Under the Renters’ Rights Act, landlords and letting agents can no longer invite, encourage or accept rent payments from a tenant before a tenancy agreement has been entered into. Any clause within a tenancy agreement that requires payment in advance will be unenforceable.

Once the tenancy agreement is signed, and before the tenant moves in, a landlord can invite and accept a maximum of one calendar month’s rent in advance. 

Enforcement and Penalties 

To ensure compliance, this type of payment will be treated as a prohibited fee under the Tenant Fees Act 2019. Breaches could result in enforcement action and financial penalties. 

How to stay compliant 

Landlords and letting agents should carry out robust affordability and referencing checks on all prospective tenants as part of the pre-tenancy process. In addition, landlords who previously chose not to take a security deposit should do so. 

By following these steps, landlords and agents can protect themselves from enforcement action.