Student paying year up front?

Student paying year up front?

9:39 AM, 3rd February 2025, About 3 hours ago 10

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Hello, I have a question that hopefully someone can answer.

I have an overseas student tenant who is due to move into an HMO of mine in July. She has asked if she can pay the whole year up front.

This is not normally a problem and has always been the answer to an overseas guarantor which doesn’t guarantee anything.

With the new rules about to come in, will she be able to ask for a chunk of her money back so it is not in excess of one month rent?

And then, of course, I run the risk of her not paying, not having a guarantor and her not paying the rent?

Any thoughts?

Thank you,

Richard


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Jason

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9:54 AM, 3rd February 2025, About 3 hours ago

I guess it all depends on when the bills passes Royal assent and a date set to kick in. It could be bad news it could be ok for another student year all depends on the details which isn’t quite there yet. You can write to Mr Pennycock and your local MP to ask of calcification. They might make an exception in the bill for overseas students who knows?

Cider Drinker

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9:58 AM, 3rd February 2025, About 3 hours ago

Quite possibly.

What the government are saying…

Q. When will you implement the rent in advance prohibition?

A. Following Royal Assent of the Renters’ Rights Bill, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, while making sure that prospective tenants can benefit from the reforms as soon as possible.
We will engage with the sector on the implementation of the rent in advance provisions.

Reluctant Landlord

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10:56 AM, 3rd February 2025, About 2 hours ago

while the current system is in place then do as you do now - nothing changes.

In fact, more incentive to get her signed up as soon as possible and an agreement made.

Jo Westlake

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11:20 AM, 3rd February 2025, About 2 hours ago

It's not just students that are affected by this.
I've never done it before but I have a flat coming vacant shortly due to the tenant buying a property. Someone I have known for years has asked if he can have the flat but wants to pay 6 months in advance. He has an IVA from a few years ago and knows he will fail referencing. The last couple of properties he has rented have been on the basis of 6 months up front and then he just pays rent monthly so is permanently in advance. It isn't something I have asked for or expect. It's something he wants to do as apparently it makes him feel secure and financially more In control. I guess having an IVA does that to a person. In this case it may well be the difference in renting to him or choosing someone else.

Blodwyn

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11:30 AM, 3rd February 2025, About 2 hours ago

You can only operate with what is?
What is the time frame of impending legislation and what is it for implementation?

GlanACC

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11:38 AM, 3rd February 2025, About An hour ago

Reply to the comment left by Jo Westlake at 03/02/2025 - 11:20
Jo, don't do it - taking in someone you know can lead to all sorts of problems. If they don't pay you would be reluctant to chuck them out.

Ryan Stevens

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11:51 AM, 3rd February 2025, About An hour ago

Reply to the comment left by Cider Drinker at 03/02/2025 - 09:58
So that's all meaningless then. You can guess who the government will be helping, and it won't be landlords!

Jo Westlake

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11:55 AM, 3rd February 2025, About An hour ago

Reply to the comment left by GlanACC at 03/02/2025 - 11:38
Thank you for your concern.
I actually rent to several people I know and have never had a problem.
I have bought 5 properties specifically for people I knew and 4 of them are still in situ. All of them pay their rent. The first one has been with me since 2009 and the most recent since 2020. I have also rented existing BTLs to various other people I know such as colleagues or family friends. It's not my main type of letting but it's certainly the most stable.
Anyone who knows me knows I very clearly separate business from anything else and that I only buy properties in very convenient locations. I have never needed to evict anyone and hopefully never will but knowing them in a personal capacity wouldn't impact my ability to do so.

GlanACC

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12:07 PM, 3rd February 2025, About 59 minutes ago

I went into business with a friend and we bought a pub. Suffice to say we are no longer friends and I ended up having to use a solicitor to get my money back.- and I haven't seen him for over 10 years - lesson learnt there

Dylan Morris

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12:13 PM, 3rd February 2025, About 53 minutes ago

Reply to the comment left by Jo Westlake at 03/02/2025 - 11:20
Well best of luck if you want to take on a tenant who fails referencing.

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