Rent in advance has often been used by landlords as a way to reduce perceived risk or strengthen financial security at the start of a tenancy. In some cases, larger upfront payments have been written into tenancy agreements as standard practice.
The Renters’ Rights Act 2025 now introduces a defined statutory framework governing when rent can be requested, how much can be taken before a tenancy starts, and what happens if larger lump sums are required. For landlords who currently request substantial upfront payments, these changes may require a review of existing tenancy practices. With enforcement led by local councils and significant financial penalties available, understanding the details is essential.
The rules apply to assured periodic tenancies in England and do not apply retrospectively to tenancy agreements signed before the legislation takes effect. They also do not apply to rent in advance payments made before commencement.
The legal position on rent before a tenancy is signed
The starting point under the Act is clear: rent cannot be requested or accepted before the tenancy agreement has been formally entered into.
Restrictions on requesting or accepting rent
Before a tenancy agreement has been signed by both parties, a landlord or letting agent must not:
- Ask a tenant to pay rent.
- Encourage a tenant to make a rent payment.
- Accept the rent offered before signing.
This applies even if a tenant offers to pay several months upfront to secure the property. If rent is accepted before the agreement has been signed by both the landlord (or agent) and the tenant, this constitutes a breach.
The guidance confirms that this restriction also applies to social and supported housing.
Payments that remain permitted before signing
It is important to distinguish rent from other permitted payments. The restriction applies specifically to rent. Landlords and agents may still request:
- A holding deposit, capped at one week’s rent.
- A tenancy deposit, subject to statutory caps and protection in a government-approved tenancy deposit scheme.
The pre-tenancy period and limits on initial rent
Once the tenancy agreement has been signed, the position changes. A limited amount of rent may be requested before the tenancy officially begins.
What the pre-tenancy period means in practice
The pre-tenancy period is the time between signing the agreement and the tenancy start date.
The maximum rent that can be requested
During this period:
- Where rent is payable monthly, a landlord may request up to one month’s rent in advance.
- Where rent is payable more frequently than monthly, such as weekly, a landlord may request up to 28 days’ rent.
Landlords must not demand more than these statutory limits. If they do, the tenant is entitled to refuse payment.
The pre-tenancy period rules do not apply in certain situations, including social and supported housing and where the tenancy has been agreed by a local authority to meet a homelessness duty.
Related: A landlord’s guide to legal responsibilities
Rent payment requirements once the tenancy has started
After the tenancy has commenced, rent must follow the payment structure set out in the agreement.
The agreed rent due date
Rent becomes payable on the date agreed in the contract, which is typically weekly or monthly.
A landlord cannot require a tenant to pay rent before the agreed-upon due date. Contract terms cannot override the statutory limits.
Advance payment clauses that cannot be enforced
The Act prevents landlords from using contractual wording to require substantial advance payments.
Any clause requiring quarterly, termly or other large lump-sum payments in advance will be of no effect.
For example:
- A requirement for six months’ rent upfront.
- A clause mandating instalments beyond the permitted one month (or 28 days during the pre-tenancy period).
Such provisions are rendered null and void and cannot be enforced.
Voluntary rent payments and what landlords must avoid
While the Act restricts what landlords can require, it does not prevent tenants from choosing to pay rent early once the tenancy is underway.
When early payment is lawful
After the tenancy has started, a tenant may voluntarily decide to pay more than one month’s rent in advance. A landlord may accept that payment.
What amounts to requiring or encouraging payment
The key distinction is that the payment must be genuinely voluntary. A landlord or letting agent must not:
- Require a larger advance payment.
- Suggest that paying more upfront will improve the tenant’s chances.
- Encourage early payment as a condition of granting or continuing the tenancy.
This distinction between voluntary payment and landlord requirement is likely to be central to enforcement decisions made by local councils.
Enforcement responsibilities and financial penalties
Local weights and measures authorities, typically trading standards teams within local councils, are primarily responsible for enforcement. Other local councils may also take action in their area.
Where a breach is identified, local councils have the power to impose financial penalties.
Civil penalties for first and repeat breaches
If a landlord or agent asks for, encourages or accepts rent before the tenancy agreement is signed, local councils may investigate and issue a civil penalty.
- A first breach can result in a civil penalty of up to £5,000.
- A repeat breach within five years can result in a civil penalty of up to £30,000 or prosecution.
Local councils may also require repayment of any rent that was unlawfully requested or accepted.
Evidence and investigatory powers
In investigating complaints, local councils may:
- Obtain witness statements.
- Review records or evidence of payment.
- Examine communications such as emails, text messages or voicemails.
- Require the production of tenancy agreements and payment histories.
Landlords defending themselves will be expected to provide relevant documentation, including copies of tenancy agreements and records of communication.
Compliance considerations for landlords and agents
Taken together, the statutory framework draws a clear line: no rent before signing, defined limits during the pre-tenancy period, unenforceable lump-sum clauses, and only genuinely voluntary early payments once the tenancy is underway. With enforcement led by local councils and significant financial penalties available, landlords should review their tenancy agreements and rent collection practices to ensure compliance. If you are unsure whether your current arrangements reflect the new legal position, Lovelle supports landlords across Lincolnshire, Hull & East Riding with compliant, fully managed lettings services. For guidance tailored to your circumstances, or for further landlord support, you can contact your local Lovelle branch.
