Questions on working out rent affordability for tenants and rent guarantors

PRAISETHESUN

I agree that simply asking for a once-off up-front payment doesn't really help as they could still stiff you for 6 months rent at a later date. When I first moved to the UK I ended up doing exactly as you describe and paid in advance on a rolling basis - although it wasn't 6 months' worth. When I moved out 3 years later the few months of up-front rent was refunded as an over-payment, in addition to my deposit which was held separately. Alternatively I could've just asked to not pay rent for the last few months if I wanted to give sufficient notice. As a tenant the only reason I was comfortable with this though was because the property was managed by a reputable local letting agent. I don't think I would've been okay with it if this was a private landlord, but if your proposed tenants are happy with the arrangement, then that's probably the safest way to give some confidence that you won't have to deal with rent arrears.

tallac

dimbo61 said:

If they pay 6 months rent in advance and then pay the rent each and every month then you fall foul of the law as you have taken 6+ months rent as deposit !
All part of the fun of being a Landlord.

Doesn't this contradict what AdrianC has said? Rent paid in advance is being held as security against future damages so it's not classed as a deposit.

Also, is there some significance in taking more than 6 months rent in advance? If a tenant wanted to pay 12 months rent in advance, then how does that change things?

tallac

So just to be clear, if a tenant is willing to pay 12 months rent in advance. After they've stayed in the property for 1 month, they'll then have 11 months rent in advance. I would then request them to pay a months rent so they are always 12 months rent in advance. This would be in addition to the 5 weeks of deposit which is held as security for future damages (registered an authorised deposit registration scheme).

The reason for this is that I am getting a lot of tenants enquiries who do not have sufficient income but they are offering to pay 6 or even 12 months in advance. I can't see an issue with this provided they are keeping their advance payment topped up on a rolling monthly basis.

Any issues or concerns with this?