‘Rent in advance’ is not an accurate expression?

‘Rent in advance’ is not an accurate expression?

0:01 AM, 3rd February 2025, About 2 weeks ago 28

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I am always frustrated by the expression ‘rent in advance’ which is now part of discussions around the Renters’ Rights Bill. Rent is due at the point of use, i.e. the day a tenant starts to ‘use’ the property on the date stipulated in the tenancy agreement. You would not walk into a shoe shop, buy a pair of shoes and then say that you will pay for them, when you have worn them for a month!

Surely, this should apply to rent in exactly the same way? Tenants are essentially paying for the use of a property, month by month, and therefore payment is due when they begin using it.

The expression ‘rent in advance’ somehow sounds as though landlords are getting money up front before they are entitled to it, and promulgates the current view that landlords are the greedy scum of the earth, which is so frustrating and dispiriting.

I wish we could come up with a better expression, maybe to say that rent falls due ‘at point of use’ or similar? Any ideas from the Property118 community?

Thanks,

Annabel


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Jason

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9:16 AM, 3rd February 2025, About 2 weeks ago

Not sure I get your point. To me rent in advance only applies if you are asking for more that 1 months rent upfront otherwise its just called rent.

Depends how you setup your tenancy.

You can setup so a tenant pays 2 months in advance. The first payment covers the first month and the second payment covers the last month. (I prefer this method, as it stops tenants assuming we can take the last payment from their deposit if they leave)

You can setup so that the two months in advance rent covers two months of payments in succession. The it just becomes rent payments.

I can’t say that I have ever setup a TA with it in arrears like you suggest with your shoe example that’s just bad business practice.

Example tenant pays rent on 1st of month and that rent is to cover that month not the previous month.

Reluctant Landlord

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11:12 AM, 3rd February 2025, About 2 weeks ago

the reality is 'monies due for the rental period of one month ahead', but shortened to 'rent in advance'.

Yes I agree it gives the impression of paying for rent before you 'use' it, but that's exactly the case for everything else in life from buying and apple to buying a holiday. You don't pay for either after you have purchased the product or received the service - you pay ahead.

The fact that the RRB says the tenant has to sign the contract FIRST before you can then request payment of the first months rent is ridiculous.

By default of the tenant already agreeing to rent the property BEFORE the agreement is even signed (by way of paying a holding deposit - and the landlord having done and paid for the credit checks and tenant having accepted receipt of all pre-contract info sent to them like the gas cert/elec cert EPC etc AND the LL issuing the tenant with a letter stating that a TA is going to be offered), that would be enough to show that both sides are committed.

Wonder, if after the RRB, it is going to be necessary for the LL to make clear at the point of an offer being made that there is an expectation that after signing the AST the tenant must then show that the first months rent has been been paid before the keys are released? This is no different to a solicitor giving you the keys to a new house ONLY once the money has been confirmed as cleared in their holding account from your bank.

Denise G

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11:19 AM, 3rd February 2025, About 2 weeks ago

Reply to the comment left by Jason at 03/02/2025 - 09:16
Some years ago we were pursuaded by our local council to let one of our houses to a girl who was living in a car with her newborn, after her father had thrown her out of the family home(!) - and we had to fight (and suggest they might need to look elsewhere) to persuade the council that we would not accept their 'usual practice' of paying us her rent 4 weekly in arrears.

Graham Bowcock

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11:27 AM, 3rd February 2025, About 2 weeks ago

Jason
The tenancy agreement must accurately reflect how the rent is being charged. There are no rules at the moment as to rental periods. You can ask for rent for 6 months, 12 months or any period that the parties agree. However, the tenancy must be clear. You can't have a monthly rent in the agreement and then ask the tenant to pay, say, 6 months rent up front.

Your idea of taking the last month's rent at the start falls foul of deposit rules (assuming you are taking a deposit too). You cannot breach the 5 week rule on deposits and anything above the agreed rent has to be protected. This is well documented. Therefore taking "the last month's rent" is likely to be illegal and should be avoided.

Jo Westlake

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11:32 AM, 3rd February 2025, About 2 weeks ago

Rent in advance is only really used by foreign applicants who can't provide a UK guarantor, people with CCJs or IVAs who know they will fail referencing, people using Trust Funds where the admin fees for withdrawals are onorous or criminals.

The first three categories all have perfectly valid reasons for lump sum advance payments. To outlaw such payments will seriously harm a great many people in those groups.

Blodwyn

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11:36 AM, 3rd February 2025, About 2 weeks ago

Get copper bottomed guarantors.

Darren Peters

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11:48 AM, 3rd February 2025, About 2 weeks ago

If the Renters Rights Bill specifies rent in arrears is it possible to specify the rental period of 1 day so the tenant pays daily in arrears?

Graham Bowcock

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12:03 PM, 3rd February 2025, About 2 weeks ago

Reply to the comment left by Darren Peters at 03/02/2025 - 11:48
I don't think the suggestion is for rent to be paid in arrears, merely that the payment of rent has to be contemporaneous with the start of the tenancy - i.e. you cannot collect rent in advance of the tenancy start date, but can collect it at the start.

moneymanager

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12:47 PM, 3rd February 2025, About 2 weeks ago

Reply to the comment left by Blodwyn at 03/02/2025 - 11:36
A copper bottomed' guarantor is someone who can pay on demand i.e. Now.

Jason

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13:10 PM, 3rd February 2025, About 2 weeks ago

Reply to the comment left by Graham Bowcock at 03/02/2025 - 11:27
Never thought I say this but strangely enough Shelter agree with what I do…

“Some landlords ask for rent in advance to cover rent both at the start and end of your tenancy.”

https://england.shelter.org.uk/housing_advice/private_renting/rent_in_advance

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