Quick question - how much discount for paying 6 months rent up front?

[tedglenn]

Just about to do the deal on a rental property. Was originally on at £1650 per month. I agreed £1600 but in hindsight, I think I could have got more off, as due to our exchange constantly being delayed, the agents have still been marketing the property and had zero interest in the 2 weeks since. I'm not one to go back on my word, so the original agreement stands, but we are quite happy to pay the first 6 months rent up front, as we have the cash, and it's one less monthly admin task to worry about.

So, what kind of discount do you think we should ask for in exchange for full payment up front (6 months)? Is it worth much at all -the agent seemed not to think so when I mentioned this previously...

I didn't know you could get a discount for paying upfront. I do know a few people who have paid upfront where for legitimate reasons they could not provide references.

agree with vj32,but worth a shot.Nothing to lose I dont think.

Has the ll done a lot of work to the flat recently,and might be glad of the 6 months rent up front,cashflow wise?

Hi, I negotiated like that and managed to write off 75£ PM.

I've paid 6 months up front a few times (worked overseas so no references available) and I have never had a discount or known it to be a reason for a discount.

However, its worth a try!

My thinking was that paying upfront means he has peace of mind that we're not going to default on the rent, and getting ~£10K lump sum in your bank account always feels nice, so together that might be worth a few hundred to him.

Anyhow, I told the letting agent to offer it to the landlord in return for a small (I didn't specify amount) rental discount on a take it or leave it, no problem either way basis, and she said she'd let me know what he says. Will let you know too!

I have offered this myself once or twice. Unfortunately for me there was someone else willing to pay the full rent so it didn't work!

But did you know that offering several months up front is apparently a red flag to a lot of landlords - apparently if you do this it means you are about to start up a cannabis farm in the property. Yeah I know it sounds crazy but thats what the posters on landlordzone seem to think - some of them even say they wouldn't rent to anyone offering to pay upfront. Apparently tenants should know their place and paying upfront should only be at the suggestion of the landlord/letting agency.

Although this seems ridiculous, it has put me off doing this again.

NadiaWadia, came across the red flag issue when i rented previously. I wanted to pay up front as I had the cash and wanted to make sure I didn't spend it. Landlord turned me down flat and wouldn't rent to me full stop let alone offer a discount. His reasoning behind it was because of the stories he'd heard about Cannabis Farms

That's very interesting about the red flag!

I have to say that it would depend on what outgoings the LL has as to whether or not you'd get a discount - my house in the UK is rented out and it barely covers costs as is, so 6m upfront wouldn't get you any discount. Mind you, now I know about the red flag, I wouldn't do it at all either!

Should also point out that a friend of mine did have a cannabis farm in one of the properties she was a joint owner of - they only found out because there was a fire, and when they went to investigate, there was only a microwave oven, a tv and shit loads of soil marks in the house - the hydroponic system had somehow blown the circuitry and caused the fire, and the tenants had put it out but had also shipped their stash out before the agents managed to get there. So knowing any useful red flags is helpful to me!

oh my! A cannabis farm wasn't my intention at all! Hope the landlord won't see it that way

Oooh, we rented a house last year when we were doing building work, and paid six months up front. (We are self employed, and don't have an external accountant, so would've had trouble with references.)

I thought it made us seem more respectable, but apparently not!

Thumbwitch, that really wasn't my intention to start other landlords like yourself thinking of the offer of rent in advance as a red flag. Rather I was pointing out how stupid it was!

OK, some prospective tenants may be planning on the cannabis farms, but others, like tedglenn, Tigerbomb and myself are perfectly honest and respectable. If the tenants are checked out properly with references etc (as a landlord should be doing anyway) then surely its easy to tell which kind of prospective tenants you are dealing with!

Using this as a 'red flag' seems very rigid, and just lazy thinking, really.

I wouldn't worry, I have long term tenants who are perfectly fine.
But you don't have to be rude either.

I wasn't trying to be rude to you, just talking about those on landlordzone!

Well, the letting agent called back and said the landlord would prefer to be paid monthly anyway. Which is fair enough!

I paid 2 years upfront and got a discount of 1450 a month down to 1000 a month. The landlord would much rather have had the money in his pocket.

NadiaWadia,the problem with what you posted ,imo,is that a lot of landlords never see the tenants.And I would imagine,that some potential cannibis growers have a clean slate as regards checks and references.
personally,this thread has now made me think about us offering the 6 months up front again.