3 months periodic after 3 months rent in advance?

3 months periodic after 3 months rent in advance?

10:02 AM, 2nd December 2021, About 2 years ago 5

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Hi, Can anyone advise me, please?

I use 6-month ASTs with monthly payments which would rollover to monthly periodic, but I’ve had some tenants offering 3 months rent in advance at the start of a 6 month shorthold tenancy.

My question, I think I’ve read somewhere that if I accept, the periodic would then become 3 monthly!

Any ideas?

Many thanks


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Neil Patterson

10:10 AM, 2nd December 2021, About 2 years ago

Hi, Under the Deregulation act if you take 3 months rent in advance you won't be able to charge rent again until the 4th month, or it will become a prohibited payment.

Therefore, my understanding is the periodic will just be a normal periodic

Rob Crawford

10:13 AM, 2nd December 2021, About 2 years ago

Just make sure the three months rent is received as 3 sepeartely monthly payments. Amend the AST to reflect monthly payments received for example 1st Jan, 1st Feb, and 1st March the next payment will be 1st April. Or words to that effect. Have the payments transferred into ipur account as three payments.


12:04 PM, 2nd December 2021, About 2 years ago

In a case like this we would amend the Tenancy Agreement to say something along the lines of, payment of X for months 1st Jan-31st March, followed by rent pcm for 1st April to 30th June, payable on the 1st of each month, and thereafter the tenancy continues as a monthly periodic.


14:43 PM, 2nd December 2021, About 2 years ago

Neil, having taken a look at the afore mentioned Deregulation Act (DA), I can't understand the basis of your comment.
Would you like to provide the section reference and link?

The closest I can see in the DA is calculation of refund of overpaid rent.

Perhaps you are thinking of the Tenant Fees Act?

Technically, AST is legally defined as a minimum fixed period of 6 months. It will only become periodic after 6 months. Frequency, breakdown of payments is contractual agreement, so if 3 months up front subsequent could be another 3 months (effectively quarterly in advance) or revert to monthly rent in advance.

Graham Bowcock

11:56 AM, 4th December 2021, About 2 years ago

Reply to the comment left by at 02/12/2021 - 14:43I suspect he means there's a danger of the advance rent being treated as a deposit (which if not protected would be illegal). Some landlords try to circumvent the rules by taking advance "rent" then charging the monthly rent from day one. This is in breach. If a landlord takes three months rent at the start, then the next payment is due at the start of the fourth month.
You can charge rent for any period you agree with the tenant, as long as it is clearly rent. The tenancy agreement should be appropriately worded so as to make it clear what the terms are.

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