How to operate the 12 months upfront payment with Open Rent

Landlord Discussion
1

I have a tenant from overseas and will move to the UK in two months. They can offer 12 months rent upfront. They will move in two months later, if they pay 12 months to Openrent then Open rent will hold the fund for two months more after they move it, is it ok or any way to collect the rent is better?

2

Firstly, OR only allows a maximum rental payment of £10000 so if your rental for the twelve months is above that you can’t collect it through OR.

OR pays the money into your account ten days after the start of the contract, irrespective of if that is now or in two months.

3

Thanks for your advice.

Yes, Open Rent can’t take 12 months upfront. So I had sorted out with the tenant for the rest of 11 months’ payment.

4

Does the person have a job? 12 months can go by very quickly and they have to then be able to pay the rent.

5

Hi Daisy,
I am a new comer in this wonderful community.
Nice to you meet you guys.
I am actually a rentee from oversea Hong Kong and find it really hard to rent a property for a family of 3 in UK. Even though I am happy to pay upfront but if landlord doesnt know how to do it. Then, its still put me in the end of the applicants list. So just wondering if you could let me know how to deal with upfront payment.

Cheers
Andy

6

Thanks David,
They don’t have a job offer in the UK so thats’ why they offer to pay 12 months upfront, but they have Sufficient funds to live in the UK for a few years.

7

Hi Andy,

I could understand your situation. I rent the house to a family from Hong Kong. I have never tried to take 12 months upfront before, the procedures are different from the normal letting, and also there might have a risk for the landlords so thats’ why many landlords don’t want to take it.
Open Rent can’t take big amount upfront, only take up to £12000, so the landlord had to arrange the rest of the payment with the tenants directly outside the Rent Now platform. If the landlord want to go through the letting through Open Rent-Rent Now, the tenants need to pay one month rent + deposit to Open Rent then arrange the remaining payment to landlord directly. Or the landlord can deal with the payment directly outside the platform with the tenants.
I hope this helps. Good luck for your house renting.

8

Hi Daisy1, Just to let you know we have an article on this here:

OpenRent can take up to 12 months rent in advance, however there is a total cap as you mentioned. It’s possible to take X months rent in advance up to the £12k initial payment limit however, for example taking 6 months in advance instead so that’s done legally and securely.

Cheers, Daz.

9

Whilst I wouldn’t rule them out, the lack of a job would lead me to ask lots more questions to establish their prospects for a regular income. I’d also want to know the level of savings.