advance rental?

[MFG]

Hi,

going to let my property soon and like to check... i am in SA,

i will be collecting 4 weeks of bonds -> to bond office,
2 weeks of rental + 2 weeks of advance rental

is that correct to keep 2 weeks of advance rental in case the tenant default in paying?

Care to share what's your practice??

cheers,
Scott

 

[Jen_PFR]

You're potentially in breach of the South Australian Residential Tenancies' Act:
http://www.austlii.edu.au/au/legis/sa/consol_act/rta1995207/s54.html

Maybe have a good look through the Act so you are familiar with its provisions. Here's a link for you:
http://www.austlii.edu.au/au/legis/sa/consol_act/rta1995207/

 

[MFG]

thanks Jen_PFR for the link, it is very helpful. as i have never received any advance rental before...

in the link, it says
" (1) A person must not require the payment of more than two weeks' rent under a residential tenancy agreement before the end of the first two weeks of the tenancy"

i am collecting 2 weeks of rent in advance before the end of the first 2 weeks (and not more than 2 weeks). hence i am not breaching the above. Am i correct?

cheers.
Scott

 

[MFG]

correction. Jen, i am with you now..

cheers,
Scott

 

[Jody in Darwin]

Hi Scott,

I've seen this misunderstanding of the word 'advance' a lot as a property manager. Rent in advance means paying before the rental period is used up rather than after - it does not actually mean that tenants are 2 weeks in advance all the time. It is the same concept as buying milk from the shop - you pay in advance - before you crack it open, rather than when you finish the bottle.

Kind regards,
Jody