Paying 12 months in advance, when to negotiate reduced rent pcm?

JustinBunn

Just a little background on the situation: 
I am a UK resident that has secured work at Stansted. As this is a graduate job, i will only be earning £19,100. My partner and i have found a property that we like marked up at £725pcm. Now, my partner and i could easily afford this, and this is where it gets a bit tricky...she is on a zero hour contract. The agency we are in contact with said the only way to get past the referencing would be to pay the full 12 months up front. We can easily afford this and will probably go through with it. But as this is my first time renting, im not familiar with the process that comes after viewing the property.

From my understanding, i can say on the day of viewing that we would like to apply for the property, and from there, i may be able to put the holding deposit down on the same day. 

However, i would like to clarify that:

1) the contract i will be signing for is for 12 individual months, paid in advance and NOT a year long contract.
2) in the event that we use break clauses or surrender the property, we will get the following months of rent, where we will not be occupying the property, paid back to us in full.

> We would also like to negotiate the rent, because we (will) be paying 12 months in advance. 
> We would also like to negotiate if we can do a 6 month rolling contract instead of 12 months, still paying in advance.

My question: When do i discuss all this (the contract details + negotiating the rental duration and price)? 
Should i talk about this with the agency before viewing the apartment and signing a holding deposit or after?

Sorry if this sounds silly, its my first time renting and its all a bit confusing right now, i have tried researching it. Thanks 

FinallyStoppedLurking

I doubt they would take a lower rate just because you are paying in advance. They may consider a shorter contract, they may not.
Do you have someone who could act as a guarantor instead? I wouldn't pay a deposit until you have ironed out the situation. 

Comms69

No reason for a reduced rate. 

JustinBunn

Okay. Its just that i was reading about paying in advance and people talk of getting a small amount knocked off the ppcm. 
So would i discuss changing the 12 months to 6 months with the agency or landlord. And would i discuss this before or after making a holding deposit?

Comms69

I'd discuss it straight away, it's clearly a big deal. 

Robbo66

You will be paying for the entire 12 month fixed term not 12 individual months. Would be surprised if you get a discount or a break clause. Should you decide to vacate early this would need to be with permission from the landlord and you would be liable for their relet costs as well as rent and bills till a new tenant moves in or end of fixed term which ever comes soonest. Should a new tenant move in before the expiry of the fixed term then you should get any overpaid rent back.
You would discuss your options at the point you make your offer

macman

There's no point in a LL getting you to pay 12m upfront and then offering a break clause after 6m. They clearly want to let for a minimum of 12m. Minimum for an AST is 6m, after that it becomes a statutory periodic tenancy.

diggingdude

I wouldn't be agreeing to a 12 month contract without a break clause in this climate, especially when you are on lowish wages and partner is zero hour contract. I would be negotiating a 6 month break clause. There must be other properties in the area if not. As someone actually planning on paying rent you do have some power in negotiations at this time as many many people are defaulting 

PRAISETHESUN

The reason you are being required to pay up front is because you haven't passed the credit check and are therefore seen as a riskier tenant. It's highly unlikely they will negotiate a reduced rent - although it never hurts to ask. I'd be up front and ask during the viewing personally, as then you won't waste either your own or the landlord/letting agent's time if they are not fond of what you are proposing.

What you'll probably find is that you'll be locked in for the initial 12 months but then the tenancy should revert to a periodic monthly rolling agreement unless you sign a new lease on new terms. I doubt there will be any break clauses unless you specifically negotiate them, again be up front if this is something you are likely to want. The LL may not want to rent to someone who can't guarantee an initial 12 month tenancy.

JustinBunn

Thanks everyone for the help. Its really appreciated. Based on what all of you have said, ill discuss the option of doing 6 months + 6 months during the viewing. I might also try and knock off £25 per month, it cant hurt to ask. I'm honestly starting to get a bit desperate now though, as my new job starts in three and a half weeks. If i have to do the full 12 months in advance without a break clause i will, but it will feel like a bit of a gamble unless one of you is a psychic medium that can predict the future! 

greatcrested

JustinBunn said:

..... The agency we are in contact with said the only way to get past the referencing would be to pay the full 12 months up front. .....
However, i would like to clarify that:

1) the contract i will be signing for is for 12 individual months, paid in advance and NOT a year long contract.
2) in the event that we use break clauses or surrender the property, we will get the following months of rent, where we will not be occupying the property, paid back to us in full.

> We would also like to negotiate the rent, because we (will) be paying 12 months in advance. 
> We would also like to negotiate if we can do a 6 month rolling contract instead of 12 months, still paying in advance.

My question: When do i discuss all this (the contract details + negotiating the rental duration and price)? 
Should i talk about this with the agency before viewing the apartment and signing a holding deposit or after?

Sorry if this sounds silly, its my first time renting and its all a bit confusing right now, i have tried researching it. Thanks 

1) almost certainly the tenancy agreement will be for a fixed term of 12 months ie from 1/12/20 to 30/11/21.

2) there is unlikely to be  break clause. If there were, the LLmight as well offer you a 6 months agreement. owever no reason not to ask for one. If the LL agrees, and you activate it, you would be due a refundon any advance rent paid, subject to the exact terms of the Break Clause

3) You are not ofering to pay in advance as a negotiating ploy, you are paying rent in advance due to your financial circumstances. I doubt you'll get a discount on the monthly rent, though it does no harm to ask

4) by "6 month rolling contract" do you mean 6 month contractual Periodic Tenancy? This is very (very) rare. I suspect you mean a 6 month fixed term followed by a monthly periodic (rolling) tenancy. You can certainly ask for 6 months instead of 12, and this would automatically be followed by month periodic (no agreement needed), but many LLs want the security of knowing the tenant will stay longer (ie 12months) since every change of tenant costs them money, time and hassle.

5) the earlier you discuss/agree these matters the better but not before viewing.No point having extended discussions about a property you might not like!

Youmight find this useful reading:

Post 4: Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?