Tenants paying upfront 6-12 months

suestew

I am renting a property I own outright.  I have a few prospective tenants offering to pay 6 or 12 months upfront.  I am aware that this is a red flag to some but I am happy with their reasons as I am currently renting somewhere and I paid 6 months upfront with similar reasons for doing this. 
I have used a LA on a let only basis, I will make sure they still do the credit checks etc on these tenants.
In the agreement with LA it does state that if something is paid upfront they will pay me monthly, my question is if its Let Only can this be negotiated that I get the payment?  Obviously my main concern is if the LA goes bust.  I will chat with them tomorrow but I just wanted to see if I can get advice from you guys today.  
To protect myself am I better in asking for 6 months and forgetting the 12? 

greatcrested

Get the contract with the agent changed. I would not want the agent to hold my money for 6 /12 months. What possible reason is there for this except to boost their bank balance? Rent paid by the tenant belongs to the landlord, irrespective of when/how paid.

And contracts can be changed to meet the needs of each side. There is nothing holy about the agent's 'standard contract'. Delete or amend the bit you don't like before signing (and get agent to initial the change. If you've already signed, get an amendment agreed and signed. Do not rely on a vague promise "to pass the money on".

PasturesNew

Your money, not theirs. Get it all. 

Trillionski

I thought the whole point of getting paid upfront was for it to go into your pocket. The agents should not be able to dictate these terms.

suestew

Unfortunately I've signed it.  I've read on previous post on here that it's to protect the tenant in case Landlord goes bankrupt or house repossessed, but there is no protection for me is there? 

greatcrested

suestew said:

Unfortunately I've signed it.  I've read on previous post on here that it's to protect the tenant in case Landlord goes bankrupt or house repossessed, but there is no protection for me is there? 

Simple. I assume no fees are due to the agent unless you agree a tenancy with a tenant they introduce? So refuse to accept a tenant from them, find another agent and start again - this time ensuring you do proper due diligence before signing up with the new agent (not just this aspect, but everything about the contract).

I bet the current agent will rapidly agree to amend the contact you signed with them in order to keep you as a client.....

You are the client. Don't let your employee dictate matters to you.

suestew

greatcrested said:

Simple. I assume no fees are due to the agent unless you agree a tenancy with a tenant they introduce? So refuse to accept a tenant from them, find another agent and start again - this time ensuring you do proper due diligence before signing up with the new agent (not just this aspect, but everything about the contract).

I bet the current agent will rapidly agree to amend the contact you signed with them in order to keep you as a client.....

You are the client. Don't let your employee dictate matters to you.

As they have already done a fair bit of work, even if I pull out for another agent surely they are not going to let me walk away without some compensation? although it does say in their terms upon commencement of a tenancy 'the consideration thereof the landlord shall pay to the agent a fee as reflected below.....

davidmcn

suestew said:

greatcrested said:

Simple. I assume no fees are due to the agent unless you agree a tenancy with a tenant they introduce? So refuse to accept a tenant from them, find another agent and start again - this time ensuring you do proper due diligence before signing up with the new agent (not just this aspect, but everything about the contract).

I bet the current agent will rapidly agree to amend the contact you signed with them in order to keep you as a client.....

You are the client. Don't let your employee dictate matters to you.

As they have already done a fair bit of work, even if I pull out for another agent surely they are not going to let me walk away without some compensation? although it does say in their terms upon commencement of a tenancy 'the consideration thereof the landlord shall pay to the agent a fee as reflected below.....

They're only entitled to what the contract says they're entitled to, they can't just claim arbitrary "compensation".

greatcrested

suestew said:

greatcrested said:

Simple. I assume no fees are due to the agent unless you agree a tenancy with a tenant they introduce? So refuse to accept a tenant from them, find another agent and start again - this time ensuring you do proper due diligence before signing up with the new agent (not just this aspect, but everything about the contract).

I bet the current agent will rapidly agree to amend the contact you signed with them in order to keep you as a client.....

You are the client. Don't let your employee dictate matters to you.

As they have already done a fair bit of work, even if I pull out for another agent surely they are not going to let me walk away without some compensation? although it does say in their terms upon commencement of a tenancy 'the consideration thereof the landlord shall pay to the agent a fee as reflected below.....

As I can't read the contract you signed I can't comment.

45002

suestew said:

I am renting a property I own outright.  I have a few prospective tenants offering to pay 6 or 12 months upfront.  I am aware that this is a red flag to some but I am happy with their reasons as I am currently renting somewhere and I paid 6 months upfront with similar reasons for doing this. 
I have used a LA on a let only basis, I will make sure they still do the credit checks etc on these tenants.
In the agreement with LA it does state that if something is paid upfront they will pay me monthly, my question is if its Let Only can this be negotiated that I get the payment?  Obviously my main concern is if the LA goes bust.  I will chat with them tomorrow but I just wanted to see if I can get advice from you guys today.  
To protect myself am I better in asking for 6 months and forgetting the 12? 

https://forums.landlordzone.co.uk/forum/residential-letting-questions/1098988-tenant-paying-6-12-months-up-front

shinytop

45002 said:

suestew said:

I am renting a property I own outright.  I have a few prospective tenants offering to pay 6 or 12 months upfront.  I am aware that this is a red flag to some but I am happy with their reasons as I am currently renting somewhere and I paid 6 months upfront with similar reasons for doing this. 
I have used a LA on a let only basis, I will make sure they still do the credit checks etc on these tenants.
In the agreement with LA it does state that if something is paid upfront they will pay me monthly, my question is if its Let Only can this be negotiated that I get the payment?  Obviously my main concern is if the LA goes bust.  I will chat with them tomorrow but I just wanted to see if I can get advice from you guys today.  
To protect myself am I better in asking for 6 months and forgetting the 12? 

https://forums.landlordzone.co.uk/forum/residential-letting-questions/1098988-tenant-paying-6-12-months-up-front

Why do people do this, i.e. post a link to the same question the OP has posted on another forum? Not passing judgement, just curious.