Renting; Paying off a few months upfront..

Spacepig

..Evening guys.

If I was to rent a £600 PCM property on a six month contract (which is £3600 for six months) but paid off 2 months in advance, would the agents now see that as a £2400 contract effectively making the payments £400 PCM? (obviously payments would still be £600 but only 4 left to pay)

What I'm trying to get at here is I don't have the x30 rent/salary for £600 PCM but had savings to pay off a few months in advance, would this effectively qualify me for £400 a month should that be my x30/salary?

I'm confusing myself a bit. Hehe.


Cheers.

da_rule

Couldn't you just show the agent proof of savings?

Mind_the_Gap

You could make the offer, but the agent/LL is under no obligation to accept it.

The problem for them is that if you cannot afford £600 pcm after the fixed term expires, they could be out of pocket while they go through the lengthy process of evicting you.

Spacepig

da_rule wrote: »

Couldn't you just show the agent proof of savings?

I could yes, which would bring me onto another point. Savings and lower income, does this make a big difference?

But back to the original question, does paying of X amount upfront re-calculate the tenancy?

Mind_the_Gap wrote: »

You could make the offer, but the agent/LL is under no obligation to accept it.

The problem for them is that if you cannot afford £600 pcm after the fixed term expires, they could be out of pocket while they go through the lengthy process of evicting you.

This is where I get a bit confused. I thought their only concern would be the tenant affording the contract length and not after, only if they wished to renew.

[Deleted User]

You're grossly over complicating the problem, your desired outcome would not be achieved with this plan because the salary multiplier is a factor over the long term, not short term and paying an extra month up front would simple reduce the balance, not the rental amount.

A lot of letting agents (assuming it isn't a large national chain operated by robots with no flexibility) are understanding of an individuals circumstance, instead of trying to solve the problem yourself with a complicated "solution", approach the agent with your problem and let them come up with a solution for you, they will know their policies far better than you.

1. You would like to rent a property for £600 PCM
2. You do not have the required £18,000 salary
3. However you do have the budget to afford the rent (show proof of your outgoings)
4. And you have significant savings (show proof of your savings)

That said the salary multiplier isn't just some arbitrary amount thought up to frustrate tenants, if you're not earning enough to meet the qualifying income level it's a very good sign that you're making a potentially significant financial mistake. Housing costs should never be more than 35% of your take home unless absolutely necessary. Reconsider if you can.

Spacepig wrote: »

This is where I get a bit confused. I thought their only concern would be the tenant affording the contract length and not after, only if they wished to renew.

Evictions take anywhere from 3 to 6 months (and it can be longer!). A tenancy doesn't have to be renewed, it automatically continues on a periodic tenancy.

G_M

If the tenancy states the rent is £600 paid monthly in advance, then that is what the rent is.

sometimes LLs/agents request an initial higher rent payment (up to 6 months in advance) where an applicant is higher risk (credit issues etc), but this does not alter the monthly rent.

It does introduce another legal issue: demanding 6 months upfront (eg a single payment of £3600) risks creating a 6 monthly tenancy period, which could have a significant effect on any subsequent periodic tenany....

Spacepig

citricsquid wrote: »

You're grossly over complicating the problem, your desired outcome would not be achieved with this plan because the salary multiplier is a factor over the long term, not short term and paying an extra month up front would simple reduce the balance, not the rental amount.

A lot of letting agents (assuming it isn't a large national chain operated by robots with no flexibility) are understanding of an individuals circumstance, instead of trying to solve the problem yourself with a complicated "solution", approach the agent with your problem and let them come up with a solution for you, they will know their policies far better than you.

1. You would like to rent a property for £600 PCM
2. You do not have the required £18,000 salary
3. However you do have the budget to afford the rent (show proof of your outgoings)
4. And you have significant savings (show proof of your savings)

That said the salary multiplier isn't just some arbitrary amount thought up to frustrate tenants, if you're not earning enough to meet the qualifying income level it's a very good sign that you're making a potentially significant financial mistake. Housing costs should never be more than 35% of your take home unless absolutely necessary. Reconsider if you can.



Evictions take anywhere from 3 to 6 months (and it can be longer!). A tenancy doesn't have to be renewed, it automatically continues on a periodic tenancy.

Thanks, I do tend to over complicate things.

Sigh, the sacrifices we make to move out (again):p. I had to move back in with mother but as she lives an extra 30 miles, this adds another £100 a month, plus her rent I pay. If I'm struggling here I'd rather struggle in my own place and be slightly better off.

Spacepig

G_M wrote: »

If the tenancy states the rent is £600 paid monthly in advance, then that is what the rent is.

sometimes LLs/agents request an initial higher rent payment (up to 6 months in advance) where an applicant is higher risk (credit issues etc), but this does not alter the monthly rent.

It does introduce another legal issue: demanding 6 months upfront (eg a single payment of £3600) risks creating a 6 monthly tenancy period, which could have a significant effect on any subsequent periodic tenany....

Thank you!

bernsteingirl

I don't know the answer to your question, but I live in an area with letting agents insisting on the same level of income as you mention. Before we moved here, our income didn't match this initially, and the letting agent said we could only rent our place with a full YEAR's rent paid in advance - by this time we'd already paid a huge admin fee and hadn't been informed about any of these requirements! (Luckily I got a new job just in time, so we didn't have to pay a huge advance)