House Rent Payment in Cash

alienuk

Hi there,
I have been paying my rent via standing order to my land-lords business account. Today he contacted me to let me know that he intend to increase the rent and given an option that, if I pay the rent in cash then he would possibly keep the rent rise to minimum. I am not sure what would be the impact/consequence if I pay my rent via cash payment which against my current arrangement (standing order).

Should I say 'no' to him and continue the payment via Standing Order? or is it OK to pay via cash?(with a written rent receipt from him?) Please advise your views/thoughts

csgohan4

Smells like tax avoidance to me. Up to you as the options are clear.

alienuk

will it have any impact on my credit score or any future mortage application, etc.... if i pay the rent as cash

Pixie5740

Smells more like tax evasion.

There's not a huge amount of difference to you. Personally, I think paying in cash is more of a PITA because you have to remember to take the money out (what about Christmas, holidays and other times you might be away?) and then somehow physically get the money to your landlord. Is he planning on coming round to your home every time rent is due or will you have to go to him?

Pixie5740

alienuk wrote: »

will it have any impact on my credit score or any future mortage application, etc.... if i pay the rent as cash

Paying your rent has no impact on your credit history whatsoever.

pmlindyloo

Ask the landlord to put the options in writing, including any possibility of a rent increase and how much this would be.

As regards the rent increase it would be useful to know when your tenancy agreement began, what the fixed term (if any it is) and whether you are in Scotland or England/Wales just so that someone can check whether the LL can in fact increase your rent and the procedure (if any) they have to follow.

marksoton

alienuk wrote: »

Today he contacted me to let me know that he intend to increase the rent and given an option that, if I pay the rent in cash then he would possibly keep the rent rise to minimum.

Tax evasion aside i'd still tell him to foxtrot oscar.

I wouldn't want such an underhand LL regardless of their motive for cash payment.

csgohan4

marksoton wrote: »

Tax evasion aside i'd still tell him to foxtrot oscar.

I wouldn't want such an underhand LL regardless of their motive for cash payment.

He might be the kind of LL to skimp on repairs too

marksoton

csgohan4 wrote: »

He might be the kind of LL to skimp on repairs too

I'd put money on it....

alienuk

Thanks for your thoughts, Just to let you all know he has been a great landlord and I've been living in his property for more than 2 years. He owns all the flats in the property and one of tenant who has vacated recently used to pay in cash. So there goes the explanation as to why he is asking me to pay in cash.
All I want to know how do i cover myself so that 6 months down the line he wouldn't say that i'm a rent defaulter.

csgohan4

alienuk wrote: »

Thanks for your thoughts, Just to let you all know he has been a great landlord and I've been living in his property for more than 2 years. He owns all the flats in the property and one of tenant who has vacated recently used to pay in cash. So there goes the explanation as to why he is asking me to pay in cash.
All I want to know how do i cover myself so that 6 months down the line he wouldn't say that i'm a rent defaulter.

You have leverage on him remember. He wishes to defraud the HMRC potentially. But you could try and get things in writing if possible