Rent in advance - Renters' Rights Act changes

What you need to know

• Only one month’s rent in advance can be requested before a tenancy begins.
• This rule applies after the tenancy agreement is signed.
• The change aims to reduce financial barriers for tenants.
• Deposits and guarantors are still permitted, but must be used fairly.

What's changing?

Under the new rules, landlords will be limited to requesting no more than one month’s rent in advance. This applies once the tenancy agreement has been signed and before the tenancy begins.

What this means

• Landlords may no longer request or accept rent in advance before a tenancy agreement is signed, even if it is offered by the tenant.
• Once the agreement is signed, you may only request one month in advance, or 28 days’ rent for tenancies with shorter rental periods.

When can rent be requested?

Landlords can still request the first month’s rent before the tenancy starts, or 28 days’ rent in advance for tenancies with rental periods of less than one month, as is standard practice. This rule applies to all new tenancies and is enforceable by local authorities.

However

• You cannot ask for multiple months’ rent upfront as a condition of letting.
• You must not use rent in advance as a substitute for a deposit or as a way to bypass affordability checks.
• A tenant may still choose to pay rent early but this cannot be requested by the landlord.
   

Deposits and guarantors

The new rule on rent in advance does not affect tenancy deposits. Landlords will still be able to request up to five weeks’ rent (or six weeks for rents over £50,000 per year) as a deposit before the tenancy begins.

Landlords can still

• Request a deposit in addition to the first month’s rent.
• Ask for a guarantor if needed, provided this is applied fairly and consistently. Clearly state the total rent payable.