Assured periodic tenancies: a guide for landlords
Rent in advance and deposits
You or your letting agent must not accept, ask for or encourage tenants to pay rent before you both sign the tenancy agreement. This is called asking for ‘rent in advance’.
Your tenant can make a complaint if they are asked to pay rent in advance.
You can only ask for rent in advance during the ‘pre-tenancy period’. This is after you and your tenant have signed the tenancy agreement and before the date the tenancy starts. You can usually only ask for either one month or 28 days’ worth of rent before the tenancy starts.
This does not apply to Private Registered Providers of social housing (PRPs).
Asking tenants to pay a deposit
Before a tenancy agreement is signed, you or your letting agent can ask for the following deposits:
- a holding deposit (this can be up to one week’s rent), to reserve the property while you carry out checks
- a tenancy or security deposit before the tenancy agreement is signed
The maximum tenancy or security deposit you can ask for is:
- up to 5 weeks’ rent if the rent for the year is less than £50,000
- up to 6 weeks’ rent if the rent for the year is £50,000 or more
You must keep your tenant’s deposit safe using a government-approved tenancy deposit protection scheme.
Before the tenancy starts (the ‘pre-tenancy period’)
The period of time after the tenancy agreement has been signed and before the tenancy starts is known as the ‘pre-tenancy period’. During this period, you or your letting agent can ask the tenant to pay some rent before they move in.
If your tenant will be paying rent monthly, the maximum amount you can usually ask for is one month’s rent.
If they will not be paying rent monthly, the maximum amount you can usually ask for is 28 days’ rent.
When you can ask for more rent
You can ask your tenant for more than one month or 28 days’ rent in advance if:
- the tenancy was agreed by the local council because they were legally homeless
- your property will be let as either social or supported housing
If someone reports you
Your local council can investigate if you or your letting agent are reported for asking for rent in advance before the tenancy agreement has been signed.
You or your letting agent could still be reported if the tenant:
- did not agree to pay rent in advance
- offered to pay rent in advance which you then accepted
- has already moved in
If the local council finds that you or someone acting on your behalf has illegally asked a tenant to pay rent in advance, they can ask you to repay the money.