6 month periodic tenancy?

[ParkAndLickIt]

We have just come to the end of our first 6 months tenancy.

We paid the 6 months rent in advance as well as the deposit (protected).

The standing order was set up to pay the ongoing monthly rent as from today as per the tenancy agreement.

We had a call from the agent today asking where the other 5 months rent was?

I explained that the T.A. was set out as ongoing monthly payments (they were apparently unaware of this), LA said the LL would prefer 6 months in advance again.

It's not an issue for us to pay in advance, but would I be right in thinking that this would then form a 6 month periodic tenancy and therefore offer us greater security, rather than the usual monthly periodic tenancy.

I'm aware that this payment coul also be construed as a 'deposit' against further rent charges and as such could cause issues for the LA if it is not protected.

I don't know about the deposit aspect, but yes, if you pay 6 months upfront you can't be asked to leave during that time. If you pay monthly you're only ever two months away from a section 21.

If you're worried about the security of your tenancy, it is possible to get a AST (I think it's called) fixed term tenancy for 6 months or more, without paying the whole six months rent in advance. In fact I think that's what most people do. No doubt the LL would 'prefer' to have six month's money from you in advance, but why should he have it? It is not the norm, and he is being a bit greedy I think. Wouldn't you rather pay monthly as per your tenancy agreement? If you go month to month that is called a periodic tenancy, landlord would have to give you 2 months notice to leave, but equally you would have the flexibility of being able to give one month's notice if you wanted to move.

But I think the type of contract you have and whether you pay monthly (the norm) or a lump sum in advance, are two separate issues. I'd suggest you post on www.moneysavingexpert.com or www.landlordzone.co.uk as they have a lot of very knowledgeable people giving advice on there.

This is assuming you are in England or Wales, as the law is different in Scotland (and Northern Ireland I think).

Oh and it might not be the landlord that 'prefers' it. It might be the agency themselves. Sometimes when getting several month's rent in advance they keep the money in their own account, doling it out monthly to the landlord. The landlord may know nothing about it. One letting agency I was in contact with (didn't use them in the end) freely admitted this! It helps them with their cashflow I suppose, but seems a bit dodgy. And if they went bust during the six months, what would happen to the money?

I see you have the money to pay in advance and don't seem bothered about it, OP, but I would suggest you get some good advice from maybe the websites I suggested, or Shelter or someone else.

I have a tenant who has paid six months in advance and that is EXACTLY what is happening! I have indeed confirmed that the money is ring-fenced should the agency go bust, although they are a big one.

their 'systems' do not allow anything else it seems. He's a good tenant, they are a good agency and with interest rates so low it is not worth arguing.

If I was paying 6 month in advance I'd want a 5% discount for financing some else's operation.

how do you work that figure out?

the 6 months in advance is for those who cannot pass referencing otherwise - e.g. those with no credit history, self-employed people with a variable income and so on.

usual reminder that renting out property is not a crime nor immoral earnings. I note no complaints about mortgages, which is another way for people to make money out of property.

I don't think anyone said that specialsubject. And I do realise that sometimes tenants who are self-employed etc, like you mentioned are asked for rent upfront initially, that's quite common I suppose.

However I don't think it's fair in this case that the landlord/agency, having given the OP a tenancy contract specifying monthly payments after the initial six months, are now attempting to back pedal on this and demanding another six months upfront. And then to ring up the OP to say she is in arrears because they only received one month's rent is ridiculous. Sounds like the agency are not very organised, and didn't even know what paperwork they sent out!

And I think the OP is under the impression that the only way she can get a fixed term is by paying upfront again, which shouldn't be the case.

My suspicion is that the LA is after a nice little earner. New tenancy agreement drawn up = ridiculous admin fee.

Maybe (LAs do that, don't they?), but I think the OP has said she would actually prefer fixed term.

quite a few people hold that opinion, nadia !!

it does indeed seem strange that the agency have changed their minds, but I suspect incompetence which is the usual problem. And yes, a new tenancy agreement does indeed mean a fee on both sides.

best bet for the OP is to contact the landlord.

Agents phoned this morning, presumably someone else has pointed out their incompetence to them.

We are now back as per tenancy agreement, monthly payments and in active discussions with landlord as to a new, very much extended, tenancy.

Arrears letter has been removed from file

excellent. Incompetence as expected!!