Rent in Advance After the Renters’ Rights Bill: What Landlords Need to Know

Rent in Advance After the Renters’ Rights Bill: What Landlords Need to Know

If you’re a residential landlord or tenant in North London, you’ve probably heard about the sweeping reforms coming in with the new Renters’ Rights Bill. One of the most frequently asked questions we receive at Selmans Lettings is: “Will landlords still be able to accept rent in advance once the new bill comes into force?” Here’s what all landlords and tenants need to know.

No More Large Upfront Payments Before Tenancy Starts

The Renters’ Rights Bill closes the long-standing practice of requiring several months’ rent in advance before a tenancy is signed. Once the bill is in force, landlords and agents will not be allowed to accept any rent from a prospective tenant until the tenancy agreement has been entered into. If a landlord takes advance rent before a tenancy is finalised, this will be considered a prohibited payment, and local councils can issue fines of up to £5,000 for breaches .

What Can Be Requested or Accepted?

• When signing a new tenancy, landlords and agents may only request up to one month’s rent in advance (or 28 days, depending on the agreement). Large upfront demands for multiple months’ rent will be banned .

• Once the tenancy has started, tenants are free to pay rent early if they choose. Landlords can accept voluntary early rent payments but cannot require or pressure tenants to pay beyond the agreed-upon rent schedule.

What Does ‘Voluntary’ Advance Payment Mean?

Under the new rules, any clause in the tenancy agreement that requires rent to be paid in advance of the due date (except for the initial move-in) will have no legal effect. This means tenants can choose, for convenience, to pay rent early during their tenancy, but landlords must not make it a requirement for granting or continuing a tenancy .

Special Cases: Students, Overseas Tenants & Referencing

Previously, landlords often asked students or tenants with thin credit histories to pay several months upfront as a way of mitigating risk. The new law says: only one month can be required at the start – not two, six, or twelve months. Any further advance payments must be made voluntarily and after the tenancy agreement is signed.

Enforcement & Penalties

If any rent is accepted before a tenancy agreement is entered into, landlords must return it. Councils will have the power to order repayments and will be able to issue civil penalties for non-compliance with these orders. At Selmans Lettings, we strongly advise landlords to adhere to the new rules and avoid putting tenancies and reputations at risk

Our Advice: Transparency and Compliance

We are here to guide local landlords through every change. For questions about rent payments, tenancy agreements, or compliance with the new bill, get in touch. Our specialist property management team will keep you updated, protected, and fully informed .

Selmans Lettings Ltd – North London’s trusted rental specialists. Keeping you compliant, every step of the way.