
Rent in Advance Under the Renters’ Rights Bill: The New Rules Explained
The Renters’ Rights Act ends the practice of accepting large lump-sum rents in advance from tenants. From commencement, landlords can only take one month upfront, no rent before signing, and all new tenancies must run on monthly rent periods. Here’s how the new rules work - and what landlords must change and it is quite complicated!
The Renters’ Rights Act overhauls how upfront rent can be requested and paid. The aim is to stop tenants being asked for large lump-sums to secure a home, while still letting landlords collect the first rent correctly and on time. Headline: no more than one month’s rent up front and tighter rules on when that first payment can be taken.

🔵 The Core Changes (Plain English)
Cap: One month maximum upfront
Landlords will be prohibited from demanding more than one month’s rent in advance to secure a tenancy. This ends the practice of asking for, typically, 3, 6, or 12 months up front.
No pre-tenancy rent before the contract is signed
You cannot accept any rent before both parties have signed and the tenancy is “entered into.” Taking rent earlier becomes a prohibited pre-tenancy payment under the Tenant Fees Act (TFA) and risks a financial penalty. Holding and tenancy deposits remain permitted.
“Initial rent” can only be taken in a tight window
You may request the first rent after signing but before move-in - i.e., during the “permitted pre-tenancy period” (from execution of the agreement up to the day before the tenancy starts).
Rent periods can’t exceed one month
All new assured tenancies created under the Bill must have rent periods of no more than one calendar month. Clauses requiring termly/quarterly rent become unenforceable for new tenancies.
No enforceable clauses requiring rent “early” or in large lumps
Any clause that forces payment before the first day of a rent period, or more than one month at a time, will have no legal effect once the Act is in force. Anti-avoidance wording also prevents “inviting or encouraging” a tenant/third-party to make a prohibited pre-tenancy rent payment.

🔵 Transitional Rules You’ll Actually Use
Existing tenancies that already require rent in advance
If an agreement was in place before commencement and requires rent payable in advance, you don’t have to amend it. You can keep collecting as per that contract until that tenancy ends.
If a tenancy was entered into before commencement, you don’t need to amend the contract or pay any of that rent back when the new law comes into effect.
Once a new tenancy arises (e.g., after the transition ends or on grant to a new tenant), the new rules apply: one month cap, no pre-tenancy rent, monthly rent periods only.

🔵 How the First Payment Works (Step-by-Step)
→ Holding deposit (optional) is taken (capped at one week’s rent, same as today) and may be offset against the first rent.
→ Both parties sign the tenancy agreement; the tenancy is now “entered into.”
→ You are now inside the permitted pre-tenancy period → you can request and receive the initial rent (up to one month).
→ Tenancy starts; thereafter rent falls due on or after day 1 of each monthly period - not earlier.

🔵 Voluntary Upfront Payments
Can a tenant still pay more than a month up front if they want to?
Only after signing can a tenant voluntarily pay ahead. You cannot require it, and any clause that tries to force it is unenforceable. If they do pay, clearly allocate it to specific monthly rent periods to avoid it being treated as a deposit.
Watch the deposit cap
If “extra” money isn’t clearly rent for specific months it may be treated as a tenancy deposit - then the TFA caps apply: generally 5 weeks’ rent (or 6 weeks if annual rent ≥ £50k), and it must be protected.
Students and termly payments
Termly/quarterly requirements will not be enforceable for new tenancies; students can only pay ahead voluntarily after signing, and only in a way that aligns with monthly rent periods.
Asking early, via “third parties,” or hinting at conditions
The anti-avoidance wording blocks inviting/encouraging pre-tenancy rent, including via a third party (e.g., “ask your parent to transfer 3 months now”). Local authorities can fine for breaches.

🔵 What Landlords Should Do Now
🔹 Map your stock: flag any existing agreements with rent-in-advance clauses and set reminders for when they end.
🔹 Update templates & onboarding: remove any wording that (a) asks for rent before signing, (b) requires more than1 month upfront, or (c) makes rent due before day 1 of a period. Build the permitted pre-tenancy period step into your workflow.
🔹 Tighten your “initial rent” process: sign → request initial rent → start of tenancy. Don’t blur these steps.
🔹 Communicate clearly to applicants: publish the asking rent (bidding is also being curbed) and your exact payment timeline so there are no surprises.

🔵 Bottom Line
Expect a strict one-month upfront limit, a ban on pre-signature rent, monthly rent periods only, and no enforceable clauses demanding early or lump-sum rent - backed by penalties and anti-avoidance wording. For legacy contracts, the transitional saving buys time, but new tenancies must be drafted and onboarded to the new rules.
We suggest that landlords do not try and look for loopholes in this particular part of the new legislation - litigation can be costly!
At Cope & Co., we’re here to make sure compliance never feels like a burden. From keeping your paperwork watertight to navigating the Renters’ Rights Act with confidence, our team can help you stay ahead and protect your income. Get in touch today to see how we can support you.

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