New Contract Proposal

Hello,

I have a new proposed tenant, well actually 3 will be on the tenancy agreement that is willing to pay 1 payment to cover 6 months rent in advance and also 1 monthly payment every month starting 1 month after tenancy starts which is basically a payment to cover 6 months in advance, so the first monthly payment would cover month 7, the second month 8 etc. This is purely to cover any risk my side. Clearly that deal seems fine to me. How do i write this in a contract and i assume theirs no legal issues with this ?

The tenants are Ukrainian and hence why they are offering this as theirs no credit checks etc they would pass.

Thank you

This needs to be done correctly by someone qualified. Otherwise leaves you wide open. Sounds simple but it isn’t.

You are complicating things unnecessarily.

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Hello,

The below is what has been added under rent after multiple discussions regarding making sure it does not count as deposit etc. Any issues anyone see’s ?.

TERM
7. The term of the tenancy commences on 1
st December 2022 and ends on 30th November
2023.
8. Should neither party have brought the Tenancy to an end at or before the expiry of the
Term, then a new tenancy from month to month will be created between the Landlord and
the Tenant which will be subject to all the terms and conditions of this Agreement but will be
terminable upon the Landlord giving the Tenant the notice required under the applicable
legislation of England (the “Act”).
RENT
9. Subject to the provisions of this Agreement, the rent for the Property is £1,500.00 per month
(the “Rent”).
10. The Tenant will pay the Rent in advance each and every month of the Term to the
Landlord at xxxxxx or at such other place as the
Landlord may later designate by cash, standing order or electronic payment using an online
money transfer service as per the schedule below:
a. 6 month’s rent in advance on or before the 1st December 2022 to cover the period 1st
December 2022 to 31st May 2023.
b. One month’s rent on or before the 1st January 2023 to cover the period 1st June 2023 to
30th June 2023.
c. One month’s rent on or before the 1st February 2023 to cover the period 1st July 2023 to
31st July 2023.
d. One month’s rent on or before the 1st March 2023 to cover the period 1st August 2023 to
31st August 2023.
e. One month’s rent on or before the 1st April 2023 to cover the period 1st September 2023
to 30th September 2023.
f. One month’s rent on or before the 1st May 2023 to cover the period 1st October 2023 to
31st October 2023.
g. One month’s rent on or before the 1st June 2023 to cover the period 1st November 2023 to
30th November 2023.
11. The Landlord may charge the Tenant an additional amount for each day that a payment of
Rent is late, which will not be charged until the expiry of the applicable grace period under
the Act and will not exceed the maximum permitted under the Act.
12. The Landlord may increase the Rent for the Property upon providing the Tenant such notice
as required by the Act.
13. Should the Tenancy extend past the 30th November 2023 the Tenant will pay the Rent in
advance on or before the First of each and every month with the First payment due on or before 1st December 2023 to the Landlord at xxxxxxxxxx or
at such other place as the Landlord may later designate by cash, standing order or electronic
payment using an online money transfer service

This is the problem with amateur tinkering with legal documents. I’m afraid your idea wont work because the 6 months you take up front covers the first 6 months of the tenancy and if you stsrt taking further money to cover the same period, it will be classed as an illegal deposit. Not only will you be in breach of both the Tenant Fees Act and the deposit legislation, but the tenant will be able to sue you for a penalty of 3 times the value of your 6 months initial rent.

Its also worth mentioning that if the 3 people are not all related to each other, you will have an HMO if you let it to them.

May I suggest some landlord training.

2 Likes

Sorry, i was told that if it clearly states what each payment covers. all is fine. But that advise was clearly wrong. So i have changed it for a 12 month agreement with 6 months upfront with monthly payments starting only after the first 6 months is complete and added a 6 month break clause. I dont pretend to have done wording myself on this, all wording has been done by legal site and paid for accordingly i.e lawdepot. The wording now reads ;

TERM

  1. The term of the tenancy commences on 1st December 2022 and ends on 30th November 2023 (the “Term”)
  2. Should neither party have brought the Tenancy to an end at or before the expiry of the Term, then a new tenancy from month to month will be created between the Landlord and the Tenant which will be subject to all the terms and conditions of this Agreement but will be terminable upon the Landlord giving the Tenant the notice required under the applicable legislation of England (the “Act”).

RENT

  1. Subject to the provisions of this Agreement, the rent for the Property is £1,500.00 per month (the “Rent”).
  2. The Tenant will pay the Rent in advance each and every month of the Term to the Landlord at … or at such other place as the Landlord may later designate by cash, standing order or electronic payment using an online money transfer service as per the schedule below:

a. 1 month’s rent in advance on or before the 1st December 2022 to cover the period 1st December 2022 to 31st May 2023.
b. 1 Month’s rent in advance on or before the First of each and every month with the First payment due on or before 1st June 2023.

  1. The Landlord may charge the Tenant an additional amount for each day that a payment of Rent is late, which will not be charged until the expiry of the applicable grace period under the Act and will not exceed the maximum permitted under the Act.

The Landlord may increase the Rent for the Property upon providing the Tenant such notice as required by the Act.

Why do this? Why not just have a 6 month contract with 6 months rent in advance if you want? Much simpler and less to go wrong. Break clauses are notorious for not being enforceable.

That drafting is wrong surely given what you said you want! Its also a mess. Why dont you just join the NRLA and use their free model tenancy agreement as well as all their other model documents. They also have a free helpline.

Does the local Council have an Additional Licensing scheme in place?

1 Like

Hello, many thanks for your help, i have now fully checked that all tenants are same family and have right to work etc.

I did not know about NRLA, so your help is much appreciated. I am what they call a accidental landlord. I have evicted the last tenant successfully though on a section 28 followed by all the court paperwork up to and including ballifs without any legal. So i must doing something right. All these regs do need constant keeping up with though, But everyone can learn.

An accidental landlord with no professional help is extremely vulnerable to making a costly mistake. I would suggest you join NRLA and read everything you can find on their website.

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Will do and thank you.

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