Why it matters
What Rent in Advance means for a landlord
Large upfront rent demands were used to choose tenants by how much cash they had rather than whether they could afford the rent. The Renters’ Rights Act limits them, so landlords who relied on several months up front for tenants with little credit history now need referencing, a guarantor or rent guarantee insurance instead. Treat advance rent and the deposit as two separate things with separate rules.
Worked example
How it plays out
Tim agrees to let a flat in Guildford at £1,500 a month to a tenant with a short credit history. He used to ask for six months up front. Now he takes nothing before the agreement is signed, collects the first month’s rent after signing and before the start date, and asks for a guarantor instead.
Common mistakes
Where landlords go wrong
- 01Taking rent to “secure” a property before signing.
- 02Keeping a clause requiring several months’ rent in advance.
- 03Confusing a holding deposit with advance rent.
What to do
A short checklist
- Remove advance rent clauses from templates.
- Collect only the first period’s rent between signing and the start date.
- Use referencing, a guarantor or insurance to manage risk instead.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
