Tenants are pressured into paying a year’s rent upfront – The DPS

Tenants are pressured into paying a year’s rent upfront – The DPS

0:03 AM, 27th September 2024, About 3 months ago 8

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Tenants across the UK are facing increasing pressure to pay huge amounts of rent upfront to secure a property, according to a survey by The Deposit Protection Service (The DPS).

It questioned 2,210 tenants and found that six out of 10 respondents who have moved in the past year paid between two and three months’ rent upfront.

However, 8% of renters paid between four and six months, while 5% were required to pay a full year’s rent in advance.

‘Providing rent upfront to landlords’

The managing director at The DPS, Matt Trevett, said: “Our latest research shows how significant proportions of prospective tenants are providing rent upfront to landlords or letting agents.

“Tenants paying rents upfront should ask their landlords what impact this will have on their rental payments: typically, a landlord or letting agent who asks this does not charge for the equivalent amount towards the end of the tenancy, but tenants should always double check this is the case.”

He added: “Landlord and lettings agents should make it clear that tenants’ deposits, protected with independent third-party deposit scheme such as The DPS, are separate.”

23% provided proof of income

The survey also showed that to stand out from other applicants, nearly one in four tenants (23%) provided proof of income.

Also, many offered references (16% from previous employers, 15% from past landlords), rental history details (13%), guarantor information (9%) and personal details (4%).

Some potential tenants also offered photos of their current home (2%), or even images of themselves or loved ones (1%).

‘We don’t ask for rents upfront’

Kate Watts, of Robert Watts estate agents in Bradford, lets homes on behalf of 950 landlords in the area, and she said: “We don’t ask for rents upfront outside of deposits, but I can see how asking for additional rents would be a way for agents to differentiate between prospective tenants.

“The sheer demand for rental properties since the pandemic means that we see an average of twenty to thirty initial renters chasing one property.”

She adds: “Desperate renters will pay upfront rent, but tenants who do this should be aware they could struggle to afford rents later in the tenancy if they have no savings to cover unexpected bills or general cost-of-living increases.”


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Monty Bodkin

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8:43 AM, 27th September 2024, About 3 months ago

"Tenants across the UK are facing increasing pressure to pay huge amounts of rent upfront"

Pressure from who?

The war on landlords has created this. Cause and effect.

Reluctant Landlord

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10:49 AM, 27th September 2024, About 3 months ago

Reply to the comment left by Monty Bodkin at 27/09/2024 - 08:43
.....and now they plan to ban this in the RRB even though it will work to the detriment of the tenant....

havens havens

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14:10 PM, 27th September 2024, About 3 months ago

I find the rise in tenants paying several months' rent upfront quite alarming. It really shows how tough the rental market has become. While I understand that landlords want to secure reliable tenants, this approach can put renters in a tight spot financially. It’s crucial for both parties to communicate openly about rental terms to avoid any surprises later on. We need to promote transparency in these agreements to ensure everyone feels secure in their housing situation. As a landlord, I believe we should prioritize creating a fair and supportive environment for our tenants.

Reluctant Landlord

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15:11 PM, 27th September 2024, About 3 months ago

Reply to the comment left by havens havens at 27/09/2024 - 14:10
you are clearly not a LL.

TENANTS offer more rent up front because they either want to genuinely secure properties or it comes from tenant's who want to seem to be offering the LL a deal they cannot refuse. Therein lies the question- why?

I know far more LL's that turn down offers of 6 months up front etc that accept them. (me included!)

If a Tenant has a good credit rating, references etc then there is no reason for them to OFFER rent in advance over the first month because it can be shown they can afford the regular payment.

A tenant who OFFERS 6 months or more in advance may have the cash now, but where has this come from and what happens after 6 months.
Can they pay the on going rent? Where's the proof of income after this?

(NB you can get at least 3 weed crops in a 6 month span....)

Offers of 12 months or more in advance are a total red flag!

Cider Drinker

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17:33 PM, 27th September 2024, About 3 months ago

Reply to the comment left by havens havens at 27/09/2024 - 14:10
Some landlords will be attracted by rent in advance. It would scare me.

I prefer to accept rent in arrears (but I think I’m on my own here lol ).

Desert Rat

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0:22 AM, 28th September 2024, About 3 months ago

I had a tenant last year that offered 12 months rent up front and I refused to accept it.

They had lots of money in the bank, so I had no reason to accept the 12 months payment.

They were also my preferred tenant of the bunch that wanted the house after the first day viewing it.

Lisa008

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10:07 AM, 28th September 2024, About 3 months ago

They offer up front because they may have just sold a house and are keen to secure the property. Others may not have references and want to reduce any fears the landlord might have because you’re taking a risk on them. As a student in halls we used to pay termly in advance. Our student loan came in and we made paying the rent a priority. Then we knew what we had left for the term. And finally many people coming from places like Saudi or Hong Kong… it’s the norm there to pay 1 year in advance. They’re cash rich and think nothing of it. Only in the U.K. where people are hand to mouth do we seem to think it’s hard or difficult. That’s why there is so much rent arrears… people are broke. They need a cheap council house to rent and there aren’t enough!!!! Stop selling off council houses cheaply. Build more and keep the portfolio and encourage investment into the sector if necessary but don’t stop rents in advance. Far from giving me sleepless nights, I sleep very well with rent in advance thank you very much.

GlanACC

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17:00 PM, 28th September 2024, About 3 months ago

I would not accept a reference from a previous landlord. One or two of my past tenants asked for a good reference then they would move out. Did I give them a reference, NO, I gave them a CCJ

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