Our prospective tenant wants to pay a little less for first few months, before her husband joins her from India, from when she will start paying full rent. I think she will be a good tenant and I’ve had such clauses in my tenancy agreement in the past which worked well for all parties.
However with rental reform, things are different and landlords can get fined for silly things so wanted to get advice. I understand increasing rent in year 1 is not allowed so any increase upon husband’s arrival can’t be worded as rent increase. Also my freeholder charges a hefty fee whenever there’s a new tenancy contract so I don’t want to do a new contract when husband arrives.
How should I put this in the contract? Shall I draft the agreement with full rent and mention discount somewhere? Any advice will be appreciated.
@head17592
Get legal advice but I’d just charge the full amount pcm. That’s the rental amount. If they cant afford it find tenants who can. Why are you discounting from the full rent you actually want - what is amazing about these tenants vs others?
If you then on an informal basis refund a portion in early months the agreed full monthly amount is in the contract which is what matters when it comes to increasing in y2.
If you do anything else you are trusting husband will get visa, arrive, have right to rent, at some unknown point in the future. Why should you take the risk. Why would you not just choose better tenants who can afford the full amount from month1. You are running a business not a charity.
Best
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This is not straightforward under the RRA. I would demand full rent but then separately rebate some of the money. I would only put the full rent in the contract and keep the arrangement informal.
I’m not sure why you want to do this, your costs are the same each month.
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