12 months upfront payment

Hi please can you tell me if I pay 12 months upfront who holds the money.

Thanks

Hi @Wendy19,

When you make the payment via OpenRent, we’ll hold any upfront funds for 10 calendar days following the move-in date. After that period has passed, we’ll release any funds to the landlord.

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Thanks I thought that open rent would hold funds and pay monthly to the Landlord to protect the tenant. So there is nothing you can do to get out of a flat with mould and noise issues from neighbours and a passive aggressive Landlord. Who you have asked to release you from the contract after day 3 of moving in and he stalled then said no. Because he knows he will not be able to rent his place. The tenant has been in situ since August. Or is there? I would really appreciate your help. This is on behalf of a 19 year old foreign student. Thanks so much

Even if Openrent held the funds, it would be illegal for them to refund you the balance of the rent on a valid 12 month tenancy.

Speak to the Council housing department. They will schedule an inspection and then speak to the landlord.

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These monies will now have been paid to the Landlord.

You mention the property has mould. Did this appear since they moved in? Was it there when they viewed the property?

Are you sure the mould isn’t caused by poor housekeeping. ie not ventilating/ heating etc?

foreign student Karl so possibly didn’t have a chance to view before they agreed AST and the OP says that they asked for a surrender on day 3 so unlikely to be tenant’s lifestyle that caused it initially

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Hi thanks for coming back to me. Yes it is not condensation mould. There is hardly any ventilation in the bedroom only 3 windows. 1 doesn’t open but the others do are opened regularly. They are very small and at street level. I work in lettings and we keep the funds and pay them monthly to the Landlord. We have asked him for a tenant surrender fee to cover his costs of finding a new tenant but again he was passive aggressive.The bathroom is internal and has a poor quality fan. The property was an Airbnb before a full time rent. It is built into a bank ans below street level at the back and damp. She viewed it on her own (stupid) especially as she has very little experience of rental property and paid £18,000 to live there. I take it there is no help open rent can give her. So it’s a long wait with the Council to come out.

I would still report this landlord to Openrent, preferably with photos of the problem. They have the right to refuse further ads on the property.

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Hi can I ask where that information might be in the contract as this would explain a stall in communication from said Landlord.

Many thanks in advance..

This is in Section 15.1 of our Terms & Conditions and in Clause 4 of our Assured Shorthold Tenancy.

These do cite a maximum time of 14 days from the move-in date, but in reality funds are sent on the 10th day after move-in.

Note that where the final balance is settled after the move-in date, there may be delays in the release of the initial rent.

Hi thanks for this information..I have checked the AST and there is no mention of this contract being paid in full in advance. Is that usual perhaps you could check for me. Also the tenant has a deposit certificate copy unsigned by both her and the landlord. Is this an oversight? If you wish to contact me please do.

Typically deposit certificates aren’t signed by anyone. Do you mean the prescribed information? If you don’t have that, you have great leverage.

The RRB is about to become law however. When it does, I believe all fixed term contracts will be abolished and she will be able to give a month’s notice and leave. At that point, he will have to surrender any monies he has for rent beyond the date of checkout.

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@Wendy19

Hard to blame LL.for noisy neighbours. That’s a neighbour dispute. Tenants sign an agreement and there’s not a break clause to allow departureafter 3 days based on noisy neighbours usually (even if that were legal which I’m not sure about). Nobody has to be nice and voluntarily end contracts if inconvenient for other party.

Perhaps get the council to inspect or ask citizens advice or someone who knows about solving damp issues in basement flats-

-if not habitable and clearly LL fault then tenant can claim a reduction on the rent perhaps. But if that was the case at day 3 tenant really should have noticed before signing. Fact tenant presumably raising now with you months later does make it sound more like lifestyle unless you have evidence the mould predated (does tenant have photos showing problem from day1/move in).

But doesn’t make any sense to say it’s not condensation mould but refer to a poor quality bathroom fan. Bathroom fans send steam ie condensation outside so a poor fan doesnt.

If the cause is external such as faulty guttering/roofing above or driving rain (esp in coastal areas), or rising damp, that could be the responsibility of the freeholder or mgt Co if LL is a leaseholder, so it’s possible the LL is pursuing with them. Which always takes time.

Whatever the cause it must be possible to solve as there are plenty of basement flats and they don’t all suffer from mould. If noise isn’t a deal breaker the tenant might try buying a dehumidifier (there are which recommended ones for under 150 quid) to see if that solves it. (And if not sell on as nearly new on ebay to recoup at least half the cost - def cheaper than hiring).

If tenant can find a solution to the problem by getting advice (eg a better bathroom fan and/or dehumidifier) LL may be willing to pay the cost rather than losing all that rent in a month or two (maybe longer due to transition period) when RR is in force and tenant can just give notice. And in their interest to find a way to make flat suit long term tenants not airbnb if that’s what they want.

If tenant has been there since August then if there’s a break clause at the 6 month point like the standard one then they should be able to give notice relativly soon and perhaps before RRB transition arrangements have ended

“Mutual Break Clause
12.6. ….”

-worth checking

Good luck

Hi tatemono

Many thanks she has prescribed info but absolutely nowhere on the AST is there any mention of her making 12 months upfront. I thought that the deposit certificate had to be signed by the tenant and the Landlord?

I honestly really hope the RRB bill does mean that she can give notice and have a refund of rent paid in advance. I am not sure I would trust him to pay it though. The rent in advance payment was made to him and not openrent. Again I am surprised.

This really is not a good situation for her to be in at all. I can’t understand why people operate in this way.

The aggressive tone and behaviour be used when dealing with her is totally unacceptable and the whole thing is a shambles.

Thanks for taking the time to respond.

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Hi David

Thanks for responding and there is a dehumidifier and not making any difference.

No break clause but I am going to take her to get legal advice on her rights once RRB goes through and she asked to leave 3 days after moving in. Landlord was not up for that all.

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The deposit cert is issued by the scheme and contains tenant and landlord contact details as well as details of the tenancy and deposit amount etc.

It’s the PI which needs to be signed by both tenant and landlord.

er…

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We make sure. We sign the certificate for the Landlord as their agent and we get the tenant to sign too. Perhaps not a legal requirement but we do this nevertheless.

Thanks to all for the help and advise given I have now spoken to legal and they have given great advice.

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Just for clarity, once a 12 month contract is signed and the tenant takes possession, the tenant owes the full 12 months rent to the landlord no matter how its paid. The landlord could sue the tenant for the money.

Hi David

He advertised on open rent. But She paid ÂŁ18k into his bank account before moving in. Silly girl.

Thanks

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Not if they give notice and move out they couldn’t. They’d have to refund the outstanding rent wouldn’t they, particulalry as in this case, the AST doesn’t mention one single 12-month payment of rent?