‘Odd’ request from imminent new Uk tenant

[Emkay]

Any UK landlords here? Just had a request from my agent that they described as ‘odd’. New fully checked professional tenants about to move in to my UK house in 2 days. Applied and checked over 6 weeks ago.

The new tenants have now asked for an 8% rent discount if they pay 6 months on advance. They have allegedly just sold a house 5 times the value of mine….1.8m (theirs). I’m wondering about possible red flags?

Reminds me of tales of insolvency etc. Can’t see any benefit to me for such a short term with potential rolling rental after 6 months. Can’t get much on UK savings. The monthly income would be less than over the past 3 years.

Any advice on this would be much appreciated.

[snowingagain]

If you google this you get a miriad of answers. It seems very weird.

[Fraufruit]

Has the rental contract been signed and the deposit paid?

Would they expect to get the discount after the 6 months are up?

Maybe frugality is their love language.

[yesterday]

I used to be a UK landlord, but not anymore ...

Seems to me that they are asking for a rent reduction, if they will rent for a longer time ( 6 months ), if you are not happy about the length, maybe consider asking them for a 1 year ( or more ) contract for the reduction.

Only you can decide how much money you want to for the property in conjunction with the agent.

I would not really describe this arrangement as odd, but I would ask the agent want they think to the arrangement, and what the pitfalls could be.

As said, if its important for you to keep the place rented out for a longer period and nobody else will rent it, then I would consider it as an option as its a stable income for a period of time.

I decided not to be a UK landlord anymore, because I did not want the hassle anymore, and the returns on the stock market, would be about the same or even better. Of course both options have benefits and negatives....

[Emkay]

Many thanks for all your replies. I just spoke to the agent to ask why they think this request is odd.

New tenant signed the full price tenancy agreement yesterday. Agent then issued them with the deposit invoice. Within an hour of signing, they asked for the advance payment discount. Saying, only a discount of 8% would be worth their while for advanced payment.

Can’t see any benefit for me in reducing the rent for advanced payment. It would take me back to 2022 rent before significant interest rate increases. Agent too would get less management fee based on percentage of rent. They say they have never been asked for a discount after an agreement has been signed. Usually, at initial viewing, before application. No discount is usually expected for advanced payments.

Me overthinking as usual , I thought that it’s very common for people to rent short term, 6 months or so, whilst looking for a new property. This intended use is usually an open fact. The agent doesn’t know this might be the case. I’ve a vague recollection from a former bankrupt boss that he needed to pay in advance for a rental property whilst he still had funds available. Not sure if I may have issues with normal monthly payments….

I’ve heard of ‘gazunderung’ just before house sale documents are signed though never on a rental. I wonder how this will pan out…

[kiplette]

Unless you have real trouble finding tenants, I wouldn't go there. That's bonkers. You didn't ask for 6 months in advance, did you?

Also the thing about them having sold a very expensive house? What's that got to do with the price of chips? Bizarre.

And the agent has a point - why didn't they suggest this earlier? Odd bods.

Stuff 'em, I say. No thanks, I don't want your money in advance, I'd rather have it on time and in full. And also you signed for this already. Hello? Nutters.....

Tbf, I would be very put off by this, and I have a tenant who only pays when he fancies, won't let Handwerker in the house and grows black mould in his wardrobe for fun, so my standards are very low

[Emkay]

Has the rental contract been signed and the deposit paid?

Would they expect to get the discount after the 6 months are up?

Maybe frugality is their love language.

Ah yes, frugality might be it. Reminds me of my former South African stepfather. He haggled with everyone, even big stores like Asda Boots, John Lewis etc. Haggling was very much NOT the norm in the UK in the 1980s! Not even now I guess. But he always got something, either a discount or extra freebies.

[bethannbitt]

If it’s unusual where your property is located then I’ld be skeptical too. My son pays up one year in advance where he lives, in Yerevan, and this has caused the landlord to never raise the rent (even when the war in started and fleeing Russians were driving rents up and causing locals to be displaced). He had the same arrangement with his Italian immigrant landlady in SF 15 years ago, and for the same reason. I don’t think it’s weird, but it’s probably unusual except when a rental market is very tight. Requesting a discount after the agreement was signed seems crazy IMO.

[dstanners]

It is unusual (i.e. daft) to make that offer after signing the agreement.
However, it is not in itself odd, particularly if they have just sold a house. Assumedly, they have cash sitting in the bank doing little or nothing, so are taking a punt that it is beneficial to you to have 6 months' rent up front. Corporate landlords in particular may well prefer the cashflow benefit, and offer a discount on that basis (a bird in the hand today being worth 8% more than a bird caught in 6 monthly instalments).
It is also possible that they wish to stick 6 months of rental costs in the last tax year (assuming the agreement was dated pre 6 April).

So, there are good reasons why the request is not odd, but that doesn't mean you should accept it. If you have no specific benefit to having the cash upfront, then ignore the request....after all, they have already signed up to the agreement.

[Emkay]

Thank you all for your thoughts on this. The agent contacted the tenants this morning though until now, have had no reply.

[Feierabend]

I have no time for people who play games like this. The time for negotiating is before signing a contract. So unless you're needing cash in hand urgently, why accept it at a loss? It doesn't make sense to my very unsophisticated financial brain.