24, Wetheral Gardens, Low Fell NE9 6PY MAN/00CH/HTC/2022/0004
REASONS
[7]The statutory guidance issued pursuant to the Act is clear that, where a tenant has no suitable guarantor, a landlord is entitled to ask their tenant to pay their rent in a lump sum in advance, although the landlord should consider the extent to which this is necessary and affordable for the tenant.[8]In this case, the Respondent requested a payment equal to 1 month’s rent.[9]The Tribunal is satisfied that the payment of £800 was an up-front payment of rent in circumstances where a suitable guarantor was not available.[10]It could be argued that an “up-front payment” in an amount less than the aggregate amount of the rent payable for the fixed term of the tenancy will be applied in payment of the rent first becoming due. The Tribunal notes that, in her submissions, the Applicant states that this was her understanding where she states that she had expected the payment to be used in settlement of the rent becoming due on 2 October 2022.[11]The Tribunal notes however that the special condition in the tenancy agreement expressly states that “ the 1 extra month’s rent….will be held on their rent account throughout the tenancy”. This appears to be consistent with the Respondent’s submission that it was his intention that the payment would be used to make payment of the rent becoming due in August 2023, the last month of the fixed term tenancy.[12]The Tribunal does not consider that the proposed timing of any application of the payment as rent affects its fundamental categorisation as rent and therefore as a permitted payment within paragraph 1 of Schedule 1 to the Act.[13]The Tribunal is satisfied accordingly that the additional payment of £800 is a payment of rent and therefore a permitted payment within paragraph 1 of Schedule 1 to the Act. The Applicant’s application for repayment of the payment is therefore dismissed.[14]In the circumstances, the Tribunal considers that no further consideration of the Applicant’s application for an order to “debar” the Respondent’s wife/partner from taking any part in the proceedings is required and the application is dismissed accordingly. Tribunal Judge C Wood 13 February 2023