Two months rent in advance?

Hi, in the last few years, I have stopped taking tenancy deposits in the fear of breach of compliance. Nonetheless, as a result of adopting to aforesaid practice, I have had instances, where tenants abandoned properties or left properties without giving any valid notice or they have left the property with piled-up rubbish.

I have had recent advice from a solicitor who has advised that I can take two months’ rent in advance. The first month is to be used as the first month’s rent and 2nd month’s rent is to be used in the last month of tenancy.

This will then help me to get around this issue without being non-compliant with the tenancy deposit scheme. My only concern is that this might be seen as hidden deposit taking and if the matter ever proceeded to Court then the Judge might take a different view on this. Property118 readers’ views on this would be welcoming.

Thank you,

Simon

Editors Note: All landlords are required by law to protect any deposits taken for a tenancy within 30 days of receiving the deposit or within 30 days of the tenancy becoming an assured shorthold tenancy. Tenancy deposits are capped at the equivalent of 5-weeks’ rent for assured-shorthold tenancies with an annual rent of up to £50,000 or 6-weeks’ rent for tenancies with an annual rent of £50,000 or more.

In the Tenant Fees Act 2019: Guidance for tenants. The only payments in connection with a tenancy that a tenant can be asked to
make are:
• The rent
• A refundable tenancy deposit capped at no more than five weeks’ rent where your total annual rent is less than £50,000, or six weeks’ rent where your total annual rent is £50,000 or above.
• A refundable holding deposit (to reserve a property) capped at no more than one week’s rent
• Payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
• Payments associated with early termination of the tenancy, when requested by the tenant
• Payments in respect of utilities, communication services, TV licence and
council tax;
• A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement.

In the FAQs of the Tenant Fee Act 2019 they ask:

Q. A landlord or agent has told me that I will have to pay more rent in the first few months to cover the cost of banned fees, can they do this?

A: No. Under the ban a landlord or agent cannot require you to enter into an agreement that ‘front loads’ the rent at the start of a tenancy i.e. by charging more for the first month(s) of the tenancy (although in some circumstances a landlord may expect payment of rent upfront). The amount of rent charged should normally be equally split across the first year of the tenancy. However, after the tenancy has begun, a landlord can reduce or increase your rent without breaching the fees ban if you agree to this or under a rent review clause in the tenancy agreement (provided that the rent review clause permits both a rent reduction or increase according to the circumstances).

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