Accountancy, asked by Ravimahar, 2 months ago

can anybody explain me how advance rent payment​

Answers

Answered by ishitchaturvedi267
0

Answer:

A landlord can ask for 1 or 2 weeks' rent in advance during the tenancy. This usually depends on whether the tenant will pay rent weekly (1 week in advance) or fortnightly (2 weeks in advance). ... A landlord also can't ask for the next rent payment until all the paid rent has been used up.

Answered by kanishka1023
0

Answer:

Many landlords require tenants to pay advance rent when signing a lease, with the most common situation being the prepayment of the last month's rent. With that in mind, here's a rundown of what exactly advance rent is, how it differs from a security deposit, and what landlords should keep in mind before requiring advance rent payments from their tenants.

What is advance rent?

As the phrase implies, advance rent refers to rental payments made for the future use of a property. However, this does not include rent that is paid for the month immediately following the payment -- by that definition, virtually all rent would be considered advance rent.

The most common definition of advance rent is any rent that has been prepaid more than 30 days in advance. For example, if you signed a lease in January and prepaid the first three months' rent, the first month would be considered your standard payment of the monthly rent due in January, while February and March would be considered advance rent payments.

Although it's possible for a tenant to pay any agreed-upon amount of rent in advance, the most common use of advance rent in practice is to require tenants to pay first and last months' rent, or two months' rent altogether, when signing a lease. In this case, the last month's rent would be considered advance rent.

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