Understanding what ‘Rent in Advance’ means
“Where did my first 2 weeks rent in advance go?”
It’s one of the most common questions asked of Perth Property Managers at the end of a tenancy, but rarely do the common answers make the concept of rent in advance easy to understand. So I thought we would take some time and provide a real life example of the concept.
Some tenants mistakenly believe that the first two weeks rent paid is held in trust for use at the end of tenancy, like a bond, but this is not the case. It is important to note that the first two weeks rent paid for your first two weeks of tenancy as rent must be paid prior, or in advance, to the period a tenant is paying for.
The best way to illustrate this is a simple example of shopping. If you go into a shop and you select a can of drink from the fridge. If you open the can, drink the contents and then walk to the counter to pay you would agree you might find the store owner displeased with your actions! The right thing is to pay for the can of drink first, then consume the contents after paying.
Paying rent in advance works exactly the same way. You purchase the time period in advance, and then consume the time period by residing in the property. Once the time period is finished or consumed, you then pay for the next time period again before using it, by continuing in the lease and residing in the property.
This is the meaning of rent in advance.