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View Full Version : ASTs - starting on the 1st of the month?



Ericthelobster
23-11-2005, 20:49 PM
I like to have my tenancies running on a first-of-the-month basis; so ideally a tenant moves in on the first, and their standing orders come in every month on the same day... which means I can check they've all arrived at the same time, and the tenant's cash arrives just before my mortgage payments go out. Makes administration easier as far as I'm concerned.

If I've had a tenant wanting to move in mid-month, I've set up the AST to run for 6 months plus the part month (for which I've charged rent pro-rata). This is all made very clear on the AST document.

My question is, is there anything potentially wrong with doing it like this; ie could I be setting myself up for a fall in any way? I'm thinking the only likely occasion might be if I wanted to end the tenancy at 6 months (which hasn't happened yet); is it conceivable I could lose an eviction court case because of an unfair term or something daft (even if I wasn't fussed about working from the 6-month anniversary of starting the tenancy, or the 6th month-end as per the tenancy, if you see what I mean...)

Thanks!

Nora Kay
24-11-2005, 00:33 AM
You don't need to bother creating a six and a half months tenancy.
If the six month tenancy commences on 15th of January - that's fine - it will terminate on the 14th of July as normal. So to adjust to the rent being paid on the 1st of the month, on 15th January, the tenant pays half a month's rent, then subsequently pays a full months rent on the 1st of Feb through to 1st June. The final payment on 1st July will be for half a month.
This arrangment doesn't alter the dates on the AST.

lawstudent
24-11-2005, 06:57 AM
Eric - I can see nothing wrong with the way you do it, and it seems a very good idea :)