Recent updates to rental practices, driven by the Renters’ Rights Act, are placing greater emphasis on fairness and transparency at the very start of a tenancy. For landlords and letting agents, this means rethinking how and when rent can be requested, particularly in the pre-tenancy stage.
At Hunters, we understand that staying compliant is not just about avoiding penalties. It is about building trust with tenants and creating a smoother lettings process. Here is a clear guide to the latest expectations around upfront rent and what they mean for you.
Related: Keeping Your Let Compliant and How to Assess Affordability Fairly
No Rent Before the Tenancy Is Signed
One of the most important changes under the Renters’ Rights Act is the strict prohibition on requesting or accepting rent payments before a tenancy agreement has been formally signed.
This ensures that tenants are not financially committed before they have full clarity on the terms of their agreement. For landlords, it removes any ambiguity around pre-tenancy arrangements and reinforces the need for a fully executed contract before funds change hands.
In practical terms, this means:
- You must not request holding rent or advance rent payments prior to signing
- Any informal agreements or verbal commitments are not sufficient grounds to collect rent
- The tenancy agreement must be finalised and signed by all parties before payment is taken
This shift promotes transparency and protects both landlords and tenants from disputes later in the process.
Limits on Rent in Advance
Once the tenancy agreement is signed, landlords can request rent, but only up to a clearly defined limit.
Under the Renters’ Rights Act, this is capped at one month’s rent in advance, or 28 days for shorter tenancy periods. This prevents excessive upfront costs that could otherwise act as a barrier for tenants entering the rental market.
For landlords, this means adjusting expectations, particularly in markets where larger advance payments may have previously been standard practice. While it may require a shift in approach, it ultimately supports a more accessible and competitive lettings environment.
Related: Set the right asking rent first time: pricing strategies when bidding wars are off the table
Prohibited Clauses in Tenancy Agreements
Another key area of change relates to tenancy agreement clauses.
Under the Renters’ Rights Act, any terms that require tenants to pay rent in large lump sums, such as quarterly or termly payments, are now considered invalid. These clauses are effectively unenforceable, even if they are included in the contract.
This applies regardless of tenant type, including students or international renters who may historically have been asked to pay several months’ rent upfront.
Landlords should review their tenancy agreements carefully to ensure:
- No clauses mandate payments beyond the one-month limit
- All rent terms are clearly aligned with current legislation
- Any outdated wording is removed or updated
Failing to do so could lead to compliance issues and potential disputes.
What About Voluntary Payments?
Tenants can still choose to pay more than one month’s rent in advance, but the key distinction under the Renters’ Rights Act is that this must be entirely voluntary.
Landlords and agents cannot:
- Require larger upfront payments
- Suggest or encourage tenants to pay more
- Imply that offering additional rent will improve a tenant’s chances
If a tenant independently decides to pay more, for example, to secure a property or manage their finances, that is permitted. However, it must be clearly documented as a tenant-led decision.
This is an important nuance, and one that landlords must handle carefully to remain compliant.
Why These Changes Matter
The Renters’ Rights Act forms part of a broader shift towards a fairer and more transparent private rented sector.
For tenants, it reduces financial pressure at the start of a tenancy and creates a more level playing field. For landlords, it encourages clearer processes, better documentation, and more consistent standards across the industry.
While the changes may require some adjustment, they also present an opportunity to strengthen your lettings approach, making it more professional, compliant, and tenant-friendly.
Navigating the New Lettings Landscape
Navigating changes such as the Renters’ Rights Act can be complex, but ensuring your processes and tenancy agreements are fully aligned is essential for long-term success. At Hunters, our expert teams support landlords at every stage, helping you remain compliant and in control.
If you would like guidance on your tenancy agreements or rental process, contact your local Hunters branch today and let with ease.
