Rent in Advance 1 month only

Whilst definitions contained with the Deposit Legislation do not give consideration to a Landlords accepting rent in advance, contained within the legislation are references to Monies/ Deposits and performance obligations.

Some Courts are now questioning whether the rent in advance is indeed a performance obligation.

Such as "the rent must always be paid two months in advance" [this is a performance requirement hence by definition could be deemed a deposit]. Whilst one could probably successfully argue it is not a Deposit the fact remains, such argument or scrutiny may result in a delayed eviction. This is because the Judge requires time to decide if there was an expectation of performance then such money would be considered a deposit. In this case, a Judge may fine the Landlord three times the amount of the deposit for failing to protect such monies and invalidate any section 21 Notice relied upon. If the case was for rent arrears, then the tenant may try a set off claim for compensation. Again, this would result in a lengthy delay in the eviction process.

As always, where there is any doubt it often favours the Tenant and serves no value for the Landlord. The surest way of proceeding is do not draw reference to rent in advance on any tenancy agreement and simply say Rent is Y. Payable in advance (which should be no more than the term), so the rent monthly payable in advance for the months as agreed, or if weekly should be no more than 4 weeks and the deposit defined as the amount £X.XXX or nil.