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

[007JamesBond]

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.

Personally I think it sounds like he really wants the house and wants to make sure you don't rent it to anyone else. And that he wants to make sure he doesn't have to pay for any increase in rent!

Would you be happy agreeing to a 2 year tenancy. One year's rent upfront, and a break clause at 12 months? If his references check out?

The house we paid for upfront we've rented for 4 years. We live in London and just use it for weekends and holidays.

You won't know from his demeanour whether he is ok or not. I wouldn't use that as a way of making up your mind. Some of the most successful conmen probably come across as beyond reproach or no one would ever trust them. I'm not saying he is a conman by the way. I also wouldn't trust someone just because they were mature of age. I'm sounding a bit paranoid now, so will try to stop with the scare tactics.

The thing that is really ringing alarm bells is 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.

You can't vet these people can you because you don't know who on earth they are?

Bertieboo - in principle we'd be happy with a long lease. In fact it's our ideal scenario. What is odd is that all this is being offered before any terms have been discussed at all.

Yes, Firesidechat that is worrying me big time.

I know a good few people who rent in the higher end of the market (up north) and they are all asked to pay 12 months upfront so I would guess he is trying to 'outbid' any other prospective tenants iyswim. Paying up front seems pretty normal for that end of the market so your location/price might be the only reason for the offer.

Could you ask the agent what they think?

My tenancy agreements stipulate who lives in the property I wouldn't allow anything else. I am suspicious of people trafficking, prostituation and subletting.

Don't bother with MSE for this it's not niche enough. Go to Propertytribes.com - they are excellent, highly knowledgeable and very generous with their time and advice. I love that forum.

My big worry for you is all the randoms living in the house. This will stuff up insurances, eviction if needed and many other things.

if it walks like a duck and quacks like a duck...waddle rapidly away from it.

no tenant is better than the wrong tenant.

What nationality?

I thought cannabis farmer after reading the topic title.

Then I thought slumlord sub-letter/knocking shop.

Have you googled him? If he's a businessman his details will come up from previous positions, academic notes, speeches, conferences etc.

To me it sounds like a tax wheeze of some sort. Maybe he is planning to get into a situation where he has to pay tax only on money remitted into the UK, and if that does not include rent then it would be a lot less than if it has to include rent?

Absolutely don't do it. Your insurance probably requires you to vet all the adult occupiers and have any child permitted occupiers specifically named on the rental agreement. Sounds like you'd have all sorts of people living there, potentially causing damage you're not insured for.