New tenancy asking for single payment from multiple tenants

edwardmluk

I've just signed up for a new AST with three other people. The agency is now asking for a single payment of all rent (nominate someone to be lead tenant), rather than each of us paying separately. The reason they give is their system can only handle a single payment, however the system is online bank transfers...makes no sense to me.

Are there any legal issues we should be watching out for here? If I'm made lead tenant, am I going to be held accountable for someone else being late with their rent? How about the other tenants paying someone other than the estate agents? Do they lose some legal rights as they're transferring money to another tenant rather than the agency?

Do we have the right to ask that the four of us pay separately?

Thanks,
Ed

thesaint

If the tenancy is a joint tenancy, then you all are responsible for all of the rent.
There is no "share" of the rent in the eyes of the law.

rpc

If you have all signed the same tenancy agreement, then you are all liable jointly and severally anyway.

I'd be more worried about not being the lead tenant and finding that the lead tenant hoarded the rent and did a runner! The rest of the tenants have given up their rent money but would still be liable for it.

What does your contract say? At the end of the day, you only have to pay rent in accordance with the contract. If the contract doesn't bar multiple payments then you are allowed to make multiple payments. It may antagonise the agent though...

ValHaller

edwardmluk wrote: »

Do we have the right to ask that the four of us pay separately?

Of course. Bear in mind you may be refused.

You could just go ahead and make individual payments, and I don't suppose the agency could do anything to stop you apart from give you a S21 notice. They would have no legal grounds to object as far as I am aware.

As your joint tenancy is almost certainly 'joint and several' responsibility, there is no obligation to nominate a lead tenant - you could take turns month by month to be the rent collector.

There are no special legal responsibilities arising from being 'lead tenant'. Remember that Joint and Several responsibility means that any one or all of you can be held responsible for the failure of any other person to meet their responsibilities.

Wywth

edwardmluk wrote: »

I've just signed up for a new AST with three other people. The agency is now asking for a single payment of all rent (nominate someone to be lead tenant), rather than each of us paying separately. The reason they give is their system can only handle a single payment, however the system is online bank transfers...makes no sense to me.

Are there any legal issues we should be watching out for here? If I'm made lead tenant, am I going to be held accountable for someone else being late with their rent? How about the other tenants paying someone other than the estate agents? Do they lose some legal rights as they're transferring money to another tenant rather than the agency?

Do we have the right to ask that the four of us pay separately?

Thanks,
Ed

What does the TA you all signed say about payment? That is what you agreed to.

The EA/LA probably has to pay for their banking transactions as is common with most business accounts. Receiving just one payment means they are not wasting money on extra banking transaction charges.
Also it's a lot easier to reconcile a single amount due rather than hunting amounts paid that may be received on different dates (or not at all)

thelem

Consider setting up a joint bank account with all your names, transfer your individual rents into there and set up a standing order to the agent. This is actually better for you than all paying directly, because if someone isn't paying then you can see immediately, so you can't end up with a nasty surprise if someone doesn't pay for a few months and the landlord doesn't tell the other tenants.

rpc

thelem wrote: »

Consider setting up a joint bank account with all your names,

Eek - you then become financially associated with the other tenants. If one tenant trashes their credit rating, yours will go down the pan too!

G_M

as rpc says, do NOT link yourselves financially.

Legally, so long as the full rent is paid each month, you will have complied with the key tenancy requirement.

Even if the tenancy agreement has a clause requiring 'single payment' there is really nothing the LL/agent could do to enforce it.

Though they could refuse to renew the tenancy when the fixed term ends.

Having said that, there are good reasons why the agent wants a single payment, and do you want to p*ss them off?

Plus, you are ALL liable anyway for ALL the rent.

If one of you collects contributions from the other 3, I'd recommend he then gives those 3 not just a receipt each, but proof he's passed it on to the LL/agent.

Just to keep everyone confidant and trusting ....

BitterAndTwisted

As has been described already having four separate payments come in each month for one tenancy is a PITA for the agent. Plus, it could open up the possibility of them becoming embroiled in a "one hasn't paid" scenario which it really isn't fair to drag them into.

What I suggest is that the lead tenant opens up a new, completely separate bank account in their own name to receive all four rent-payments in and one payment out to the agent. This can also be used to collect and pay utility bills. A joint bank account between the four is very risky and definitely not to be advised for the reasons already explained.

G_M

BitterAndTwisted wrote: »

As has been described already having four separate payments come in each month for one tenancy is a PITA for the agent. Plus, it could open up the possibility of them becoming embroiled in a "one hasn't paid" scenario which it really isn't fair to drag them into.

What I suggest is that the lead tenant opens up a new, completely separate bank account in their own name to receive all four rent-payments in and one payment out to the agent. This can also be used to collect and pay utility bills. A joint bank account between the four is very risky and definitely not to be advised for the reasons already explained.

Again, a good idea, but I stress you need total transparancy.

We do hear of cases here where one joint tenant has been collecting rent, gas/electric contributions etc, but not actually paying the bills.....

BitterAndTwisted

It's quite easy to give total transparency especially when the rent and bill are paid online. Everything can be printed out and distributed to the other three.

But I agree, a joint & several tenancy can be problematic, even between a committed couple never mind extremely close and trusting friends. Sometimes, all it can take is an unforeseen change of circumstances for the whole thing to collapse like a house of cards.