3 month let paid in advance

by Readers Question

4 years ago

3 month let paid in advance

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3 month let paid in advance

I have a room available in an HMO, I have met an applicant, he is a nice enough guy, an Italian over here on a short term contract and he wants to pay in advance for the entire 3 months. 3 month let paid in advance

He wants to move in this weekend as his employers have covered his hotel until then.

I’ve checked his employers reference.

Is there a problem with accepting this money and amending the AST to suit?

I’ve been using my own AST, what should I expect to pay to have it professional checked over.

Thanks in advance for any advice.

Gavin



Comments

Mark Alexander

4 years ago

Hi Gavin

Presumably you realise that if you create a tenancy then you will struggle to obtain possession inside of 6 months if the tenant decides to stay on, regardless of what the tenancy agreement says?

Given that this will not be this persons full time residence I'm wondering whether a three month licence might be more applicable?

I'm afraid I have more questions than answers though, e.g. what is the situation with Council Tax?

If you do intend to grant a three month tenancy and take the first three months rent up front then you must be sure to document this properly and take no further rent during this period, otherwise the money will be seen to be a deposit. The case law on this is Johnson vs Old.

As for self drafted tenancy agreements, I do not recommend them. A lawyer will probably charge more to correct yours than to draft a new one which is fit for purpose. Remember, anything produced by a lawyer is guaranteed, i.e. if it fails then you can claim on the lawyers Professional Indemnity insurance.

For tenancy advice on HMO related issues, arguably the most prolific UK lawyer in this sector is David Smith at Anthony Gold Solicitors - Google him.
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Neil Robb

4 years ago

Why don't you join the National Landlords Association for what ever it cost and down load there forms plus the keep you up to date


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