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  • Buy-to-Let

    6 months rent paid up front - pros & cons?

    Hi guys,

    Would you take 6 Months rent upfront if tenant suggests it?

    I can not have longer tenancy than the 6M in this case, apparently, I would be after long tenancy, so I have mixed feelings.

    Anyone took rent upfront? positives? negatives?

    Thanks much!

    Pete

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    Hi Pete.

    Can I ask a few strange questions. Where do you operate, how did you find the tenants, where the eager to move in and what is the nationality

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    Hi Pete,

    Why does the tenant wish to pay 6 months rent up front?  It can be a red flag, as it is one of the signs that the tenant may be looking to use the property for an activity such as cannabis farm or brothel.

    The 6 months payment in these kind of cases are designed to keep the landlord at arm's length, so that the landlord has no reason to want to contact the tenant or visit the property during those six months.

    We have a video answer to this FAQ:

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    [Image: 4995468760_6be86655d4_t.jpg]
    general operations director, site owner and moderator - propertytribes.com

    We done it few times, with no problems, but it can cause a pickle with your cash flow, it your margins are tight

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    An AST can (legally...) be for 1 day, 1 week, 2months, 6 months (most common due to s21..), 12 months, 2 years...

    Why do you want a long tenancy - what advantage do you think landlord gains?

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    Thanks guys for the replies.

    The tenant was found by the letting agent, property is in a small town in Norwich, they have a kid needs to enroll to the local school. Both are self employed (hmmm) The agent is about to do the referencing on them.

    They wanted to pay 6 months upfront, it was not our idea, and agent advised that in this case the max I can have drawn up is 6 months tenancy, I of course want a longer one, so more certainty for the future.

    My dilemma is if I say I want rent paid monthly, and a year tenancy with 6m break up clause then I dont have any benefit if they move out in 6 months anyway, and I might even have to chase the rent monthly. Maybe I could tell them I will have the agent visit them twice during the tenancy, to see everything works fine.

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    Look at the person first - only then look at the wedge

    I got offered 6 mths up front today in fact . They are LHA .

    I listened to their back  story and they were honest and true and in need

    I would take them on quite happily

    A few years back I was offered the same by a posh boy in a suit

    I listened to his back story and thought you selfish arrogant son of a b****

    I didn`t take him on

    Look at the person first - only then look at the wedge

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    Jonathan Clarke. http://www.buytoletmk.com