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Rent in Advance question – to protect, or not?
Flashmanchop
Posts: 194 Forumite
Picture the scene – property to let, tenant are first timerenters, on benefits, and have only £200 upon moving in.
As they are going to receive local housing allowance, therent will be paid in arrears as soon as the claim is handled and processed.
Does the £200 they have need protecting as rent in advance?
Over to you!
0
Comments
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What does the tenancy agreement say? rent to be paid in arrears or in advance?
Rent does not need to be protected.
Is a deposit being taken? ie is the £200 a deposit? What does the tenancy agreement say? What does the receipt for the £200 say? If it is a deposit, it needs to be protected.
The fact that rent is to be paid by LHA is irrelevant to the terms of the tenancy.0 -
Yes: Unless you handle it as "rent".
Assuming HB/LHA does not arrive until after 30 days from when they paid you the £200....
Any deposit must be protected within 30 days of them paying it to you: Doesn;t matter what you call it - "advance rent" or "fairy bonus" - see HA 2004 S212(8)
http://www.legislation.gov.uk/ukpga/2004/34/section/212
£200 ain;t much of a deposit for tenants on benefits with, presumably no assets of guarantors,..,.,if it all goes wrong... Did you credit & reference check them??(8) In this Chapter—
....... etc etc etc...
“tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his, arising under or in connection with the tenancy.
What makes you think they will get HB/LHA - did they just tell you or have you seen evidence from council that they are currently in receipt??0 -
There is little or no point credit checking young job seekers in my experience.
Every LHA tenant I offer to help with the completion of paperwork, otherwise, it often never gets done. There is no guarantee they are allowed it. They need a tenancy agreement in place to be eligible, so is chiken and egg, and a risk for any landlord.
My guts have a lot of feelings - and have more often than not served me right.
It was rent in advance as referred to in the agreement, to cover some of the time until a claim gets handled and paid.
I agree it is not much, but often that is all that is available to them.0 -
You'd be surprised what you find out by checking such persons: Lies about where they've been living, CCJs... Clearly many/most are honourable honest persons but...Flashmanchop wrote: »There is little or no point credit checking young job seekers in my experience.
In that case re-read thisIt was rent in advance as referred to in the agreement, to cover some of the time until a claim gets handled and paid....
You are unquestionably holding it as security for obligations of tenant: So it needs protecting within 30 days of being paid to you, or tenant may sue you for up to 3x deposit: & If you fail to do so - or fail to serve PI - any S21 will be invalid...(8) In this Chapter—
....... etc etc etc...
“tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his, arising under or in connection with the tenancy.
Done any training or read any books on how to be a landlord?? I did & then realised what mistakes I'd been making.....
Cheers!0 -
Answer the Qs!
If the TA says rent is payable in arrears, then why is this £200 being taken in advance as rent?
Does the TA mention a deposit?
etc etc0 -
Answer the Qs!
If the TA says rent is payable in arrears, then why is this £200 being taken in advance as rent?
Does the TA mention a deposit?
etc etc
TA ACTUALLY READS - "
1) Payablein advance and due on same day of each week, or Month with the first payment(or proportionate part) is to be made on or before the signing of thisAgreement. A standing order must be set up on signing the Tenancy Agreement topay the rent either weekly or fortnightly.
Deposit is nil.
If they only had £200 - and this is rent in advance, where is the deposit money, and how can I protect it, if it does not exist?
Councils of recent times, because they are so short staffed can, and will take up to 12 weeks to process payments. And then I have to pray they send the payment to me as per guidance, but often do not do so.
I have read plenty of books and been doing it long enough, but am far from knowing everything, or even claiming to. Far from it!0 -
Flashmanchop wrote: »...
Deposit is nil.
If they only had £200 - and this is rent in advance, where is the deposit money, and how can I protect it, if it does not exist?...
Sigh!! Have you read the posts above?? It doesn't matter what it's called - or not called: The £200 meets the definition of HA 2004 S212(8) so it is a deposit:
Where is it?? Well if you don't know what you did with it then I 'umbly suggest you need professional help, and not from a Solicitor or housing expert...0 -
theartfullodger wrote: »Sigh!! Have you read the posts above?? It doesn't matter what it's called - or not called: The £200 meets the definition of HA 2004 S212(8) so it is a deposit:
Where is it?? Well if you don't know what you did with it then I 'umbly suggest you need professional help, and not from a Solicitor or housing expert...
why are you stating it is a deposit?
It is rent in advance no ?0 -
Flashmanchop wrote: »TA ACTUALLY READS - "
1) Payablein advance and due on same day of each week, or Month with the first payment(or proportionate part) is to be made on or before the signing of thisAgreement. A standing order must be set up on signing the Tenancy Agreement topay the rent either weekly or fortnightly.
Make up your mind!As they are ....blah blah.., therent will be paid in arrears as soon as the claim is handled and processed.
If you make post saying rent will be paid in arrears and then say it is payable in advance, don't be surprised if we get p*ssed off.
Do you actually have any idea what you are doing?
The TA says rent is payable in advance. The tenant pays £200 (presumably the rent is more than this though?) towards the rent, but is immediately in arrears.
Presumably the tenant will be permenantly in arrears and never able to pay on time.
* lack of deposit taken - mad
* handing over keys when rent due at commencement has not been fully paid - mad
* lack of comprehension of legal requirements - worrying
* lack of comprehension of basic business practices - worrying
Im sure we'll be seeing more threads/queries from you in the future.0 -
Make up your mind!
If you make post saying rent will be paid in arrears and then say it is payable in advance, don't be surprised if we get p*ssed off.
Do you actually have any idea what you are doing? A reasonable idea yes thanks.
The TA says rent is payable in advance. The tenant pays £200 (presumably the rent is more than this though?) towards the rent, but is immediately in arrears. Correct - If you can find me some tenants whom claim benefits, but have a months rent up front, a full deposit, pass all credit checks, and pay rent on time, please tell me where they are!:D
Presumably the tenant will be permenantly in arrears and never able to pay on time. Not once the council have made a payment for rent, in arrears - hence my query. I perhaps haven't outlined it very well.
* lack of deposit taken - mad - perhaps - risk taken on every LHA tenant
* handing over keys when rent due at commencement has not been fully paid - mad
* lack of comprehension of legal requirements - worrying - I have a pretty good comprehension generally.
* lack of comprehension of basic business practices - worrying - I wouldn't say it was that bad? What points worry you?
Im sure we'll be seeing more threads/queries from you in the future.
Calm down my dear.
I came on here for some guidance, as I was unsure.0
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