1 month rent in advance Noob question

jennyjen

I'm having far too much trouble trying to understand the concept of "1 month in advance" for rent.

Nothing has been signed, but I have tentatively agreed to move in to a rental property on September 1st. There is a deposit and 1 month's rent in advance.

What I'm confused about is my flat mates seem to think that we're signing the papers in early August and this is when the rent will be taken.

As a noob I assumed 1 month rent in advance means around move-in date, we pay that rent, for advance of the first month living there.

They seem to think that some arbitrary day in August we pay 1 rent, and then September 1st when we move in, we pay the next round of rent. Isn't that 2 months in advance?

I can pay it, I just don't really understand it.

Pixie5740

It's your flat mates who are confused. You usually pay the first months rent when you sign the tenancy agreement which is often when you get the keys too. So I expect you'll be paying and signing on or just before 1st September. That payment will cover your rent for the period 1st September to 30th September. Then your next payment will be 1st October. That's you paying rent in advance.

jennyjen

Pixie5740 wrote: »

It's your flat mates who are confused. You usually pay the first months rent when you sign the tenancy agreement which is often when you get the keys too. So I expect you'll be paying and signing on or just before 1st September. That payment will cover your rent for the period 1st September to 30th September. Then your next payment will be 1st October. That's you paying rent in advance.

This makes logical sense, but they say we are signing things next week. I don't know the terms, but would this be like a "letter of intent" where the house is taken off the market, and we provide references and personal details etc? And then later the actual tenancy agreement is signed for the move in date?

Pixie5740

If you haven't been referenced I'd be very surprised if you were signing a tenancy agreement just yet. It's more likely that you'll be asked to pay referencing fees and a holding deposit.

davidmcn

I think I have read of landlords expecting the initial deposit/rent paid way in advance of the entry date. But even if they did, the next payment of rent wouldn't be due until 1 October.

PasturesNew

It is possible you'll be asked for the 1-30 September rent at some arbitrary date in August ... just because they have you over a barrel. That'll just be "because they can" because you don't want to lose it ....

However, the second payment would not be due until 1 October for 1-31 October.

jennyjen

Thanks guys this is all making sense now.

G_M

* your tenancy start date is 1st September?
* so your '1 month in advance' will cover the 1st - 30th sept
* it will be paid on or before 1st september
* it is common for it to be paid when the tenancy agreement is signed
* signing may take place on move-in day (1st Sept). The disadvantage of this is that no contract exists till then, so either side could change their mind
* so signing may well happen earlier eg "some arbitrary day in August". That way you know for certain the place will be yours in September
* it is likely that at the same time you will need to pay a security deposit (though you could ask to delay this payment till 1st Sept - the landlord may or may not agree)
* your deposit should be registered in a scheme within 30 days of payment (not 30 days of the tenancy start date)

See also

* Deposits: payment, protection and return