I’m not sure if this is the right place to raise this, but I could really use some urgent help. I’ve been trying to resolve this through OpenRent directly, but the responses have been slow and unhelpful, which has been extremely frustrating.
I listed my property before all the decorating and finishing touches were completed. In the meantime, I’ve found great tenants, and we’ve agreed on a reduced rent for the first two months as a goodwill gesture. I asked OpenRent how to formalise this, and they advised adding a custom clause to the contract — which I did. The agreement has been signed, and the tenants are due to move in tomorrow.
However, Rent Now is still requiring the tenant to pay the full first month’s rent in advance and is not recognising the agreed discount.
My question is: how do we resolve this? How can the discount be applied correctly so the tenant isn’t overcharged?
I would think.you need to be careful with regards to the tenant fees act as if you have a reduced rent then the deposit could exceed 5 weeks rent.
If you are not using rent collection i would say the simplest way is for tenant to pay the first month rent in full and then you adjust the second month rent which is paid directly to you to reflect what was agreed.
Thanks Richard19. That actually is the solution I proposed to the tenants. Pay in full then I credit month 2 with the amount overpaid. It’s not ideal. I do use rent collection. I believe you can add credit to a rent collection account so that less is due from the tenant. I don’t think it affects the deposit as the standard contractual rent is what it is. I’m just offering an initial reduction due to some work the tenants are prepared to take in themselves. Openrent themselves suggested I use custom clauses to formalise the structure, yet their own system is unable to consolidate it!
I guess another solution is, as it is possible to split the initial payments (they don’t need to be made in one lump), I pay the shortfall!! Then get it back after 10 days!! But that’s just backwards!
Crediting month two is a breach of the tenant fees act
You can’t have a first high rent then reduce on the second month
Maybe you want to get them to pay the full first month as it looks like you are indirectly charging fees ( although you are not ) and then refund surplus upon receipt
@A_A I don’t think it would, because I’ve added custom clause (as recommended by OR), to reflect the discounted first month. So if tenant accidentally paid too much in the first month, it would be only normal to credit back, no? Anyway, the tenant doesn’t like this option. She tells me she has contacted OR and will wait for them to fix it. I don’t know how to tell her, she’ll have a long wait!!
OpenRent have told me I can “unwind” the Rent Now, but I’m unsure of the implications. Does it mean the contract is cancelled??
@Karl11 Yeah. I think this is a good idea. So I think I go back and edit contact, untick box for rent collection and save? Then everyone should simply sign again? Am I right?
No need to sign again. Your contract still stands. If you turn off rent collection, the tenant will be told to pay direct to you.
That said, it still won’t work for you as OR still need to collect a deposit & full first months rent. You can’t change that, as deposit & full rent must be paid to Openrent. You could then refund though.
Only other option is to fully unwind OR contract & sign your own contract directly, but no time for that if key handover is today
@Karl11 is correct here, the Rent Now process requires the full first months’ rent and security deposit to be paid in order to set up the tenancy in accordance with the contract and our terms.
We do also provide the option to add in custom clauses but we do not endorse them nor can we enforce them within the Rent Now system. If a custom clause overrides an existing clause within the contract - we won’t reflect this in the system.
A suggested workaround here would be to return part of the initial rent once you receive this (no later than 10 days after the move-in date) or deduct this cost from future rental amounts which you can use our Rent Collection service to facilitate.
The Rent Now process is defined under “How Rent Now Works” here:
Thank you all, and especially @mod_harry for the clarification.
After narrowing it down from 30 applicants — a long and difficult process that unfortunately meant disappointing many — I’d really prefer not to start again if this issue turns out to be a deal-breaker.
The only other option I can see right now is covering the shortfall myself. I know the initial payment can be split rather than paid in one lump sum, but I’m unsure if I can log in as the tenant to handle that myself. Perhaps I could ask the tenant to pay the full amount, and I reimburse her straight away.
There has to be some level of trust between landlord and tenant, after all. Just thinking aloud at this point…
It would be possible for you to top up the shortfall yourself as the rent would then be transferred back to you after the move-in. The tenant will be able to access the payment details for the final balance which can then be passed on to you.
I’ll stress that this is not a recommended process but is a plausible workaround if you’re certain this tenant will be suitable.
Well, just to finalise the story here ; the tenant has paid the full amount, and agreed for a credit to be added to month 2. I think I’ve seen that function on my other tenancy. Thank you, all!!
If the finishing touches are just cosmetic then ok, but if its more than this, you should not let a property that is not ready. It could be a breach of HHSRS and the Fitness for Habitation Act.
It really is only superficial stuff… But the new tenant, a professional builder who does refurbishments, plans on doing much more, like kitchen, bathroom, etc. He had an impressive portfolio (with excellent reviews). It really wasn’t the only reason I rented to him… Honest!! lol
