If CRT Were a Business

[cotswoldsman]

CRT have once again managed to amaze me. I have just been sucessfull on an auction for a mooring. In amongst all the paperwork is the payment options

monthly

quarterly

yearly

and the full 3 years

 

I just phoned CRT to find out if there is a prompt payment discount if I pay the full 3 years in advance. The answer is NO. Now I was in business for a long time and someone offering to pay that much in advance would certainly qualify for a prompt payment discount. So might as well trickle in the money on a monthly basis.

Great that CRT are so flush with money. There is a risk with paying 3 years in advance as it assumes CRT will be about in 3 years so just on that basis worthy of a discount

[Athy]

I see what you mean - but I have never heard of, for example, a landlord giving a discount to a tenant who paid several months in advance, or a council doing similar for somebody who paid their whole year's council tax in one lump.

[cotswoldsman]

I see what you mean - but I have never heard of, for example, a landlord giving a discount to a tenant who paid several months in advance, or a council doing similar for somebody who paid their whole year's council tax in one lump.

If I had a Tennant that offered to pay 3 years in advance it would be far bigger than the one I allready give for quarterly or 6 months in advance.

I was simply working on the basis that I got prompt payment discount on 5 months winter mooring last year and ofcourse discount on my licence. But hey there we are money stays in my bank

[Paul C]

CRT have once again managed to amaze me. I have just been sucessfull on an auction for a mooring. In amongst all the paperwork is the payment options

monthly

quarterly

yearly

and the full 3 years

 

I just phoned CRT to find out if there is a prompt payment discount if I pay the full 3 years in advance. The answer is NO. Now I was in business for a long time and someone offering to pay that much in advance would certainly qualify for a prompt payment discount. So might as well trickle in the money on a monthly basis.

Great that CRT are so flush with money. There is a risk with paying 3 years in advance as it assumes CRT will be about in 3 years so just on that basis worthy of a discount

 

Have you ever configured SAP?

[KevMc]

Paying up front is only a benefit if CRT are (a) running an expensive overdraft which the full amount would reduce or ( have plenty of spare cash to invest at a significant rate and that could be added to it.

 

Whereas regular payments are something they can factor into their cash flow

 

I guess they think the regular cash flow is worth more than a little interest one way or the other

 

OR (more likely) no one is willing to put the head above the parapet and suggest it to someone that can make the decision

[john6767]

If you compare with marinas, the charge would normally be per year, with a premium charged for paying quarterly, as opposed to a discount for paying annually. If CRT make the total payment flat, then that does see ridiculous. I am surprised that they even offer a 3 year option 9not many people would want to pay that much out up front I would have thought), but is that because you have committed to taking the mooring for 3 years? Is there a penalty payment if you want to leave before the 3 years is up?

[cotswoldsman]

 

Have you ever configured SAP?

Thank you for your meaningful contribution

If you compare with marinas, the charge would normally be per year, with a premium charged for paying quarterly, as opposed to a discount for paying annually. If CRT make the total payment flat, then that does see ridiculous. I am surprised that they even offer a 3 year option 9not many people would want to pay that much out up front I would have thought), but is that because you have committed to taking the mooring for 3 years? Is there a penalty payment if you want to leave before the 3 years is up?

It is a three contract price wise but you can give notice 3 months I think.

 

Premium or discount amounts to the same thing IMO

[alan_fincher]

Is there a penalty payment if you want to leave before the 3 years is up?

The normal termination conditions for a CRT mooring won at auction are usually something like this....

 

37. You may terminate this Agreement at any time except within the first six months by giving two months written notice of termination to our local waterway office.

 

 

I have always taken that to mean you are committed to paying for 6 months, but I have heard different interpretations about termination after that.

 

Can you give notice at 4 months, and leave at 6, without further penalty, or must you wait 6 months before giving notice at all, and are hence actually forced to 8 months? Two different calls to CRT each yielded the opposite answer, so I still don't know!

[john6767]

It is a three contract price wise but you can give notice 3 months I think.

 

Premium or discount amounts to the same thing IMO

Yes I agree it does amount to much the same thing, it is really just what the base period is, so if is it quoted as a annually, I would expect to page a premium to pay monthly, but it it is quoted as monthly then a discount for annual payment would seem appropriate.

 

The normal termination conditions for a CRT mooring won at auction are usually something like this....

 

 

I have always taken that to mean you are committed to paying for 6 months, but I have heard different interpretations about termination after that.

 

Can you give notice at 4 months, and leave at 6, without further penalty, or must you wait 6 months before giving notice at all, and are hence actually forced to 8 months? Two different calls to CRT each yielded the opposite answer, so I still don't know!

Thanks, nice to know it is clear then!

[wreckferret]

We switched CRT moorings after six months (because a better one came up) so for two months we were paying for both moorings.....a month later CRT contacted us and refunded two months payments on our original mooring..........WINNER!!

[churchward]

CRT have once again managed to amaze me. I have just been sucessfull on an auction for a mooring. In amongst all the paperwork is the payment options

monthly

quarterly

yearly

and the full 3 years

 

I just phoned CRT to find out if there is a prompt payment discount if I pay the full 3 years in advance. The answer is NO. Now I was in business for a long time and someone offering to pay that much in advance would certainly qualify for a prompt payment discount. So might as well trickle in the money on a monthly basis.

Great that CRT are so flush with money. There is a risk with paying 3 years in advance as it assumes CRT will be about in 3 years so just on that basis worthy of a discount

I would expect a discount for paying so far in advance. The interest on savings of course is not what it used to be but you would think something like 5% minimum discount at least hopefully more like 10%

 

With no discount for anything else I would put by the 3 years amount and gain interest with it (OK not much) and pay monthly from it.

[alan_fincher]

We switched CRT moorings after six months (because a better one came up) so for two months we were paying for both moorings.....a month later CRT contacted us and refunded two months payments on our original mooring..........WINNER!!

 

Whilst it is possible they would do it for others, I would say the agreement you sign up to does not require them to do it.

 

Good that this happened for you, but I don't think people can rely on it.

[IanM]

 

Have you ever configured SAP?

 

Stuff that nightmares are made of and thank you for reminding me of one of this year's projects to come...

[b0atman]

With interests rates so low there is not a lot of incentive. The good business plan is set the 3 year rate and pay extra for paying in instalments.

[Ricco1]

If one of my tenants offered to pay a long period in advance it would make me suspicious. It's not normal behaviour, the vast majority of tenants pay one month in advance. I'd think they are probably not credit worthy, they are holding a lump of cash and may present a problem at the end of the period when of course, you can't just ask them to leave. Well you can, but they don't have to. Personally I'd be more careful with my credit checks, I'd certainly not be offering a discount. With bank rates around 1%, what's the point in that?

[bassplayer]

 

Have you ever configured SAP?

I have respect if you achieved it! I wonder why it was called SAP?

[cotswoldsman]

If one of my tenants offered to pay a long period in advance it would make me suspicious. It's not normal behaviour, the vast majority of tenants pay one month in advance. I'd think they are probably not credit worthy, they are holding a lump of cash and may present a problem at the end of the period when of course, you can't just ask them to leave. Well you can, but they don't have to. Personally I'd be more careful with my credit checks, I'd certainly not be offering a discount. With bank rates around 1%, what's the point in that?

I have 2 tenants that pay 6 months in advance one has been with me 8 years and one 11 years both are pensioners and rather like the discount it is far better than they would get leaving money in the bank. I have another Tennant been with me 6 years that pays quarterly to coincide with his private pension. The answer is you need to get either better tenants or better quality properties

[Athy]

at the end of the period when of course, you can't just ask them to leave. Well you can, but they don't have to.

Yes you can. Yes they do.

[Ricco1]

I have 2 tenants that pay 6 months in advance one has been with me 8 years and one 11 years both are pensioners and rather like the discount it is far better than they would get leaving money in the bank. I have another Tennant been with me 6 years that pays quarterly to coincide with his private pension. The answer is you need to get either better tenants or better quality properties

 

Well I guess we have different tenants interested in our different properties in different areas. Yours are perhaps in better areas and you generally have better tenants. My yields will be higher though or at least; they will be when measured against the current value of the properties. Swings and roundabouts and all that.

 

A lot of what I comment on is based on life experience, that's all. Having spent most of my working life as a credit manager, and being suitably formally qualified, my experience of different behaviours related to credit risk is rather more comprehensive.

 

In terms of

Yes you can. Yes they do.

 

You can ask, but they don't have to leave until bailiffs arrive to enforce the court order you obtained several months after you asked them to leave.

[cotswoldsman]

 

Well I guess we have different tenants interested in our different properties in different areas. Yours are perhaps in better areas and you generally have better tenants. My yields will be higher though or at least; they will be when measured against the current value of the properties. Swings and roundabouts and all that.

 

A lot of what I comment on is based on life experience, that's all. Having spent most of my working life as a credit manager, and being suitably formally qualified, my experience of different behaviours related to credit risk is rather more comprehensive.

 

In terms of

 

 

You can ask, but they don't have to leave until bailiffs arrive to enforce the court order you obtained several months after you asked them to leave.

Whatever

[Athy]

 

 

 

You can ask, but they don't have to leave until bailiffs arrive to enforce the court order you obtained several months after you asked them to leave.

That is not so. You grant the tenancy, sometimes known as a licence to occupy, for a fixed period, typically six months or a year, normally it's renewable but you have the option of not renewing it if you don't want to.

[Ricco1]

That is not so. You grant the tenancy, sometimes known as a licence to occupy, for a fixed period, typically six months or a year, normally it's renewable but you have the option of not renewing it if you don't want to.

 

I'll correct you. Tenancies are generally issued for 6 months or 12 months but can be for any period agreed between the 2 parties. Unless the agreement is formally ended by either party before the agreement ends the tenancy lapses into what's known as periodic. This means that the tenant must give one month notice of intention to leave, the landlord must give 2 months. The tenancy doesn't just end at the end of the agreed period.

 

As I said before if a tenant refuses to leave when a tenancy has formally ended the landlord has to obtain a court order for possession. If the tenant ignores this the landlord must instruct a court bailiff to remove the tenant. Any attempts by the landlord to remove the tenant by other means would be harassment, a criminal offence, as the tenant has the right to peaceful occupation of the property, even after a court has ordered them to leave.

[cotswoldsman]

 

I'll correct you. Tenancies are generally issued for 6 months or 12 months but can be for any period agreed between the 2 parties. Unless the agreement is formally ended by either party before the agreement ends the tenancy lapses into what's known as periodic. This means that the tenant must give one month notice of intention to leave, the landlord must give 2 months. The tenancy doesn't just end at the end of the agreed period.

 

As I said before if a tenant refuses to leave when a tenancy has formally ended the landlord has to obtain a court order for possession. If the tenant ignores this the landlord must instruct a court bailiff to remove the tenant. Any attempts by the landlord to remove the tenant by other means would be harassment, a criminal offence, as the tenant has the right to peaceful occupation of the property, even after a court has ordered them to leave.

I am sure with your experience in credit and stuff this would never happen to you. Me with no experience in credit have never had to take a Tennant to court Edited July 8, 2015 by cotswoldsman

[Athy]

 

I'll correct you. Tenancies are generally issued for 6 months or 12 months but can be for any period agreed between the 2 parties. Unless the agreement is formally ended by either party before the agreement ends the tenancy lapses into what's known as periodic. This means that the tenant must give one month notice of intention to leave, the landlord must give 2 months. The tenancy doesn't just end at the end of the agreed period.

 

As I said before if a tenant refuses to leave when a tenancy has formally ended the landlord has to obtain a court order for possession. If the tenant ignores this the landlord must instruct a court bailiff to remove the tenant. Any attempts by the landlord to remove the tenant by other means would be harassment, a criminal offence, as the tenant has the right to peaceful occupation of the property, even after a court has ordered them to leave.

Well, there is some possibility that some of what you say may be correct. But I do know that the estate agents who look after our properties have got rid of one couple of tenants in the past with hardly a hiccup - I think we lost ten days' rent, that's all. I did not ask the precise details, that's what I pay them their ten per cent for.

[Ricco1]

I am sure with your experience in credit and stuff this would never happen to you. Me with no experience in credit have never had to take a Tennant to court

 

Well as I said earlier it's a different level of risk, matched with higher returns.

Well, there is some possibility that some of what you say may be correct. But I do know that the estate agents who look after our properties have got rid of one couple of tenants in the past with hardly a hiccup - I think we lost ten days' rent, that's all. I did not ask the precise details, that's what I pay them their ten per cent for.

 

I have an agent too but I always think it's sensible, when you're in any line of business, to learn a bit about it.