If you are asking whether this is a way around getting lump sum rent in advance then I believe the answer is no. The bill talks about the amount of rent the tenant pays at any one time, not where its paid to.
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Thanks for clarification
I agree, in trying to avoid bad landlords they are making it harder for those of us who try to give someone a break.
Similarly, placing limits on rent rises will mean tenants I have been maintaining a low rent for, due to the fuel crisis and their personal situation, will get their rent increased sooner rather than later.
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Another example of this Bill making it harder to give someone a break is the section around rent increases. You will no longer be able to give a tenant a short term rent reduction, as many landlords did around covid time or if theyre between jobs. The reason is that you cant just increase the rent again at the end of the period.
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I only rarely use this and mostly because tenants offer it.
I’d rather have a tenant who can pay reliably for the duration of the tenancy. This ruling is more a problem for prospective tenants.
Listening to some podcasts on the subject student landlords are particularly concerned at not being able to take rent in advance. The students receive their maintenance grants for each term and will often want to pay the landlord in advance for the term without the landlord asking. I suppose students will have to learn to manage their finances better…
In nearly 35 years, only had a handful of Ts offer more than the one month minimum. I’ve never accepted it. I rent properties mostly to single parents or young couples and all have some form of income via benefits so I’m at the vulnerable end of the rental market. I can’t see it changing my practice nor whether the most vulnerable can secure one of our properties. I can see it impacting international students, but it might also prevent abuse such as we recently heard on this forum regarding a certain lodger from China.
I can see the dangers there ,they get the grant and spend it too quickly but not on the rent , I do not rent to students so no probs . I bet this reduces the number of student lets, Does the same rule apply to the uni that provides accommodation ?
equivalent of 5 weeks rent as a security deposit
??
Security deposit is different to the rent in advance that this post & David was referring to.
In the old days we used to take monthly from students . The last month of every term was unpaid so you would lose a couple of months on every AST.
In the last 15 years we followed the loans which resolved the losses.
Students don’t tend to pay five weeks deposit either. The market charges a lot less. I think students will have to get used to maximum deposits, mandatory guarantors and renting as a group to reduce the risks to the landlord.
I shall not use a limited guarantor deed anymore either.
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Not great for those with poor credit. I agree most landlords will just refuse them. This will also create a sell off of rental properties as if they cannot be rented, landlords will sell. How does this align with the mortgage provider who won’t allow a tenant with poor credit.
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