Interest on up front house rental payment?
Discussion
I have recently rented a house and as a gesture of goodwill and intent, put 12 months rental payment with the letting agents. It has just occurred to me that the interest on that amount (rather more than £10000) is not appearing anywhere. I have phoned the 12 year old kids running the letting agency who promise to call me back, but surprise surprise, never manage to.
Who does get the interest? Its not mentioned in the rental agreement, but given the appalling service they provide, I'm damned if I'm just going to ignore it if I should have it.
Any thoughts?
Who does get the interest? Its not mentioned in the rental agreement, but given the appalling service they provide, I'm damned if I'm just going to ignore it if I should have it.
Any thoughts?
http://www.which.co.uk/money/mortgages-and-propert...
Could explain where the interest is going depending on the protection scheme being used.
Could explain where the interest is going depending on the protection scheme being used.
My daughter and son in law did the the same for 6 months up front. They did it to secure a flat as they were both students.
Like you the agents were useless and when questioned about interest didn't answer nor would they say if they paid it all to the landlord or paid it to them monthly.
As they wanted the flat they didn't make a fuss. My guess is that the agents pocketed the interest.
charltjr said:
http://www.which.co.uk/money/mortgages-and-propert...
Could explain where the interest is going depending on the protection scheme being used.
That is the deposit for the property, typically 1 months rental. I paid that as well, and as I'm renting out my own home to a tenant understand that bit.Could explain where the interest is going depending on the protection scheme being used.
My query is regarding the whole years rent paid up front!
andygo said:
That is the deposit for the property, typically 1 months rental. I paid that as well, and as I'm renting out my own home to a tenant understand that bit.
My query is regarding the whole years rent paid up front!
In a few weeks it will only be eleven months rent on which to attract interest. Then a short while later only ten months etc...My query is regarding the whole years rent paid up front!
PurpleMoonlight said:
What a stupid answer.
You have the lease, I suggest you look in it to see if there is the provision for interest on any rent paid in advance.
I'll give you a clue, there won't be.
In response to a stupid question. Thanks for your help, it was invaluable. And just because its not in the rental agreement doesn't mean its irrelevant.You have the lease, I suggest you look in it to see if there is the provision for interest on any rent paid in advance.
I'll give you a clue, there won't be.
Centurion07 said:
The bit where he said "as a gesture of goodwill" i.e. he didn't have to provide the 12 months up front, therefore why should anyone other than the OP be taking the interest?
If he wanted interest he should have kept it in his bank account (or wherever).Nobody pays 12 months rent up front as goodwill, they likely have to do so because they have failed the credit check.
If you offered to put up 12 months rent to the landlord as an incentive to enter into a contract, then that is part of the consideration of the contract.
That's been accepted. If you want anything else to be part of the contract for doing this, for example a discount for paying 12 months up front nominally for the benefit for the landlord as they may be able to get a bit of interest, then you should have put that forward before the offer was accepted.
If nothing's been accepted yet, then you can of course negotiate what you wish.
However, if it were me, finding that a tenant had paid 12 months rent up front, and geared myself up to accept that, if you moved the gaol posts, which is effectively a discount on the rent, as he would be paying you an amount back, it may cause me to reconsider.
That said, 12 months rent up front is a great incentive for the landlord. As one myself, all things considered, you'd get my house over Joe Bloggs.
Unless something else reared it's head which may make you look like a problem.
Like asking me for interest.
That's been accepted. If you want anything else to be part of the contract for doing this, for example a discount for paying 12 months up front nominally for the benefit for the landlord as they may be able to get a bit of interest, then you should have put that forward before the offer was accepted.
If nothing's been accepted yet, then you can of course negotiate what you wish.
However, if it were me, finding that a tenant had paid 12 months rent up front, and geared myself up to accept that, if you moved the gaol posts, which is effectively a discount on the rent, as he would be paying you an amount back, it may cause me to reconsider.
That said, 12 months rent up front is a great incentive for the landlord. As one myself, all things considered, you'd get my house over Joe Bloggs.
Unless something else reared it's head which may make you look like a problem.
Like asking me for interest.
Edited by JustinP1 on Sunday 17th August 10:20
If you paid the landlord the £10K+ as a monthly rent spread over the 12 months rather than in one lump sum, and they chose to put the money straight in the bank without touching it, do you think you would be entitled to any interest on it?
If the Landlord invested your £10K+ on stocks and shares and made £100K on it, do you think you're entitled to a share of it?
You've paid for the rent of a house for 12 months and have paid the asking rate - What happens to that money now is nothing to do with you whatsoever as it's no longer your money!
The "12 year old kids running the letting agency" haven't got back to you because they're think you're on a pi$$-take asking for interest on money that you've spent to rent something! (I bet they've been calling you some choice names as well!).
If the Landlord invested your £10K+ on stocks and shares and made £100K on it, do you think you're entitled to a share of it?
You've paid for the rent of a house for 12 months and have paid the asking rate - What happens to that money now is nothing to do with you whatsoever as it's no longer your money!
The "12 year old kids running the letting agency" haven't got back to you because they're think you're on a pi$$-take asking for interest on money that you've spent to rent something! (I bet they've been calling you some choice names as well!).
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