Complicated rent in advance AST written by agent?

by Readers Question

3 years ago

Complicated rent in advance AST written by agent?

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Complicated rent in advance AST written by agent?

My agent created following clause in the AST where one of the tenant pays some rent in advance and other one monthly:confused

1.10 Rent : £400.00 exclusive of Water Rates and other Utilities (subject nevertheless as hereinafter provided for) per calendar month of the Term

Payable: in advance by standing order or bank transfer due on 17th of each month without any deductions whatsoever namely £400.00.
Payable: 6 months in advance the sum of £4800.00 due on or before 17th August 2015 without any deductions whatsoever.
A second installment of 3 months in advance of £2400.00 will be due on or before 17th December 2015 without any deductions whatsoever

The rent agreed between me and my tenants is £1200 pcm. Why does the AST state that rent is only £400 a month?

Do I need to challenge this with them?

Thanks

Maja



Comments

Neil Patterson

3 years ago

Hi Maja,

I am confused, you are confused and has the tenant not questioned how this works?

Ian Narbeth

3 years ago

If the rent is £400 pcm then the arithmetic looks wrong by a factor of 2! Also if there are two tenants their liability should be joint and several.
It would be better to set out a schedule of payments with the date on which they are due. It appears this tenancy has been completed so you are stuck with this badly worded document.

I find residential lettings agents cannot draft documents to save their lives. I had to construe a break clause in an AST recently. It took a colleague and I 30 minutes to be satisfied it worked (and we have over 40 years' legal experience between us). I could have drafted a better clause in about 60 seconds. (Of course they saved on useless lawyers' fees at the outset!)

Maja Gans

3 years ago

Reply to the comment left by "Ian Narbeth" at "23/09/2015 - 17:33":

Hi Ian,
Thanks for that. Just want to check if I will be able to apply to court for possesion if these tenants fail to pay their instalments on the dates stated in AST? Because it looks to me that the rent due each month is £400 not £1200 so with their initial payments they have already paid enough to cover the fix term at £400. Can I demand more payments from them or do I just need to hope and pray thay they will pay?
Will this stand in court if they dont ?

Graham Bowcock

3 years ago

I think you need to quickly go back to the agent and ask for an explanation of the clauses to make sure your understanding of what was agreed is correct. On the basis that there has been no misunderstanding and your view of what was agreed is correct then I would ask the agent to spell the terms out explicitly to the tenant and to confirm that rent will be properly paid. Whether or not you are right about what was intended the clauses are poorly drafted and the maths seems flawed. I do wonder why this was not picked up before though when the agreement was signed.

Ian Narbeth

3 years ago

Hi Maja
Seems to be a problem on the board as I posted a reply first thing this morning. Graham Bowcock is right. Get the agent to tell you specifically what you will receive and when. Has the £4800.00 due on or before 17th August 2015 been paid?

Maja Gans

3 years ago

Reply to the comment left by "Ian Narbeth" at "24/09/2015 - 14:11":

Yes, they have paid £4800 plus £400 back in August. £400 in September.
I am just worried that with 3 students and badly worded AST if something goes wrong I would have no leg to stand on.

Thanks for all replies!

Puzzler

3 years ago

I think the maths does actually add up - £4800 divided by 6 is £800 plus £400 equals £1200. It's not that complicated, it's been written this way because they're students and receive their loans termly.


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