My new tenant has paid first months rent and deposit and then decided to pay another 11 months upfront as they do not have a UK guarantor. The money is not showing as paid. I seem unable to change contract re upfront monies as he had paid the first months rent and deposit before I had the chance to edit it to reflect upfront payments. What can be done.
Are you using OR Rent collection service, or has this additional rent been paid directly to you?
Using OR for collection
I don’t use OR rent collection so do not know how pre-payments show, however you do not need to change the contract. They have agreed monthly payments, and have simply paid early. This does not need to change the contract.
Hi @Jill4,
It doesn’t look like we’ve received these funds yet - I can see you’re in touch with our customer service team who should be able to assist in locating this payment.
If you are planning to accept the lump sum rent payment, you will need some documentation and acknowledgement from the tenant that makes it clear that that the funds are being accepted as rent for months x to y and that the period of the tenancy remains monthly. Without this there is a risk that it could later be interpreted as an unprotected deposit and subject to a penalty. If possible ensure this is an addendum to the tenancy agreement.
You should also be aware that when the Renters Rights Act comes into force next year, you may have to refund any unused rent in advance.
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