Paying rent six months up front

[offshorematt2]

A potential tenant for my other half's flat is offering six months up front rent. The agent reckons he is from the Ukraine - maybe it's normal over there? I've no idea but it's out of the ordinary here and hence we're weighing it up.

I've seen discussion on this before from the other side i.e. the tenant is being offered a better deal to pay up front. I think the opinion then was that the landlord was probably in financial difficulty and the tenant would have no comeback if the bank repossessed.

But what about from the landlord's side? Are any of the landlord's rights being given up by accepting money up front? I *presume* that if he breaks the rules of the lease, he can still be given notice to quit as per the lease and I guess the only complication is that the overpaid rent would need refunded.

Any insights?

[klimakool]

here in stirling its very common for 6 month up front rent leases to go about, alot of chinese students at stirling uni that have got keys and never paid a penny till they go back home. so to get the keys the pay up front. they now expect this coming here, maybe he has been warned from previous visitors.

[Davel]

I've agreed a discount when the tenant offers to pay six months up front.

Less account chasing each month.

[Wings]

Is there also a Deposit paid on top of the 6 months rent up front, if not then a request should either be made for a Deposit, or one month of the rent paid should registered, protected under the Deposit Protection Scheme. I mention the same since there has been a landmark High Court Judgement, where in a similar situation/facts, the Court decided that rent up front was to be taken as the same as a security,deposit against the tenancy. Of course a LL can not issue a Section 21 Notice, earlierst date to serve the same being 4th annual monthly rental date, to terminate the tenancy.

As a LL i would take the 6months rent up front.

[offshorematt2]

Thanks for the feedback folks.

Just for clarity, there will be an additional months rent (over and above the six months) as a deposit as normal. Also forgot to say, we're in Scotland, so the Deposit Protections Scheme doesn't apply up here (yet).

Will go back and kindly accept his upfront payment today I think.

Thanks again.

[Wings]

offshorematt2 said:

Thanks for the feedback folks.

Just for clarity, there will be an additional months rent (over and above the six months) as a deposit as normal. Also forgot to say, we're in Scotland, so the Deposit Protections Scheme doesn't apply up here (yet).

Will go back and kindly accept his upfront payment today I think.Thanks again.

Correct, the Tenancy Deposit Protection Scheme is not yet legislated for in Scotland, although the scheme is being debated by the Scottish Executive, and I would expect there to be in a scheme in operation within the next 9 months.

Here is a link to the publication consultation papers, that both you and other Scottish LLs on Ph might find of interests;

http://www.scotland.gov.uk/Publications/2010/07/29...

[S6PNJ]

My current tenants moved here from overseas and as such could not get a mortgage - they were, however prepared to pay up front to show good will. My agent recommended they pay 5 months up front and the 6th (of a 6 month AST) by direct debit to our bank. I was advised that if they paid 6 months up front on a 6 month AST, I'd have to give them 6 months notice instead of the usual 1(or 2 depending on how your AST is written). Might be worth asking your agent about this - oh yes, my tenants didn't get a discount either!!

[offshorematt2]

Oh well. Thanks for all the input but just like buses, another potential tenant came along at the same time. Married professional versus a student, we ended up going with the married couple... only time will tell if it was the right decision

[arfur daley]

offshorematt2 said:

Oh well. Thanks for all the input but just like buses, another potential tenant came along at the same time. Married professional versus a student, we ended up going with the married couple... only time will tell if it was the right decision

Of course it was the right decision, students are lazy smelly bds that wont give a st about your house.

[andy400]

arfur daley said:

Of course it was the right decision, students are lazy smelly bds that wont give a st about your house.

If my recent experience is anything to go by - combined with an extreme arrogance that only students seem to master (apparently he was doing me a favour by living in my house)