Sensible solution – but is there any small print?

Sensible solution – but is there any small print?

10:48 AM, 14th June 2021, About 2 months ago 3

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I have a tenant moving in next week that the Council are paying the deposit and Rent in Advance (RIA) for. There is a deficit of £20.01 per month, which normally would require a top-up to be paid directly to me from the tenant.

In this case, the Council have stated they will pay this top-up for the first year on behalf of the tenant. I asked them to pay the first 6 months (£120.06) upfront with the Deposit and RIA then after the first 6-month term pay the next 6 months.

They have just sent through a payment for the whole 12 months’ top-ups.

Raises the question (always suspicious) do I accept this as it’s clearly easier for the Council to do this in one hit, or do I reject this and ask to pay back the second 6-month payment?

In being seen to accept the second 6-month payment in advance of the end of the first 6-month contract term, am I falling into a trap of accepting rent 12 months in advance then getting screwed over in some way if the poop hits the fan and a day after the initial term I need to evict (for whatever reason)?

Many thanks

DSR



Comments

by Judith Wordsworth

12:59 PM, 14th June 2021, About 2 months ago

Are you only giving a 6 month AST? In which case don't forget to serve the s21 when they move in.

The Council may only do 12 month AST's under their funding the deposit and RIA schemes. Are you drafting your own tenancy agreement or is the tenancy under one of the LA's schemes?

by DSR

13:47 PM, 14th June 2021, About 2 months ago

initial 6 month term AST then periodic contractual after. Council happy to accept this as they haven't said they wont and are now progressing payment. They have said contract with LL and tenant and nothing to do with them.

Seems harsh to issue as S21 now - may do later as a 'backup' as long as expiry of it is past the 6 month initial term date.

May give tenant wrong impressions straight away as they think I want them out as they just move in!

by Ian Narbeth

14:56 PM, 14th June 2021, About 2 months ago

Reply to the comment left by Judith Wordsworth at 14/06/2021 - 12:59
Judith, you cannot issue a s21 "when they move in". You have to wait at least 4 months.

DSR, the overpayment is no problem. I suggest you set up another account and then do a standing order for £20.01 every month between the accounts to keep track of the payments. If the tenancy does not last 12 months you will have to return some money tot eh Council.


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