Student paying year up front?

Reply to the comment left by Jo Westlake at 03/02/2025 – 11:20
You need to be careful not to fall foul of the deposit rules.

There’s no issue with the rent period being six monthly, or even annual (at the moment), but if you take 6 months’ rent at the start, then rent monthly, the excess is treated as a deposit. Besides the legal need to protect it, it will be unlawful as more than 5 weeks.

Reply to the comment left by Graham Bowcock at 03/02/2025 – 13:37
I’m aware of that. The problem is trying to do something that works for the tenant and is legally compliant.
I guess the main issue is the difference in “requiring” and “accepting”. I don’t require 6 months rent up front but if the tenant chooses to transfer it into my bank account how do I not accept it?
Lots of tenants pay several days early because they like to make the payment on pay day, not the date the tenancy agreement requires. How many days in advance is going to be OK and how many days become a problem? This whole policy hasn’t been thought through properly and takes no account of human behaviour.

Reply to the comment left by Jo Westlake at 03/02/2025 – 16:29you could always reply to her that the contractual obligation in the AST requires her to pay monthly, but if she chooses to pay anything more so the rent is always in ‘credit’, than she can do.
That way you don’t fall foul of the current TFA

Reply to the comment left by Graham Bowcock at 03/02/2025 – 13:37
As per the other post on “rent in advance” I don’t believe this advice is correct. Please point to legalisation where this is not allowed. Rent in advance and deposit are separate and can co exist. You can take a deposit and 6 months rent in advance if you like as long as the TA is clear what the money is for. Shelter even confirm that and so does this article…

https://www.whitegates.co.uk/guides/landlord/can-i-ask-for-rent-in-advance/

This is what the RRB want to cap at no more than 1 month.

Reply to the comment left by Jo Westlake at 03/02/2025 – 11:20
The “rolling rent in advance system” you suggest has been illegal for over 5 years. Under the 2019 Tenant Fees Act, you may ask for 6 months rent up front, but no more rent is due until the end of that 6-month period.

Reply to the comment left by Jason at 03/02/2025 – 19:37
The legislation you are seeking is the Tenant Fees Act 2019.
The rolling rent you describe would be classed as an illegal deposit – let’s be honest, that’s exactly what you are using it for!
You are currently able to request the rent upfront for the entire 6-month tenancy period, but at the end of the first month, what rent are you demanding, given that your tenant doesn’t have a contract after month 6 and has paid the rent for his entire rental contract period?
What do you do when the tenant hands in his month’s notice to quit? Do you repay the outstanding rent? Do you see now how this would be considered a deposit?

Richard, you are effectively asking us to advise you on legislation that is still going through Parliament. Who knows what will be in the final Act?
However, while I agree that the legislation probably won’t be retrospective (so if your agreement is signed before it is enacted, you may be fine), you might want to look ahead: at the end of this student’s first year, it is unlikely that you will be able to issue a Section 21, so the tenancy will automatically move onto a rolling tenancy. At this stage you will definitely not be able to ask for a further year’s rent in advance. So effectively, by entering into an agreement this year, you are giving a tenancy to someone you know will fail referencing, and without an effective guarantor, in the hope that they will leave at the end of the year.

Reply to the comment left by Steve Rose at 04/02/2025 – 08:50
Firstly I don’t request 6 months “rent in advance” but I legally can if I want to and have done on one occasion before. A divorcee got their settlement and wanted to pay in advance to make sure they had security and it didn’t whittle away while they got their priorities straight. That is the maximum. If I charge £1,000 per month I can do a 1 year AST with a 6month break clause. Tenant pays £7,000 on 1st Jan £1,000 is protected as deposit with DPS. AST states that 1st Jan – 30th Jun is covered by 6 x £1000 rent in advance payments. I give receipt of payment for this period. The tenant will not pay the next £1,000 until 1st July or they can exercise the break clause and leave.

Please explain what part of the above is currently incorrect?

Reply to the comment left by Jason at 04/02/2025 – 14:16
Apologies just to add I did this in 2017 so if this approach has changed in the 2019 legalisation then I stand corrected.

Reply to the comment left by Jo Westlake at 03/02/2025 – 16:29
I have a tenant who always pays 7 days before the due date of the 28th day of the month and pays 2 weeks early at Christmas.
She dose it because it suits her salary schedule, she gets paid every four weeks.

She has been a tenant for 20 years and has never missed a rent payment.

And yes she pays a market rent .