Rules around rent in advance have changed under the Renters’ Rights Act. You can no longer take rent before both you and your tenant have signed the tenancy agreement.

Moreover, you cannot include clauses that require rent to be paid in advance before the tenancy starts or that demand more than one month’s rent up front.

This change represents a significant shift for landlords who traditionally relied on taking several months of rent in advance – particularly when letting to students, international tenants, or those without a UK rental or credit history.

Understanding these restrictions is now a legal necessity to avoid heavy fines and non-compliance.

1. The new rules on pre-tenancy rent payments
2. Changes to the first month’s rent or initial rent
3. Managing lump-sum rent payments
4. FAQ: Rent in advance and the Renters’ Rights Act

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The new rules on pre-tenancy rent payments

The Renters’ Rights Act introduces new rules about when landlords can legally collect rent. Here’s what these changes mean for pre-tenancy payments and how to stay compliant. You can find full details on how OpenRent handles the changes to rent in advance.

Can I still take rent before a tenancy agreement is signed?

No. You cannot legally collect rent until the tenancy agreement has been signed by all parties and is “in force”. If you accept rent before this point, you are in breach of the law and could face a civil penalty of up to £7,000 from your local authority.

What exactly is banned?

The restriction applies to any rent requested or accepted before the tenancy formally begins. In practice, this means you cannot ask for, or take, rent in advance until the agreement is signed and active.

Holding deposits and tenancy deposits are not included in this ban. A holding deposit can still be used towards the first rent payment, but only once the tenancy has officially started and within the allowed period.

Can tenants choose to pay up front anyway?

No, the rules are very strict. Section 5 of the Tenant Fees Act 2019 now includes anti-avoidance measures, which are similar to those used to ban rental bidding. You must not:

• accept a prohibited pre-tenancy rent payment from a tenant, guarantor, or any other “relevant person”
• invite or encourage a relevant person to make such a payment
• use a third party to get around the rules, including accepting rent from a third party or encouraging a third party to pay

Even if a tenant offers several months’ rent upfront, you are not allowed to accept it. A “relevant person” includes the tenant and anyone acting for them, such as a guarantor.

If these rules are breached, you risk a financial penalty where the local authority is satisfied that a breach has taken place.

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Changes to the first month’s rent or initial rent

The rules around the first month’s rent, or the “initial rent,” have also changed under the Renters’ Rights Act. For landlords, this means adjusting how and when you request that first payment.

The aim is to make rent collection fairer for tenants while still giving you flexibility to manage payments, especially when the tenancy start date doesn’t align neatly with the calendar month.

What does initial rent mean?

The term “initial rent” refers to the rent payable for the first rental period, or for any period that ends within the first 28 days of the tenancy.

The rule allows some flexibility for landlords. For example, the first rent period can be shortened to match a tenant’s payday, or to align all rent payments to a consistent date for landlords managing multiple properties.

However, you can no longer extend the first rent period to collect extra days of rent upfront. The first rent period must not be longer than a standard monthly cycle, and after that rent must be charged on a regular calendar month basis.

When can the initial rent be collected?

You must not take the “initial rent” before the tenancy agreement is signed. However, you can request and receive it during the “permitted pre-tenancy period.”

This period begins once the tenancy agreement is signed and ends the day before the tenancy officially starts. During this time, you can collect the initial rent from the tenant.

Can rent be charged for more than one month at a time?

No, under the Renters’ Rights Act, rent cannot be charged for more than one calendar month at a time. Any clauses in new tenancy agreements that set longer rent periods, such as quarterly or termly payments, are invalid.

This applies only to new tenancies starting after 1st May 2026; agreements signed before that date are not affected.

However, the first rent period can be shorter than a full month if needed. For example, if a tenant moves in partway through a month, the initial period can run from the move-in date to the end of that month, with regular monthly payments starting thereafter.

How should landlords handle the first rent payment?

You need to be careful with when you request the initial rent. Asking for it before the tenancy agreement has been signed counts as a prohibited pre-tenancy payment.

The proper sequence for collecting the first rent might look like this:

1. Tenant pays a holding deposit, which should be no more than one week’s rent.
2. Tenant referencing is completed, and the landlord confirms they will let the property.
3. Tenant signs the tenancy agreement and pays the tenancy deposit.
4. Landlord signs the tenancy agreement.
5. The agreement is now in place, so the landlord can request the initial rent (usually, minus the holding deposit already paid).
6. Tenant pays the initial rent within the permitted pre-tenancy period.
7. Tenant moves in on the agreed start date of the tenancy.

One challenge to note is that if the tenant doesn’t pay the first month’s rent before moving in, you may still be legally required to allow them to take possession, potentially leaving rent unpaid from day one.

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Managing lump-sum rent payments

Here’s what you need to know about taking big upfront rent payments and staying on the right side of the law.

Are landlords allowed to take large lump-sum rent payments?

No. After 1st May 2026, you are no longer able to include terms in tenancy agreements that require tenants to pay rent in advance beyond the initial rent (which can only be collected during the permitted pre-tenancy period).

This means you are no longer allowed to request large lump-sum payments, such as 6 months’ rent upfront, which have often been used when renting to students or tenants without a UK rental history.

Keep in mind, these restrictions apply only to new tenancies created after the Act’s commencement date (1st May 2026). Any clauses in existing tenancy agreements that require rent to be paid quarterly or every 6 months will continue to be valid.

How does this differ from pre-tenancy rent payments?

Any pre-tenancy rent payments (taken before the tenancy agreement is signed) are prohibited, since 1st May 2026.

However, requesting a lump sum after the agreement has been signed doesn’t automatically breach the Tenant Fees Act.

That said, tenants are under no obligation to agree to such payments, and you cannot make signing the tenancy conditional on paying rent in advance.

Any clause attempting to require this is unenforceable, meaning tenants can only choose to do so voluntarily.
Any rent paid in advance must clearly cover specific rent periods. If it doesn’t, it may be treated as a tenancy deposit, which under the Tenant Fees Act is capped at 5 weeks’ rent. Exceeding this would be a breach of the law.

FAQ: Rent in advance and the Renters’ Rights Act

The rules around rent in advance are changing, and many landlords are unsure how it affects them. Here we answer the questions landlords ask most often.

Grounds for Repossession 1. Can tenancy agreements require rent to be paid in advance?

No. The Renters’ Rights Act made any terms in a tenancy agreement that require rent to be paid before the start of a rent period legally unenforceable. These terms have no effect, but they don’t breach the Tenant Fees Act.

2. What is considered rent due in advance?

Rent is treated as due in advance if it’s requested before the start of the period it covers. For example, if a rent period runs from the 26th of one month to the 25th of the next, the rent cannot be demanded before the 26th.

3. Can landlords accept early rent voluntarily paid by tenants?

Yes. If a tenant chooses to pay rent ahead of schedule – for example, paying rent due on Christmas Day a few days early – the landlord can accept it. Since this occurs after the tenancy agreement has been signed, it doesn’t violate the Tenant Fees Act.

4. Are tenants still be able to pay rent in advance under the new rules?

Yes. Once both parties have signed the tenancy agreement, tenants can pay rent in advance, such as paying a full term’s rent upfront. You may request such payments, but you cannot include a clause forcing tenants to pay early; the tenant must agree voluntarily.

5. What happens if a tenant pays rent before the tenancy is signed?

Any rent paid before the tenancy agreement is signed counts as a prohibited pre-tenancy payment under the Tenant Fees Act. You must return these payments immediately to avoid breaching the law.