We are just about to relet a property. Prospective tenants have said they would like to pay 6 months rent in advance (their idea, not ours!). They both work and have ample income to cover the monthly rent.
On the face of it its seems ok, but I am wondering if there are any legal implications if we accept this payment in advance.
Thanks for any information or advice
I had tenants who did this also >Make sure you have on the agreement that after 6 months it is every ONE month
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Hi.
I’ve not had any problems with accepting 6 months rent up front on 2 occasions. Some people just prefer to pay in bulk. Good luck.
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Hi John, as @Colin3 and @Shabbir say, make sure that the payment is clearly agreed as being advanced rent and not a deposit. Be sure too that the period of the tenancy is clearly described as monthly, not six-monthly.
It is also worth checking whether anti money laundering laws apply. Large payments often require the payee to conduct anti money laundering checks.
In general, however, accepted six months rent up front is fairly common.
Sam
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Hi all,
Sorry being dumb - can I amend the contract via rent now to reflect a 6-12 month payment upfront.
Perspective tenant is a mature student but folks are going to pay it for them.
Hi Glen,
We support advanced rental payments within Rent Now, yes. I don’t know what stage of the process you are up to?
Here’s a guide on how to do it.
Great, thanks Sam.
I presume that is then paid as one lump sum. Post the 7-14 day holding period expiring ?
Thanks again for the guidance.
Yes exactly, Glen.
Sam