What is Advance Rent?

Advance rent is any rent payment required before the tenant moves in, beyond the first month's rent.

From the commencement date (Renters' Rights Act 2025)

The Renters' Rights Act 2025 caps advance rent:

Maximum advance rent: one month

  • You cannot require more than one month's rent in advance
  • This is in addition to (not instead of) the tenancy deposit
  • The deposit cap remains at 5 weeks' rent (or 6 weeks for rent over £50,000/year)

What this means:

  • Maximum upfront payment = 1 month rent + 5 weeks deposit
  • For a £1,500/month rent: £1,500 + £1,731 = £3,231 maximum
  • You cannot request 3, 6, or 12 months upfront

Implications:

  • Cannot use advance rent to offset referencing concerns
  • International tenants may need guarantors instead
  • Higher risk tenants may need additional safeguards (guarantors, rent guarantee insurance)

Penalties for Non-Compliance

  • Requesting excess advance rent is a breach of the Act
  • Civil penalties up to £7,000 for initial breaches
  • Civil penalties up to £40,000 for serious or repeated breaches
  • Tenants may be able to recover excess payments

Need Help With Advance Rent?

With advance rent capped at one month from the commencement date, alternative safeguards like guarantors and rent insurance become more important. We help identify and secure suitable tenants within the new rules. Get in touch to learn more.