Trying to find a mechanism for the first two days rent?

Trying to find a mechanism for the first two days rent?

8:50 AM, 17th September 2019, About 5 years ago 27

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I have a well funded ME student arriving on the 27th September and wants occupancy ON the 30th. He receives his funding on the last day of each month which might be the 31st.

He wants to pay the rent regularly on the 1st, if the rent is payable the day before each monthly date that gives an AST due date of the 2nd.

He will be paying the first month in advance, but I am trying to find a mechanism for the first two days, I was going to just raise a second AST which gives him the statutory right of occupation for six months, but that’s irrelevant as the main AST is for 12, the RLA didn’t like that, but not for any clear reason other than “causing problems”.

I can’t see that the first month’s rent can be increased even if the period is longer by two days under the Tenant Fee Ban rules, or can it?

Many thanks

David


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Comments

Luke P

16:16 PM, 17th September 2019, About 5 years ago

Reply to the comment left by Michael Barnes at 17/09/2019 - 16:11
The S.8 agreement part is unnecessary because (presuming the tenant does indeed pay 'on time' - as in two days after the official date), any claim for arrears under a S.8 would be gone by the time it got anywhere.

Michael Barnes

16:19 PM, 17th September 2019, About 5 years ago

Reply to the comment left by Steve Masters at 17/09/2019 - 11:09
"Sort out the odd days rent at the end of the tenancy if he wants to stay on past the 29th."

Do not agree that T can stay on; that may be interpreted as agreeing a new tenancy giving 6 months security of tenure.

Rent is due for a full month if T stays on even one day. If you are nice you can give some back.

Michael Barnes

16:21 PM, 17th September 2019, About 5 years ago

Reply to the comment left by Luke P at 17/09/2019 - 16:16The S8 words are for when rent is not paid.
I would want to be able to issue S8 G8 on the second due date, not several days later.
Almost everything in a tenancy agreement (or other contract) is to provide rules for when things go wrong, not for when things go right. Otherwise an agreements would just consist of "tenant agrees to pat the rent; LL agrees to grant a tenancy".

Michael Barnes

16:54 PM, 17th September 2019, About 5 years ago

Reply to the comment left by moneymanager at 17/09/2019 - 11:20 they said it could be a problem (undetailed) of having two tenancies. Their "thinking" appeared to be that if there were a problem at the end then getting possesion in Court might be tricky e.g. how many S21 would you need to issue as technically both would still be running.
I think they are wrong because the tenancy under the later-starting agreement would replace the earlier tenancy. It is not possible to have two tenancies between the same parties for the same property running at the same time.
What you could do is agree a tenancy for 2 days (or whatever) and agree a tenancy for 12 months immediately thereafter.
That would avoid TFA issues, but might cause deposit protection issues.
An alternative might be to agree a tenancy of 2 days and continuing monthly thereafter. This would be a contractual periodic tenancy, so you would need to issue notice to terminate the tenancy as well as S21.
(And I bet the deposit protection schemes are not set up for a daily rent!)
As seems usual with landlord legislation, it is now harder to help tenants and stay within the law.

moneymanager

17:02 PM, 17th September 2019, About 5 years ago

Reply to the comment left by Michael Barnes at 17/09/2019 - 16:54
That first two paragraphs, exactly what I was thinking of doing and just applying the deposit to the second AST, and the RLA have the begging bowl for another year!

Thanks to all.

Seething Landlord

17:15 PM, 17th September 2019, About 5 years ago

"I have a well funded ME student arriving on the 27th September and wants occupancy ON the 30th. He receives his funding on the last day of each month which might be the 31st."
Presumably he will receive his funding on 30th September so should be able to pay the first month's rent on that day, the day that he wants to move in. I would not allow him in until the rent and deposit has been paid but for subsequent months entirely agree with others that there is no reason why you should not agree with him that payment on the first of the month will not be a problem. That is precisely what we have done with one tenant who is paid on the last day of the month but needed to move in on the 28th December. The tenancy agreement still says that rent is due on or before the 28th and that would be the date to use in calculating the required 2 months arrears if a S8 notice ever needed to be served. The only danger I can see is that if you had to rely on persistent late payment of rent as grounds for eviction you could not justifiably argue that payment a day or two late by agreement established those grounds.

Michael Barnes

17:35 PM, 17th September 2019, About 5 years ago

Reply to the comment left by moneymanager at 17/09/2019 - 17:02
If you choose to go that route, then ensure that you fully understand the deposit protection legislation. There is a risk that you would not be complying with the deposit protection legislation for the first tenancy, UNLESS you clearly state "no deposit" for that tenancy.

Sharon

20:21 PM, 17th September 2019, About 5 years ago

Reply to the comment left by Jon Landlord at 17/09/2019 - 10:42
My stepson, going into 3rd year uni into normal PRS house (not student let) paid deposit (with 4 others) in July, special deal to pay half rent July & August if not occupied, moved in last week but LL & Agent have agreed to he (and others) paying in 3 instalments with student loan, not due til late September. Dad is guarantor but that has not come into play, S/son, LL & agent happy 🙂

Ian Narbeth

18:01 PM, 19th September 2019, About 5 years ago

David
I think you are over-complicating this. You simply say the tenancy starts on 30th September and that rent is payable on the 1st (or 2nd) of every month at the rate of £X per month. You then charge either (a) 12/365 x £X per day or (b) £X/31 per day for the initial period. You then collect rent for 30th September (and 1st October if rent is due on the 2nd of the month).
I don't think TFA comes in to it. Under the Act you cannot charge more for earlier periods and then reduce the rent but you are simply charging the same amount per month and just apportioning it for the first month.

Kate Mellor

9:07 AM, 20th September 2019, About 5 years ago

Reply to the comment left by Michael Barnes at 17/09/2019 - 16:19
Just for information a tenant’s six month’s security of tenure only exists once. Legally they’ve already had the 6 months provided for in statute, so any new tenancy created following the written one would be a monthly periodic.

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