The Renters’ Rights Act 2025 does not just introduce new rules around rent in advance. It changes how landlords need to think about the tenancy process from start to finish.
For many, the key question is not “what are the rules?” but “what do I need to do differently now?”
A simple way to approach this is to break it down into three areas: what needs to stop, what needs reviewing, and what landlords should do instead.
These rules apply to assured periodic tenancies in England and do not apply retrospectively to tenancy agreements signed, or rent in advance payments made, before the new provisions take effect.
Related: Protecting your rental income fairly: compliant affordability checks and safer screening policies
What needs to stop immediately
Taking rent before the agreement is signed
One of the most important changes is also the most straightforward.
Landlords and agents can no longer ask for, encourage or accept rent before the tenancy agreement has been signed by both parties.
This applies in all situations, including where a tenant offers to pay early to secure the property.
If rent is taken before the agreement is in place, it falls outside the permitted framework.
Relying on upfront rent to secure a tenant
In the past, some landlords may have used rent in advance as a way to reduce uncertainty or move quickly in competitive markets.
That approach is no longer available.
Even where a tenant is willing to pay several months upfront, this cannot be requested or encouraged before the agreement is signed.
What landlords should now review
How much rent is requested before move-in
Once the tenancy agreement has been signed, rent can be requested before the tenancy begins, but only within strict limits:
- Up to one month’s rent, where rent is paid monthly
- Up to 28 days’ rent where rent is paid more frequently
Any request beyond this can be refused by the tenant.
This creates a clear, consistent cap across all tenancies.
Existing tenancy agreements
Landlords should also review any existing agreements that include clauses requiring:
- Quarterly rent
- Termly payments
- Larger upfront instalments
Under the new rules, these clauses are not enforceable.
Even if agreed, they cannot override the legislation.
What changes once the tenancy begins
Rent must follow the agreed schedule
After the tenant has moved in, rent must be paid on the agreed-upon due date.
Landlords cannot require payment earlier than this, regardless of what is written in the tenancy agreement.
Voluntary payments are still allowed
There is one exception to the rules.
Tenants can choose to pay rent early if they wish. However, this must be entirely voluntary.
Landlords and agents must not suggest or encourage tenants to pay more than the permitted amount in advance.
What landlords should do differently now?
Focus more on tenant checks
With limits on upfront rent, landlords can no longer rely on the payment structure to manage risk.
Instead, greater emphasis should be placed on:
- Thorough referencing
- Affordability checks
- Verifying income and employment
These steps now play a more important role in decision-making.
Keep processes consistent
The new rules introduce a more structured approach to rent handling.
For landlords, this means ensuring that:
- Rent is only requested at the correct stage
- Payment amounts stay within permitted limits
- Communication with tenants is clear and consistent
Consistency reduces the risk of mistakes and helps ensure compliance.
Be mindful of how requests are made
It is not just what is requested that matters, but how it is communicated.
Local councils can review emails, messages and other records to determine whether rent has been requested or encouraged outside the permitted limits.
Clear, neutral communication is essential.
Related: How rental income reporting will work under Making Tax Digital
What happens if the rules are not followed
Local councils are responsible for enforcement and can investigate where rent has been handled incorrectly.
They may review:
- Payment records
- Communication with tenants
- Evidence of how payments were requested
Penalties can include:
- Up to £5,000 for a first breach
- Up to £30,000 or prosecution for repeat breaches within five years
Landlords may also be required to repay any rent taken outside the permitted framework.
A more structured approach going forward
Taken together, these changes introduce a clearer, more consistent way of handling rent in advance.
For landlords, the focus shifts from flexibility to process.
- Agreements must be completed before rent is handled
- Limits must be followed during the pre-tenancy period
- Payment schedules must be respected once the tenancy begins
Understanding these steps is key to staying compliant.
Moving forward with clarity
The Renters’ Rights Act 2025 sets clear expectations around how rent in advance should be managed.
For landlords, the priority is to ensure that each stage of the tenancy process aligns with these requirements.
Newton Fallowell supports landlords with practical, local expertise and clear guidance on evolving legislation. If you would like to review your current processes or agreements, your local Newton Fallowell branch can provide clear, practical advice tailored to your situation.
