Q. I am confused by the proposed rules in the Renters Rights Bill about rent in advance. Are we being expected to rent to tenants without getting any rent upfront at all?

A. The new rules are set out in sections 9 and 10 of the current version of the Renters Rights Bill. (Note that the section numbers may change if further amendments are made to the bill). Section 9 sets out amendments to be made to the Housing Act 1988. This will prohibit rent in advance. By this, they mean that rent should only be payable during the period to which it relates. So, if a periodic tenancy runs from the 3rd day of the month to the 2nd day of the next month, the rent for that period must be payable within that period. The landlord is not allowed to ask for it to be paid earlier.

There is an exception though for ‘initial rent’. This can be paid during a ‘permitted pre-tenancy period’. These terms are defined in s9(12) as follows: “initial rent” means rent that is
payable for:
(a) the first rent period, or
(b) any later rent period which ends during the initial 28 day period; and here “initial 28 day period” means the period of 28 days beginning with the first day of the first rent period.
“permitted pre-tenancy period” means the period that —
(a) begins when the tenancy is entered into, and
(b) ends with the day before the first day of the tenancy…

So, you can require the first month’s rent to be paid in advance of the tenancy starting provided the landlord and tenants have signed the tenancy agreement.