At flatfair, if rent in advance is indicated as a condition on a tenant’s reference report, then we require that the rent is paid in advance for the duration of the tenancy.
The minimum term for rent in advance that we accept is 3 months and best practice would be to document this in the tenancy agreement.
'It is further agreed that [TENANT NAME} will pay 3 months rent of [RENTAL AMOUNT] upfront from the 26th July [YEAR] until the 25th October [YEAR]. The next 3 months rent payment of [RENT AMOUNT] will be due on the 26th September [YEAR].'
Tenants may also pay their full tenancy term in advance. It’s important to note that if the tenancy is extended past the initial 12-month tenancy term, the same 12 month upfront payment will need to be taken and this payment must be taken before the start of the 12th month of the tenancy.
At all times, despite the term length the rent in advance payment covers, the tenants must remain in credit on their rental payments. The next rent payment must be taken in advance of the period of time the previous payment covers by a minimum of one month as demonstrated in the example above. Failure to provide evidence that this payment has been taken may affect flatfair's decision whether or not to purchase landlord debt at the end of the tenancy
However, if the tenancy term is not going to be extended the tenants will need to vacate the property prior to the tenancy agreement termination date. Therefore, for all tenancies with rent in advance as a condition, tenants must vacate the property at least one month in advance of their tenancy end date to ensure that the condition is maintained.