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What happens if an applicant cancels the tenancy contract?

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  • What happens if an applicant cancels the tenancy contract?

    I am about to prepare for a tenancy contract.
    I am going to ask only bond amount without usual 1st week rent in advance because I do not know the purpose of it. Why is it? Does that mean that if tenant wants to cancel the contract, LL can keep it, like a deposit that you lose if you do not keep the promise or something like that? If it is, I'll ask for the first 2 weeks rent in advance. Otherwise, I do not see the point of asking the money.

  • #2
    I found this info from

    A verbal tenancy agreement could also belegally binding. This means you might haveto do what you have agreed, even if youhaven’t signed anything. For example, alandlord might not be able to change theirmind if they tell a prospective tenant theycan have the place. In the same way, if atenant says they will take the place or ifthey pay some money, they might have
    to go ahead with the tenancy.


    But I still didn't find what for the first week rent in advance is for.
    I have had tenants who insisted that they paid in advance so that should not be charged for the last week rent.
    I had to tell them that the first week rent was used for the first week and they started automatic payment from the 2nd week. Also another tenant insisted that, too. So, I did not ask for the first week rent in advance one time and he did not make a fuss about that, so I am thinking that I do not ask for the first week rent in advance this time, either. I am happy to have found the web site explains clearly about the first week rent in advance.

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    • #3
      Are you for real? You've been letting properties without knowing what it means?

      It simply means that unlike some things, the rent is not paid in arrears. You pay a week's rent, you stay a week in the property. You pay another week's rent, you stay another week. You pay, you stay. Not you stay, you pay.
      My blog. From personal experience.
      http://statehousinginnz.wordpress.com/

      Comment


      • #4
        We are all for encouraging landlords to manage their rentals but for your case we highly recommend you work with a property manager to understand the tenancy laws.

        As Sidinz posted, tenants have to pay in advance usually a week or two weeks.
        Allowing the new tenant to only pay for the bond but no rent in advance is setting you up for failure and disappointment. You are also not setting the right expectations for this tenancy.
        www.PropertyMinder.co.nz
        # Property Management
        # Ad Hoc Tenancy Services / Rental Inspections / Terminations and Notices

        Comment


        • #5
          Rent
          A landlord can ask for one or two weeks’rent in advance. This is the first one ortwo weeks’ rent, depending on whetherthe tenant is going to pay weekly (oneweek in advance) or fortnightly (twoweeks in advance). A landlord can’t askfor the next rent payment until all thepaid rent has been used up. For example,if a tenant has paid two weeks’ rent inadvance they don’t have to pay againuntil that money has been used up –that means two weeks (14 days) later.

          When I did not get 'first week rent in advance', there was no problem at the end of the tenancy. When the tenants paid one week rent in advance, they insisted not to pay for the last week rent because they paid in advance at the beginning. So, I told them that they paid the first week rent in advance so they started to pay from the 2nd week by automatic payment and therefore they did not over pay. So, I do not really see the point of getting 1st week rent in advance unless LL can keep as a bond in case of cancelation of the tenancy contract. I think people get confused this 'rent in advance' with 'f'irst week rent in advance'
          Last edited by nano; 04-06-2017, 09:59 PM.

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          • #6
            What's the difference? If you pay a week in advance and move on Friday, then you're paid up til, and including, the Thursday. Your rent is due BEFORE the next Friday. If you happen to move out on a Thursday then your final rent payment wil be the Friday before. If you move out on a Friday then you're payment for that week is only for the Friday.

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            • #7
              It is really incredible how many tenants think that the rent in advance is still there when they move out, regardless of how you word it. I have even had someone tell me that was what Citizens Advice Bureau told them. This is what I give all my tenants when they move in:

              Please ensure your rent is always paid in advance. Some tenants find this concept hard to understand, and some mistakenly believe that the first week of rent paid in advance is held in trust for use at the end of tenancy, like a bond. It is important to note the first weeks rent paid for your first week of tenancy.
              One weeks rent covers a period of 7 days. If you move in on a Monday, the rent covers you from Monday to Sunday, and the next rent payment is due on the following Monday – “In Advance: for the next week. You may pay more than one weeks rent at your choice.
              Jeremy Barker
              Hamilton Property Management
              www.hamiltonpm.co.nz

              Comment


              • #8
                That is why I do not want to get first week rent in advance to avoid the confusion that the tenant gets. My agent explicitly wrote on the contract, 'first week rent in advance = first week payment' though, the tenant made such a fuss at the end of the tenancy that they would bring me to the Tenancy Tribunal. Later, I assume they learned that they were wrong since they did not mention it anymore. So, my question is why do we get first week rent in advance? To make the tenant feel more 'obligated' to move in instead of changing their mind?
                Last edited by nano; 05-06-2017, 11:40 AM.

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                • #9
                  Originally posted by nano View Post
                  So, my question is why do we get first week rent in advance? To make the tenant feel more 'obligated' to move in instead of changing their mind?
                  Why do airlines want you to buy a ticket before you fly? Why do supermarkets want you to pay for your food before you take it home and eat it?

                  Granted, some industries are pay at the end of a set term ie. most power companies and fixed phone contracts but the industry standard for rental properties is payment in advance.

                  And it's not just the first week. It's every week upto and including the final week.

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                  • #10
                    Originally posted by nano View Post
                    That is why I do not want to get first week rent in advance to avoid the confusion that the tenant gets. My agent explicitly wrote on the contract, 'first week rent in advance = first week payment' though, the tenant made such a fuss at the end of the tenancy that they would bring me to the Tenancy Tribunal. Later, I assume they learned that they were wrong since they did not mention it anymore. So, my question is why do we get first week rent in advance? To make the tenant feel more 'obligated' to move in instead of changing their mind?
                    You keep saying the same thing!
                    As sidinz put it
                    you pay a week - then you stay a week
                    then you pay another week to stay another week.

                    If you don't collect the payment in advance when they don't pay you are already a week behind in rent - they have stayed there a week and haven't paid.

                    At the end they pay the last week rent, stay the week and leave - no more payment.
                    Draw it out on a piece of paper or get a competent PM.

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