Understanding what ‘Rent in Advance’ means
“Where did my first two weeks rent in advance go?”
It’s one of the most common questions tenants ask of Perth Property Managers at the end of a tenancy, but rarely do the common answers online make the concept of rent in advance easy to understand.
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. 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.
Let’s describe the concept of rent in advance in a way that is easier to understand.
What is ‘rent in advance’?
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.
HERE to help
If you’re looking for a proactive property manager to help guide you on your options, we’re HERE to support you along the way.
Contact the HERE team to discuss how we can help you maximise your property’s potential while minimising risk with a tailored approach focused on your goals.