View Full Version : AST rent wording.
RodCrosby
01-10-2009, 13:33 PM
I have been using a standard AST for a while now, but have always felt a little uneasy about the wording, that it doesn't quite "fit" my actual circumstances.
I usually rent to DSS, and am about to transfer some existing T's from HB to LHA. The LHA payment frequency is fortnightly. I don't take deposits.
TERM A term certain of SIX months commencing on ………………
RENT £ …………… per ……………………………payable in advance
by equal …………… payments on the …….day of each ………..
First payment to be made on the ………. day of ………….. next
It's the last bits that always confuse me:- "by equal ?? payments on the ?? day of each ??. First payment to be made on the ?? day of ?? next."
Can anyone help in tidying up this wording to reflect the true picture, i.e. LHA tenants on fortnightly payments?
jeffrey
01-10-2009, 13:35 PM
It's impossible to square this circle. L ought to reserve rent payable monthly in advance; HB/LHA may be payable four-weekly in arrears!
RodCrosby
01-10-2009, 13:45 PM
Thanks Jeffrey for the swift response.
OK, to put the question another way then.
What the deuce am I supposed to put in place of the ??s ?
Btw, I take it I am better off specifying fortnightly payments rather than weekly, due to that irritating matter of rentbooks which you so kindly drew to my attention once before?
jeffrey
01-10-2009, 13:58 PM
Thanks Jeffrey for the swift response.
OK, to put the question another way then.
What the deuce am I supposed to put in place of the ??s ?
Btw, I take it I am better off specifying fortnightly payments rather than weekly, due to that irritating matter of rentbooks which you so kindly drew to my attention once before?
OK. Let's try annotating your text.
TERM A term certain of SIX months commencing on ………………
RENT £ …………… per ……………………………payable in advance
by equal …………… payments on the …….day of each ………..
First payment to be made on the ………. day of ………….. next
It's the last bits that always confuse me:- "by equal ?? payments on the ?? day of each ??. First payment to be made on the ?? day of ?? next."
Can anyone help in tidying up this wording to reflect the true picture, i.e. LHA tenants on fortnightly payments?
1. Here's my preferred insertions in bold.
TERM: A term certain of SIX months commencing on [term commencement date]
RENT: £... per... payable [[B]monthly in advance]
by equal monthly payments on the ** day of each calendar month
[** = rent start date best set as same day as term commencement date]
First payment to be made on the [date of this Agreement]
2. The real problem is the payment of benefit in arrears. To accomodate that, the wording would need to look like this:
TERM: A term certain of SIX months commencing on [term commencement date]
RENT: £... per...
payable [fortnightly in arrears]
by equal fortnight[B]ly payments from [rent start date, best set as same day as term commencement date]
First payment to be made [on the fifteenth day after the date of this Agreement and each subsequent payment to be made every two weeks thereafter.
See how messy it gets?
tom999
01-10-2009, 14:00 PM
It's impossible to square this circle. L ought to reserve rent payable monthly in advance; HB/LHA may be payable four-weekly in arrears!
2 separate issues:
LHA claim is between T & LA (Local authority), and usually payable 4 weekly in arrears
Tenancy is between T and LL; T is liable for rent, at intervals as stated in AST, so does not have to coincide with LHA payment cycle.
by equal …………… payments on the …….day of each ………..
...What the deuce am I supposed to put in place of the ??s ?
Here's an exerpt from a standard AST:
"THE TENANT agrees to pay the Rent in advance by [method of payment] _________ in the following instalments namely a first payment of £________ on the signature of this Agreement and thereafter the sum of £_______ per calendar month [week] commencing on the _______ day of ___________20__"
RodCrosby
01-10-2009, 14:52 PM
Jeffrey, I think I'd scare any potential tenant away by quoting annual rent. HOW MUCH??????? :eek: [even if they are in receipt of LHA]
Isn't there also an issue between "due" and "arrears" for a payment schedule of monthly or longer if a Section 8 is required later?
I am currently using weekly payments, but thought of going to fortnightly in future to avoid the rentbook issue.
How about, for example?
TERM A term certain of SIX months commencing on …1ST OCTOBER 2009……………
RENT £ …180…… per ………FORTNIGHT……………payable in advance
by equal ……FORTNIGHTLY… payments on the ..THURS.day of each …ALTERNATE WEEK…
First payment to be made on the …1ST……. day of …OCTOBER... [STRIKEOUT:next] 2009
jeffrey
01-10-2009, 15:02 PM
Isn't there also an issue between "due" and "arrears" for a payment schedule of monthly or longer if a Section 8 is required later?
Yes, but it's irrelevant for Tenancy Agreement purposes.
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