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Original poster

Implications of a tenant wanting to make a massive rental prepayment.

61 replies

007JamesBond · 23/04/2015 15:06

I am looking to rent out my house. I've appointed an agent to manage the letting process but I will manage the property once we have a tenant as I will only be living 2 minutes from the house.

The agent has found a prospective tenant who has, without us even suggesting anything about pre-payment, offered to pay 24months of rent in advance. We don't know why he wants to do this. He says he will be based abroad for some of the year in a tax haven with the house being used by friends and family when he is not there.

Can anyone give me any advice about this, please? I'm wondering why he would make this offer, and I'm curious as to what implications this has on the rental contract, particularly regarding break clauses and our eviction rights.

OP posts:
Higgle · 23/04/2015 16:47

Cannabis farmer?

fairgroundsnack · 23/04/2015 17:19

I don't think that this is uncommon where you have someone resident overseas - it might be to head off any requirement from you that he provide a guarantor. He might also really like the place and be using this as a way to get you to accept his offer.
I don't think prepayment of rent affects your ability to break the lease or evict as long as the lease is drafted properly. You would obviously have to refund the prepaid rent in certain circumstances.

base9 · 23/04/2015 17:23

Define 'friends and Family'. Who is going to be living there?

What does your estate agent say about it?

RitaCrudgington · 23/04/2015 17:23

Money laundering.

(Disclaimer - I've just done my work training on money laundering so I see it everywhere)

exexpat · 23/04/2015 17:23

Six months in advance would be normal for someone coming from overseas so without a UK credit record or guarantor. But 24 months sounds odd, and the suggestion that friends and family would be using the house would ring alarm bells to me.

I would worry that he planned to do something dodgy - cannabis farm, sublet to multiple tenants etc. I would definitely not want unknown people who are not party to the rental contract to be living in my house. Not sure about the legal implications, though.

LadySybilLikesSloeGin · 23/04/2015 17:25

Subletting, maybe. Means you don't get a say in who's living in your house, which isn't ideal for you.

MrsBertMacklin · 23/04/2015 17:26

Money laundering my first thought, too!

Original poster
007JamesBond · 23/04/2015 17:27

I posted the same post on MSE and everyone on there seems convinced it's someone planning to do some "indoor farming". Is that really this common? It's a big house with a big rent - he would need to sell a lot to get his money back.

I agree regarding these other people - it is a definite concern and I was wondering if it might affect our insurance if people who aren't named tenants use it.

I suggested money laundering to DH who (with ££'s in his eyes) said that does that really matter? We can't prove that he is and we are not the ones breaking the law. I know, I know...

OP posts:
LadySybilLikesSloeGin · 23/04/2015 17:32

You'd be aiding and abetting if the tenant is money laundering though. You'd need to check with your insurance policy about subletting. I'd be worried that they are not vetted etc. The income generated by indoor farming is £££££££. They would grow a lot and make a lot rather quickly as the plants don't take too long to grow.

LadySybilLikesSloeGin · 23/04/2015 17:32

Watched that on a TV doc, before anyone asks Blush Grin

Theknacktoflying · 23/04/2015 17:36

If it smells fishy it is fishy ...

  • why would anyone pay 24 montns rent upfront?
  • He is 't going to live there but friends are ...
Original poster
007JamesBond · 23/04/2015 17:39

I know. I want to run, but DH wants to proceed through to references stage. I reckon that if he's dodgy he can get anyone to say whatever he wants about it. Won't be worth the paper they're written on.

OP posts:
Theknacktoflying · 23/04/2015 17:43

Who is going to be names as the primary tenant? If he is and he is out the country, there is little that can be done if you need to evict/serve him papers ...
What are you going to do about a deposit?

firesidechat · 23/04/2015 17:44

I asked a similar question on a forum, but from the tenant's point of view. My daughter was trying to rent in a heated rental market and had the cash. The general consensus was that landlords would think she was either running a cannabis farm or brothel. So we knocked that plan on the head. Grin

Funnily enough she then lost a flat to another prospective tenant with no guarantor, inadequate warnings, but the ability to pay 12 months rent up front. Looked dodgy to me and may bite that landlord on the bum.

HeyDuggee · 23/04/2015 17:44

References for whom? The person who won't be living there and is overseas? So you can't acually get into the property to do an inspection or a repair because he won't be there to give permission but will have random strangers there.

Who could be trashing it. And a deposit won't even begin to cover the damage possibly done and he will be overseas and can't be taken to small claims and he'll claim you agreed other tenants could live there verbally... Unless you are renting a flat in London to a foreign millionaire, run!

firesidechat · 23/04/2015 17:47

I probably should have added that I wouldn't do it op. You won't have a clue who is actually living there and will almost certainly regret it.

Viviennemary · 23/04/2015 17:51

My first thoughts were sub-letting and also your landlord's insurance. With people coming and going. I wouldn't be happy with this arrangement tbh. I think you should be very wary. As others have said you won't have a clue. And if there is damage how will you know which particular person is responsible. No don't.

Original poster
007JamesBond · 23/04/2015 18:07

Surely the tenant will ultimately be responsible for all damage? I accept that people who come and go don't look after property because they don't know how it works.

He wants to pay 1.5months as deposit. He also wants to give us £1,000 as a holding deposit so we don't show anyone around until his wife sees it. We haven't accepted that.

OP posts:
RitaCrudgington · 23/04/2015 18:09

You can absolutely be criminally liable if you allow yourself a party to money laundering in circumstances where something looks a bit fishy but you have no proof. The laws are absolutely lethal.

EauPea · 23/04/2015 18:10

The period over which the rent is paid does affect the notice period. You could easily find yourselves in the situation of having to give him 24 months notice .

We were in a similar situation (but as tenants), this worked massively in our favour, landlord more than happy with long term tenants, we have (a degree of) security.

Original poster
007JamesBond · 23/04/2015 18:10

BTW I'm not arguing for this guy. DH is on the fence and I want him to ditch this guy. DH is the kind of bloke who won't accept that something just "feels dodgy" - he responds to a more logical and factual approach. I'm building my case using everyone's advice.

OP posts:
Original poster
007JamesBond · 23/04/2015 18:11

EauPea - can you talk me through the legalities of us having to give him 24 months notice? How does that work?

OP posts:
firesidechat · 23/04/2015 18:13

Get him to ask on the renting/housing forum of MoneySavingSupermarket. If that doesn't convince him nothing will.

bertieboo · 23/04/2015 18:15

Is it a large house in a sought after area?

We offered this when we found the perfect country house to rent.

It also means that you know they're not going to not pay their rent! If you're worried have a break clause in the contract after 12months with 2 months notice....

avocadotoast · 23/04/2015 18:17

Mm, sounds dodgy to me. Why would someone openly admit that they won't be in the house most of the time? Do you really want to be giving him free reign to move in friends and family? He'll likely assume if you take this much rent that you're happy with him subletting to whoever.

Or, like pp have said...cannabis farm. Happened next door to my friends' old house. Made my friends' lives miserable because their house stunk of weed all the time, and the house itself was totally ruined and gutted out. Landlord must have lost a fortune.

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