Should I pay the landlord’s rent in advance for HMO rent to rent?
This weeks Ask The Angels question from Paul is around his confusion as to when he should pay the landlord rent for his rent to rent HMO property.
Here’s Paul's question...
“We have a R2R HMO, I was under the impression that we take the rent payment from the tenants at the end of the month and pay the landlord for that month at the end of the month.
The landlord we are working with was expecting the rent to be paid ahead of the month. I can’t quite get my head how to work this, as this means paying him out of our own pocket and getting reimbursed by the tenant, is this normal?”
There can be a lot of detail to get your head around when you’re starting in rent to rent.
And it pays to understand how it all works.
When you pay your landlords and when your tenants pay you is when you agree it.
Usually tenants pay rent in advance. So before a tenant moves in they’ll pay the first month’s rent.
When you pay your landlords is whenever you agree with. You’re saying this landlord wants the rent in advance.
Typically, with a high street letting agent, landlords are paid after the rent comes in.
So you can agree with your landlords to pay them in arrears.
So you pay them at the end of the month.
Listen to the full episode to hear some examples.
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Stephanie & Nicky
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