Hey all - important to distinguish here between rent in advance and a rental period.
A tenancy’s period is how often the rent is due for the property as a matter of course, and has knock-on effects for how much notice must be given when serving rent increase and eviction notices. Most ASTs have a monthly period, i.e. rent is due once a month and the rental period runs month-to-month if the tenancy lapses into a periodic tenancy at the end of the fixed term.
Rent in advance is simply paying more than one rental period’s worth of rent before the tenancy starts. E.g. paying six months’ rent up before beginning a monthly tenant, or paying four weeks’ rent ahead of a weekly tenancy.
Taking multiple months’ rent in advance reduces your risk insofar as it guarantees more rental income at the start of the tenancy than just taking the first month’s rent.
Yep exactly. Adding a guarantor to the tenancy reduces the risk of rent arrears further, since the guarantor will be liable to pay the rent if the tenant does not.
It’s a tradeoff between the tenant being able to afford it vs. you guaranteeing the receipt of more of the rent via its advanced payment.