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

hoiyeeanita

I did this - it was impossible to rent with Martin & Co in Manchester City Centre because they required a homeowner guarantor with a ridiculous income so we ended up paying in 6-12 month increments during the few years we were there.

We could’ve gone with another agent but we were desperate to move into a particular building.

scottishblondie

My husband’s tenant offered 6 months up front as he is self employed and had no one to stand as a guarantor. He started to pay monthly after the first 6 months, and has been in for 2.5 years now.

I think you need to know why they’re offering the 6 months upfront before deciding if it’s a red flag.

G_M

theartfullodger wrote: »

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...)

Can't see the link artful, but I don't see how it could be seen as a deposit provided the contract is clear. Rent is rent and a deposit is refundable when the tenancy ends. The two should be clearly defined.


Another aspect to be aware of is to make clear it's a monthly rent of eg £500, payable 6 months in advance, not a 6 monthly rent of £3000.

Slinky

Somebody I know of sold their business, used the money they got to pay 6 months up front on a rental, and then declared themselves bankrupt.

Novice_investor101

When I first looked for my own flat after leaving student digs (9 years ago) I found a perfect flat, with great parking & a very good price of £475pm compared to some of the total dross I'd been looking at (think damp, tiny, no CH, no parking etc etc for over £500 pm). I wasn't letting this one get away so rather than waiting for all the credit checks etc & possibly losing it I offered to pay 6 months upfront & stated I was looking to be there much longer.
Paying upfront meant I signed there & then & was in within a week. I just "paid" myself the rent each month to build my savings back up.

I then went onto a rolling contract for the next 3.5 years with no rent increases & no checks as the landlord was happy with feedback from the agents inspection. & On finally leaving, at the checkout visit the agent was surprised at how long I'd been there as the condition I handed it back in was impeccable. The only wear & tear was smudge marks around the light switches! She also said the reason the landlord never sought to increase the rent was because he wanted to keep a good tenant who always paid on time & looked after the flat like it was their own.

Their reasons might be entirely similar, or as any others mentioned above. Get the agent to find out why they want to pay upfront.

Charlton_King

You don't lose much anyway if it's a standard AST six month term... and I know quite a few landlords who would give their eye teeth to have that degree of certainty about rental income.

Two tactics to force the odds in your favour:

1. Make sure your required deposit is butch enough.

2. If in doubt you can inspect, as has been mentioned... and you can ask neighbours to contact you in the event of any 'funny business'. Some people would question this as 'snooping' but, as a landlord, I've always taken my responsibilities towards neighbours seriously. In the long run, keeping an eye on things is in everybody's interest.

grad101

I offered 6 months up front both last year and this year when renting. The first because I didn't have a recent rental reference and couldn't provide an acceptable guarantor as both my parents are retired. This year because I'm still waiting for an official contract from a new job and don't want the agent to use lack of employment contract against me (as I've found a place I really want to move into, and again haven't managed to magic up a guarantor the agent's would accept).

I think the idea of 6 months upfront being dodgy is not well known among people looking to rent (this is the first time I've heard of it). Most people I know who've done it (including myself) have offered it purely to secure somewhere they really want to move into - either simply because they think it would make them more competitive against other offers, or because they have situations like the ones above (or are self employed etc) which they don't want to be used as a reason for rejection.