6 month's rent up front offered - good or suspicious?

bluewater

The letting agent is bringing prospective tenants to look at the house on Monday. I asked for some more details about them and the agent said they are willing to pay 6 months in advance. I have a recollection that this offer sometimes raises alarm bells but can't remember why. I think I'd prefer a monthly standing order anyway.

Any thoughts?

JuicyJesus

It sounds like foreign students, who by their nature won't have a guarantor here.

Margot123

I had one of my tenants do this, and then they reverted to paying monthly on a rolling contract.

They stayed over 2 years, and I never had an issue apart from them having a small dog that I would have agreed to anyway.

They were such good tenants that I allowed them 2 weeks notice rather than the usual 4, just to help them with their house purchase/move.

However, I have heard of properties being rented in this way so that they can be sublet, used as brothels, cannabis factories etc.

Like all tenancies, the landlord has a risk to take. Just vet them thoroughly, whoever they are and however they are paying.

[Deleted User]

It can be suspicious as occasionally this is found with people who use the property to grow drugs.., but this is by no means a certainty. I would not rely purely on credit checks, I would also use social media (even if a foreign student), references etc to check any tenant out. Give them a six month tenancy rather than a year and renew it after an inspection. Be aware though, if they do turn out to be a nightmare it could take several months after the end of the tenancy to get them evicted. This is not because they have paid 6 months upfront, this is just how the legal system works.

Comms69

In short paying 6 months upfront is not in itself an issue.


As mentioned students often do so. Self employed people do as well. However yes gangs do this too.


At the end of the day you take a risk any time you let.

TBagpuss

It may also be someone who has no recent references - for instance, because they have just split up having been living with a partner but not on the tenancy, or having moved out of or sold a jointly owned property.
I've seen it where there was a deal that one partner was paying the other's rent up front to facilitate their moving out.

Often it will be that someone has poor or no references, or no guarantor.

So it's sensible to make a few further enquiries as to why they are making the proposal, before you commit, bit it doesn't automatically mean that there is a problem.

theartfullodger

It is anecdotally a red-flag for brothels or cannabis farms.



There are also risks that the "6 months up front" might be actually a deposit, have required protection,so any s21 invalid (!) and tenant entitled to sue for up to 3x6-months-up-front (!!!!)
https://www.!!!!!!!!!!!!!!!!!!!!/magazines/advanced-rent-legal-update/


(Property Hawk btw.. I guess MSE has an issue with them...)

PokerPlayer111

Had to pay 6 months upfront myself on two diffferent occasions due to being self employed. Other times was still self employed but they just wanted proof of money/cash flows.

JuicyJesus

theartfullodger wrote: »

It is anecdotally a red-flag for brothels or cannabis farms.

The thing with that is you retain the right to inspect the property given reasonable notice. OP doesn't have to completely ignore the property after being given six months rent in advance!

My girlfriend moved here to be a foreign student and paid six months' rent in advance because she had no guarantor or references. She, and now we, have been in the property four years without an issue. The reason I jumped straight to foreign students is both that experience, and that this time of year is just before most universities start and when foreign student visas become valid, so there are going to be more students and particularly foreign students looking for homes for the next year or so.

Comms69

JuicyJesus wrote: »

The thing with that is you retain the right to inspect the property given reasonable notice. OP doesn't have to completely ignore the property after being given six months rent in advance! - That's debateable at best. But if it is a brothel or cannabis farm the LL is as likely to get stabbed as get access....

My girlfriend moved here to be a foreign student and paid six months' rent in advance because she had no guarantor or references. She, and now we, have been in the property four years without an issue. The reason I jumped straight to foreign students is both that experience, and that this time of year is just before most universities start and when foreign student visas become valid, so there are going to be more students and particularly foreign students looking for homes for the next year or so.

Though I do agree it's far more likely to be legitimate

gwynlas

When LL I had foreign students pay up front as they knew they were moving on after six months,
When I sold my residential property paid six months up front on rental as no tenancy reference.