect to be declared bankrupt by HMRC in the next 2 months

Of course to offset this and help plead my case, I am going to offer to pay 6 months rent (plus deposit) upfront, in advance....my question is: does this mean that this payment covers my future rent for this 6 month period, (i.e. I wont have to pay any rent until Jan/Feb next year) or else is it like a sort of extra deposit and I will still have to pay the rent every month for this period as well as this 6months advance payment...which would be returned to me at the end of tenancy or used to cover monthly rent on notice to quit by landlord?

...sorry if this sounds blinking obvious! I think I know the answer but I thought it best to check before I make my offer!

Ta much!

caringa

As a landlord, if a prospective tenant wishes to pay me 6 months rent in advance in addition to the deposit, then I would not expect to receive rent again until 6 months time,at which time I would decide whether to renew the agreement.

I imagine you will be offered a 6 months shorthold tenancy agreement and after that date, the landlord will decide, if you wish to be considered, whether he wants to renew the agreement.

Personally I would be happy with this situation although other landlords may not! Hope this helps clarify the situation.

22bear

Thanks Caringa...that's what I thought! Now just got to hope that they will accept me, fingers and toes crossed!

caringa

22bear wrote: »

Thanks Caringa...that's what I thought! Now just got to hope that they will accept me, fingers and toes crossed!

Well I cant see why not! These days, from a landlords point of view, its always good to have the rent in advance and in the bank, rather than worry each month that you might have some problem and not be paid. Good luck!!

Catherine_Johnson_2

Well, I hope you get the flat you want. Personally I wouldn't take on a tenant who has 'plenty of defaults' on money they owe and expects to be made bankrupt by HMRC some time soon.

6 months rent up front is fine, but for me that wouldn't take away from the hassle of getting someone evicted from my property in 6 months time when they can't or wont pay the rent. I'm not saying that's you but, unfortunately, your history of keeping up payments would go against you.

Do you have someone with a good credit record who would be willing to stand as guarantor for you? I would consider that along with the 6 months rent in advance as a prospective LL.

PippaGirl_2

22bear, yes some landlords will take the whole tenancy rent in advance if there are things on the credit report they don't like.

BUT, and it is a big but, your money is then handed over and you can be evicted and you've lost your money. For instance, if the landlord is behind with their mortgage and the property gets repossessed you can be evicted by the mortgage company and as the law stands there is no legal way of you getting your money back even through the courts. If you landlord goes BR, even if they haven't acrued arrears on the mortgage, the money you've already paid is 'lost' and the OR would wish to realise the asset you are living it. There are other scenarios than mean you lose your money and do not have the home you paid for, I saw a programme on this a while ago and the programme maker was saying that the law needs to be changed so that letting agencies who accept this kind of deal, either hold the money themselves and pay it monthly to the landlord so if the landlord defaults the tenant gets the remainder of their money back or the letting agent is responsible for refunding the tenant if the deal goes pear shaped.
I'm only saying, just so you realise that by paying the 6 months or whatever, does not guarantee you will get what you paid for or your money back.

22bear

PippaGirl wrote: »

22bear, yes some landlords will take the whole tenancy rent in advance if there are things on the credit report they don't like.

BUT, and it is a big but, your money is then handed over and you can be evicted and you've lost your money. For instance, if the landlord is behind with their mortgage and the property gets repossessed you can be evicted by the mortgage company and as the law stands there is no legal way of you getting your money back even through the courts. If you landlord goes BR, even if they haven't acrued arrears on the mortgage, the money you've already paid is 'lost' and the OR would wish to realise the asset you are living it. There are other scenarios than mean you lose your money and do not have the home you paid for, I saw a programme on this a while ago and the programme maker was saying that the law needs to be changed so that letting agencies who accept this kind of deal, either hold the money themselves and pay it monthly to the landlord so if the landlord defaults the tenant gets the remainder of their money back or the letting agent is responsible for refunding the tenant if the deal goes pear shaped.
I'm only saying, just so you realise that by paying the 6 months or whatever, does not guarantee you will get what you paid for or your money back.

Yes, I know this but really, what other option do folk in our position have but to offer rent in advance...it's the only bargaining strategy we've got left to us!

But of course, just as this potential LL will "risk-assess" me, so I will them before parting with any cash...in this particular situation, it is not through a letting agency, its a private individual who, thus far has been very straightforward in our email exchanges which they have sent via their works computer which features their job position, signature and company..which I've checked them out on Linkedin and its all kosher, they are who and what they say they are (in actual fact, they are a senior financial consultant with a blue chip company in London, which, let's face it...will either work in my favour...or else not!! At least they will be totally clued up on what bankruptcy is all about!!:rotfl:....maybe they'll give me a break, particularyl if I'm completely upfront with them as I plan to be..

22bear

Catherine_Johnson wrote: »

Well, I hope you get the flat you want. Personally I wouldn't take on a tenant who has 'plenty of defaults' on money they owe and expects to be made bankrupt by HMRC some time soon.

6 months rent up front is fine, but for me that wouldn't take away from the hassle of getting someone evicted from my property in 6 months time when they can't or wont pay the rent. I'm not saying that's you but, unfortunately, your history of keeping up payments would go against you.

Do you have someone with a good credit record who would be willing to stand as guarantor for you? I would consider that along with the 6 months rent in advance as a prospective LL.

Well, just as well I'm not seeking to rent from you then, isn't it?! Hopefully they wont operate a "blanket ban" like you would and instead will take my own personal circumstances into account ("plenty of defaults" and income tax owing from when I had to give up self-employment due to suffering a major stroke followed by 18 month rehabilitation...which could happen to anyone really, including you and yours...but thankfully I've recovered well and am back at work now working for the NHS...creditors have been very patient in the meantime but bankruptcy is realistically the only way for me to make a fresh start due to the fact that my earning potential post-stroke is considerably less than before....and naturally, I will be explaining all this to any prospective LL)....and yes, I can provide a guarantor (but as a last resort I would hope)...and of course, I can provide exemplary references both from my current landlord (some 20 months of rent payments never missed and always on time) and also a great work reference too as well as my current professional registration details...which hopefully will go some way to help plead my case and credibility too....and who knows? Maybe they won't be as uptight as you about renting to me...

....I can but try!

By the way, it would be actually nice to hear from some other folk who have managed to rent in similar circumstances to me and have found willing LLs and have overcome the challanges that our situations presents...that would be much more useful to me than other folks, pretty unconstuctive, opinions of whether they would accept me as a tenant or not....after all, if there were no LL who would take on people in my situation, then there would sure be a alot more homeless bankrupt people around....in any event, I am confident that I will find a place in the end!

PippaGirl_2

22bear, I'm sorry if you felt my comments were unconstructive. I was aware that people had fallen victim to loss of home/rent in the circumstances you describe so was wanting to make you aware it was a possibility.

I wish you well and I will leave it there.

22bear

PippaGirl wrote: »

22bear, I'm sorry if you felt my comments were unconstructive. I was aware that people had fallen victim to loss of home/rent in the circumstances you describe so was wanting to make you aware it was a possibility.

I wish you well and I will leave it there.

It wasn't your post that I was referring to, Pippa...it was the other who quoted the words of my OP back to me, while telling me that she wouldn't rent to me what with my present circumstances...I mean, jog on.. please! Nobody is more aware of my current circumstances and the challenges that it poses for trying to rent than I am...I really don't need someone to give such an unhelpful, completely pointless personal opinion, it bears no relation to what I asked in my OP in any case!

Maizy

22bear

Do you know that you definitely need to offer rent up front like this??? We thought exactly the same and went through a high street agent, had lots of defaults etc, mortgage court order, took the chance and it still got accepted. Had it been declined we would then have to look at other areas of payment. On the forms, we just mentioned we had some defaults hence having to move to lower outgoings. They obviously take all factors into account, not just the credit check. We went BR two months later and haven't heard a thing from the agent about this and are 9 months into the agreement.

Will the fact you are paying up front affect you when doing your SOA i.e. you have already paid the rent so will the OR take the money from your income???? Pretty sure they wont allow you to save the income for the next 6 months rent although I could be very wrong. Just a thought.

I wish you well, I know how difficult this really is so I've every empathy with you. xxxxxx