LL's - if 6 months rent paid in advance, would you reduce the rent?

Better_Days

Hope to exchange this week and go into rented while we find somewhere we like to buy.

Have found a suitable rental. Nothing special, bit tatty, but it will do for 6 months or so, especially as the LL will allow pets. LA indicated when we looked round that the LL would consider a rent reduction if we paid 6 months in advance. (We are lucky that we can do this as we will have the capital from the sale of our house) Property has been on RM for just under 2 months.

We are going for a second look at the property tomorrow and I was wondering what level of reduction the LL is likely to consider. I know this is a bit of 'how long is a bit of string?' but it would be helpful if LL's could give me an idea of what they think would be reasonable in the circs. Advertised rent is £750 a month and I was thinking of suggesting a reduction of say 5%, which would take the rent down to £712 a month.

HappyMJ

No. You might get a tiny discount but much more than nothing then you are lucky.

Let's say rent due 1st Jan you pay 6 months someone else pays monthly so you are paying an extra 5 months in advance. This money is then put into a current account and drawn on each month to pay the mortgage (depending on the mortgage it might be offset). Let's say this money earns 1.6% interest (a reasonable rate for a call account-rather than fixed term). The total interest would then be 0.4% on your 6 months of rent which isn't very much.

Better_Days

Thanks HappyMJ for your thoughts on this.

This is a first time LL, with the LA undertaking full management. Reading between the lines I suspect that the LA made the suggestion because:
1) She knows we can pay the 6 months up front
2) It provides some security for the new LL

I wouldn't have considered this option had not the LA mentioned the possibility. However, I don't want to alienate the LL by suggesting an unrealistic reduction.

theartfullodger

No. I'd worry you were going to run a cannabis farm or brothel: - or is there something you are trying to hide..


Boring, conventional tenants with good landlord references & credit-checks are more attractive. And with 1/2% interest it would be worth less that 0.2%...m


Cheers! Hope it works out

Tim_Bisley

On our current rental we paid 6 months up front and asked them to put wooden floor in the hall and reception room to replace the old carpets. They wouldn't have done this if we had just paid as normal.

If nothing else it make you look more attractive as an applicant.

Better_Days

theartfullodger wrote: »

No. I'd worry you were going to run a cannabis farm or brothel

:rotfl::rotfl:
Well, I suppose it would provide a good headline for our local paper, not a lot happens round here in this sleepy corner of the country.

Thanks also for your experience Tim, shows that 6 months rent in advance can be and advantage in some cases.

What I might do is knock the ball back into the LA court (as she made the suggestion in the first place) and ask what reduction the LL would offer for 6 months rent in advance.

Mr_Pitiful

Tim_Bisley wrote: »

On our current rental we paid 6 months up front and asked them to put wooden floor in the hall and reception room to replace the old carpets. They wouldn't have done this if we had just paid as normal.

If nothing else it make you look more attractive as an applicant.

Be aware that the opposite can also apply. There's less incentive for a landlord to carry out works when they've already got hold of your money.

Also it is not uncommon for landlords to rent out their properties when they are being repossessed for mortgage arrears, sometimes even after possession has been awarded. Should that happen you could find yourself being evicted by the lender whom, if did not consent to the tenancy do not have to honour it. In that scenario you would get a maximum of 2 months notice and would have to take action against your landlord for any loss.

Wobblydeb

I did it and got £1,250 reduced to £1,100. Probably had more to do with being able to move in quickly than the 6 months up front though.

I never did get around to planting any cannabis though

MushyPeas

As a tenant having to pay 6 months in advance I find it a bit of an inconvenience.

As a landlord I don't mind either way But (because the rent on the property is low at the moment anyway to get tenants in), unfortunately I wouldn't be able to reduce the rent for the tenant.

somethingcorporate

If the AST is for a minimum of 6 months it does not provide a massive amount of additional security for the landlord. Still, I'd rather it be in my pocket as the LL than not!

johnmcga

I can only comment from a tenant's perspective, but I wouldn't hand over six months' rent in advance without a hefty discount. Like 10%+.

There are far too many unknowns with a new landlord and letting agent. Will they keep up maintenance and provide good service? If something goes seriously wrong (I don't know, say the place floods or the roof caves in or something equally unlikely) then will I get my money back?

The other thing to bear in mind is whether it's normal to negotiate on rent anyway in your part of the world. If so, you may be able to negotiate a similar discount without paying anything up front.

For instance, we got a 2.7% discount on the advertised rent for our current place just by asking the agent to put our offer to the landlord. With hindsight, and knowing the landlord better now, I think we should have tried for more.