6 month Ast with payments spread

fishpond

Hi
Must be due to the weather, but,
I have another tenant with an unusual request (at least to me)
Originally was going on a 6mth with 1 upfront payment (sorry, you are not to be privy to the reasons behind this)

We have now negotiated to a 6 Month Ast with 3 bi-monthly payments.
Each payment to be paid 2 weeks before the commencement of the next 2 month period.
Any thoughts/advice?

Pixie5740

Where do you find these tenants?


Why can't the tenant just pay you monthly? If they receive some kind of income where the receive lump sums every other month then they should be capable of managing their money so that rent is paid monthly.


If you're happy to receive payments every 2 months then I don't see what's wrong with it although it does seem a little odd.

jjlandlord

What's the benefit v. 'normal' monthly payments?

fishpond

The advantage for me is (I think):-
I can issue a s8 upon 1 missed payment during the 6 month ast, instead of issuing an s21 with less than 2 months of the contract to run (which I would do as a back up anyway.
Aids me in getting them out a little quicker if they should default.
(they do not appear to be the most careful people, when it comes to money)
Does this make sense?
Or am I opening myself up to problems ie:- a part rental payment is made, but not the full 2 months?

Pixie5740

fishpond wrote: »

The advantage for me is (I think):-
I can issue a s8 upon 1 missed payment during the 6 month ast, instead of issuing an s21 with less than 2 months of the contract to run (which I would do as a back up anyway.
Aids me in getting them out a little quicker if they should default.
(they do not appear to be the most careful people, when it comes to money)
Does this make sense?
Or am I opening myself up to problems ie:- a part rental payment is made, but not the full 2 months?

If that's your gut feeling don't rent to them, find other tenants that give you a warm fuzzy feeling about paying rent on time.

jjlandlord

fishpond wrote: »

I can issue a s8 upon 1 missed payment during the 6 month ast, instead of issuing an s21 with less than 2 months of the contract to run

You can use ground 8 if 2 months rent is owed and rent is payable monthly.
Here you're proposing rent payable bi-monthly.

sandsni

Whose idea was the initial offer of an upfront 6 month payment? Yours or theirs? If it was theirs and they're already changing their plans, how long do you think it might be before they try to "renegotiate" another change in their payment schedule?


If you already know they're not good at managing their money (how you know that is your own business) then I think you could be storing up problems for yourself by letting them through the door. Apart from the rent, will they be able to manage to keep your property in decent nick, or will they skimp on the household maintenance that costs money (like heating, leaving you with a cold property full of condensation and mold).


Even if you can issue the notices quicker, there's no guarantee you'll get them out any quicker.

fishpond

jjlandlord wrote: »

You can use ground 8 if 2 months rent is owed and rent is payable monthly.
Here you're proposing rent payable bi-monthly.

Yes, but as the rent is being paid upfront in advance before the due date of the 1st months rent and 2 months at a go, I think I would gain at least a month on an s8. (I think)

fishpond

Pixie5740 wrote: »

If that's your gut feeling don't rent to them, find other tenants that give you a warm fuzzy feeling about paying rent on time.

They have been there 12 months already, and have put up with a lot of house building next to them.
They are quiet, and upon inspections they are keeping a clean& tidy house, with few complaints coming my way really only a few niggles which have been sorted.

Note- the only warm fuzzy feeling I get is :beer:

fishpond

sandsni wrote: »

Whose idea was the initial offer of an upfront 6 month payment? Yours or theirs? If it was theirs and they're already changing their plans, how long do you think it might be before they try to "renegotiate" another change in their payment schedule?


If you already know they're not good at managing their money (how you know that is your own business) then I think you could be storing up problems for yourself by letting them through the door. Apart from the rent, will they be able to manage to keep your property in decent nick, or will they skimp on the household maintenance that costs money (like heating, leaving you with a cold property full of condensation and mold).


Even if you can issue the notices quicker, there's no guarantee you'll get them out any quicker.

Should have said they have been in residence for 12 months and so far I am reasonably impressed with the condition.

theartfullodger

fishpond wrote: »

...Each payment to be paid 2 weeks before the commencement of the next 2 month period.
Any thoughts/advice?

So each payment of 2 months-rent is paid 2 weeks early: Reading the definition of a deposit(**) that makes it a deposit for those 2 weeks: So unless you protect each payment ...
a) Any s21 will be invalid...
b) Tenant can sue, for up to6 years, for up to 3xthat 2-month-rent "deposit". That altogether will make a very large amount of ££££££ either up to 12 or 18 months rent the judge can award....

(**) See Housing Act 212(8)
http://www.legislation.gov.uk/ukpga/2004/34/section/212

“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 clown drafted that tenancy?? How much did he charge you for that quality piece of legal advice??