I have a potential tenant that has offered to pay three months in advance. I have never done this before. Can anyone offer some advice on how this should work? I always manage contracts, rent, etc… myself. Would I take the money up front, but still expect the monthly payments to come in every month…October, November, etc… I would still expect to take a deposit against any damage. I would expect that I would have to write this into the tenancy agreement. If anyone has any advice on how to deal with this, I’d be grateful.
If they pay 3 months up front that is rent for the first three months, then they start paying normally month to month.
If they move in on November first they should pay three months (for November, December, January) and then pay normally from February. On top of that you can ask them to pay the deposit to put into a scheme.
You must NOT mix the advance rent up with the maximum 5 weeks’ deposit you can hold.
Openrent has a standard box you can tick when asking for advance rent. If you use your own, make sure it’s clear from which date they must start paying month by month.
Three months is not much for advance rent if there is a problem with their credit or something.
Thank you very much for taking the time to comment. It is much appreciated.