‘Rent in advance’ is not an accurate expression?

‘Rent in advance’ is not an accurate expression?

0:01 AM, 3rd February 2025, About 6 days ago 28

Text Size

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


Share This Article


Comments

Landlord Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:56 AM, 4th February 2025, About 5 days ago

Rent in advance is no different to a lease term. Please can the law makers leave contract payment terms alone!

Some tenants want to agree a fix term of say 12 months occupation in the contract for a reduced total contract value. Why should the parties to such an agreement not be allowed to agree a contract payment for the whole period?

This is no different to buying a flat for 50 years, the 'lease premium' is paid UPFRONT to cover 50 years occupation.

I fear the government is being asked to nationalise our property. Hope the MPs are sensible and be respectful of our private property rights.

Reluctant Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:28 PM, 4th February 2025, About 5 days ago

Reply to the comment left by Peter Merrick at 04/02/2025 - 09:11
the next round of rent reviews will be making it very clear to my T's that a rent increase will be applied from here on in on an annual basis.

It's not a case of if but by what amount I deem is necessary. All are under the market rate, so any increase will still reflect this. I will only up it to market rate when a current tenant leaves.

The irony of this is that keeping it slightly below market rate ensures there is very little turnover. Many of my T's simply could not afford to live anywhere else in the same area as it is cost prohibitive. Local rents are more for a studio/shared house than I charge for a one bed flat. Add to this, most are pensioners and long standing benefit recipients with no money/savings/no guarantor, so I doubt they would ever find another LL to even take them on. Post RRB this will be impossible as referencing gets tighter and tighter....

I might have to change my job title to private retirement accommodation provider...

Peter Merrick

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:53 PM, 4th February 2025, About 5 days ago

Reply to the comment left by Reluctant Landlord at 04/02/2025 - 09:19
Exactly my point, they have a captive audience and usually below actual cost, so they automatically put up the rent each year, unlike a lot of private landlords.

Jason

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:22 PM, 4th February 2025, About 4 days ago

Seething Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

19:35 PM, 4th February 2025, About 4 days ago

Reply to the comment left by Jason at 04/02/2025 - 16:22There is nothing in that article to support the view that rent for the "final period" of the tenancy taken at the outset is anything other than a deposit in disguise.

TheMaluka

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:20 AM, 5th February 2025, About 4 days ago

Reply to the comment left by Seething Landlord at 04/02/2025 - 19:35
A deposit can be used for rent or dilapidations. Rent in advance can only be used to offset rent.

Seething Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:27 AM, 5th February 2025, About 4 days ago

Reply to the comment left by TheMaluka at 05/02/2025 - 10:20
If "rent in advance" meets the definition of a deposit (in simple terms - security in respect of a future obligation), that's what it is.

What it can be used for depends on the terms on which it is paid/accepted, which should be specified in the tenancy agreement and in the prescribed information.

Jason

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:35 PM, 5th February 2025, About 3 days ago

Reply to the comment left by Seething Landlord at 05/02/2025 - 11:27
I can see why this area appears grey but to me it’s clear that you can choose when to apply the rent in advance payments as I have previously said as long as TA says so and its consumed in the fixed period. It doesn’t say it needs to be consecutively. So I still stand by what I and Shelter have said.

“A tenancy agreement must not ask you to pay more rent in the first month compared to a later period (the rent instalments should be split equally across the first year of the tenancy). A landlord or agent could reasonably ask you to pay more than one rent instalment at the start of the tenancy where the tenancy agreement does not require this as a single rent payment. For example, if the rent was £400 per month, a landlord or agent could ask you to pay three months’ rent upfront (3 x £400 = £1200) but your tenancy agreement could not make you liable to pay £1200 in the first month and then £400 every month after that.”

https://assets.publishing.service.gov.uk/media/5f745d69d3bf7f287328e5a5/Tenant_Fees_Act_-_Tenant_Guidance.pdf

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More