Rental adjustment at settlement

Discussion in 'Property Management' started by Amaroo, 12th Jul, 2016.

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  1. Amaroo

    Amaroo Member

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    We received an email from our conveyancer today informing us that an overpayment of rent ($10,000) was to be paid into our account. The tenants have paid in advance until January 2017. We are not complaining.
    How common is this?
     
    Amaroo, 12th Jul, 2016
    #1
    Elives likes this.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    very strange - doesn't make sense
     
    Terry_w, 12th Jul, 2016
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  3. standtall

    standtall Well-Known Member

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    You should have absolutely no problems with this. Paying rent in advance doesn't mean you can't terminate the lease (if not fixed term) or anything. You can always refund the remaining amount. Just park the money in an offset account and save a bit on your interest bill.
     
    standtall, 12th Jul, 2016
    #3
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  4. Lil Skater

    Lil Skater Well-Known Member

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    Very common, if a tenant pays their rent in advance, any over payment is transferred to the new owner upon settlement.

    Park the money as you won't be receiving any for a while.
     
    Lil Skater, 13th Jul, 2016
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  5. Biz

    Biz Well-Known Member

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    Drug lab confirmed.
     
    Biz, 13th Jul, 2016
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  6. Ghoti

    Ghoti Well-Known Member

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    Must admit my first thought was money laundering :)
     
    Ghoti, 13th Jul, 2016
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  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    It's quite common, especially amongst tenants such as Chinese students. Quite often their parents will send 6mths worth of rent all in one go. It's a hassle to convert currency each week so they do it in big chunks.
     
    JacM, 13th Jul, 2016
    #7