Hello,
I am considering accepting a student who can pay cash upfront and who has a UK guarantor. I hear of agencies taking 12 months upfront but OpenRent allows only up to 6 months upfront with cash.
Can I do a 12 months upfront cash and still use the OpenRent platform?
- Or, must I do it by myself?
If I make the contract myself, would I need to set up a Ltd and take the money directly?
- How would I legally keep the deposit?
- Just in a separate bank account or could I keep their deposit in my own bank account but in a safe “space” of the account.
Or can I take the maximum OpenRent allows me to take – total of 6 months including the deposit – and then separately ask for the remining 6 months (12 months total) to my personal account? So half on OpenRent and half to me directly.
Any advice?
My last tenant paid 6 months upfront and then paid faithfully thereafter but he left contact 2 months earlier than contract allowed - though he gave me 2 months notice. I would like to lock in 12 months minimum this time.
Thank you in advance for your help.
Kind regards
As far as im aware opent have a rent in advance limit of £12k. The default tenancy is 6 months, you wouldn’t be able to take more rent than overall tenancy so check the contract is for 12 months. If the rent in advance exceeds £12k you can ask tenant to pay balance to you directly.
If you do do it directly you dont need a ltd company but would need to protect the deposit via an approved scheme.
You should bear in mind that once the Renters Rights Bill becomes law, (probably about 6 months from now), it will be illegal to accept or hold more than 1 months rent in advance and you will have to refund the balance to him.
Why take the year upfront, just take the Months and don’t take the student for a ride.
Asian students normally pay a tear in advance because that’s normal in Asia…but not the UKAs landlords, we need to do better and improve our image.
Why is it taking the student for a ride ?
I wouldn’t take any international student without rent upfront . It would be foolish to do so.
Students pay termly anyway
They never have money when their loans run out
I took rents monthly and i lost at least two months of the AST in arrears
The best advice a landlord gave was to tell me to take it monthly
The other issue is students rent with bills included
I wouldn’t offer that service without a large sum being put on the table . It would be a massive risk .
Student damages often are way above the minimal deposit . Having the rent up front at leaves gives you assuring you won’t have arrears
This is not about improving image this is about managing the risk the tenant brings to your property
I’m not saying not to take any money. When I said “the months” I was referring to the 6 months you mentioned.