Rent in Advance is a NO NO - Except pre tanancy *
The new PIMS Renters Rights compliant Tenancy Agreement is explicit - for these are the rights existing and new Tenants benefit from
The “rent” is
With the exception of the initial rent payment. The Landlord or Agent shall not thereafter require the Tenant to make any rent payment before the Rent Payment Day. The pre-Tenancy payment is permitted and required before the Tenancy Start Date.
The Landlord shall not require or accept more than one month’s rent in advance except where permitted by law.
Nothing in this Agreement prevents the Tenant from making a rent payment earlier on a voluntary basis.
No rent shall be requested or accepted from the Tenant until the Tenant has first been provided with a copy of this Agreement.
The Tenancy Start Date Clause – also affirms
If the Landlord is unable to provide vacant possession of the property on that date, the tenancy will commence on the date vacant possession is provided. The pre-Tenancy payment is permitted and required before the Tenancy Start Date.
Some agreements may state “keys will not be released until cleared funds received” which due to some cases we have dealt with we would caution against – our clause still clearly affirms contractual obligation “Tenancy payment is permitted and required before the Tenancy Start Date”
So no payment no start date.
LETS LOOK AT WHAT THIS CLAUSE ACTUALLY MEANS
The Landlord shall not require or accept more than one month’s rent in advance except where permitted by law.
- With the exception of the initial rent
payment. The Landlord or Agent shall not thereafter require
the Tenant to make any rent payment before the Rent Payment Day. The pre-Tenancy
payment is permitted
- or permitted if council prevention of homelessness incentive. BUT call the helpline to discuss - for if you accept the wrong tenant - removing them shall be an expensive problem
Nothing in this Agreement prevents the Tenant from making a rent payment earlier on a voluntary basis. - PIMS NOTE - YOU CANNOT INDUCE NOR IMPLY for that in itself woud make you eligible for a fine -
pre Tenancy Exclusion applies for first Payment
- No rent shall be requested or accepted from the Tenant until the Tenant has first been provided with a copy of this Agreement.
- The rent does NOT include utilities, council tax, television licence or communication services unless expressly stated in writing.
The Permitted Rent clauses are defined in the PIMS Tenancy agreement
1.1.
The rent
must be paid in advance on the rent payment day specified in this agreement. If the rent is late by more than 14
days, the Landlord can charge thereafter interest at
3% above the bank of England base rate and interest will be charged until the
date full payment is received.
1.2.
Obligations/liabilities of more
than one person shall be “joint and several” (which means
that, for example, they will each be liable for all sums due under this
agreement and not just for proportion of them)
1.3.
If rent is received from a third
party that will be accepted from them as the Tenant’s Agent. The
Landlord will not intend to create a tenancy with any person who pays rent on
the Tenant’s behalf. Where a third person pays the rent it is the Tenants
responsibility to notify the Landlord so they can ensure appropriate compliance
– as an example perform a required anti money laundering check as required by
law
1.4.
Council tax
- the Tenant is responsible for paying any council tax due in respect of the
property unless otherwise agreed in writing.
1.5.
Utilities, television licence and
communication services
The Tenant must arrange
for the supply of utilities to the property in their own name, including
electricity, gas or other fuel, water and sewerage, and must pay all charges
relating to those services.
The Tenant must arrange
and pay for any communication services at the property, including internet,
telephone (if applicable), cable television and satellite television.
The Tenant must pay for
a valid television licence for the property where required.
The Tenant remains
liable for all such charges until the tenancy has legally ended.
The Tenant must not,
without the Landlord’s consent, cause any utility or service to be
disconnected. Where a service is disconnected as a result of the Tenant’s act
or omission, the Tenant shall be responsible for the reasonable costs incurred
by the Landlord in reinstating that service. The Landlord may seek recompense.
1.6.
Rent increases
- The rent may only be increased by the Landlord in accordance with the law.
1.6.1.
The Landlord may propose an increase in
rent by serving written notice on the Tenant under Section 13 of the Housing
Act 1988 (as amended) using the prescribed statutory form.
1.6.2.
The notice must specify the proposed new
rent and the date from which the new rent will take effect and must give the
Tenant the minimum notice required by law.
1.6.3.
The Tenant has the right to challenge a
proposed rent increase by referring the notice to the First-tier Tribunal
(Property Chamber) before the proposed increase takes effect.
1.6.4.
If the Tenant makes such an application,
the Tribunal will determine the market rent for the property.
1.6.5.
No rent increase will take effect unless
the statutory notice procedure has been properly followed.
1.6.6.
The Landlord may not increase the rent
more frequently than permitted by law.
1.7.
The Tenant does not need to pay
rent for any day during which the property is uninhabitable.
This does not apply if the property is uninhabitable because the Tenant or
their guests or family did something (or failed to do something) which
invalidated the Landlord’s insurance policy in respect of the property.
1.8.
Should a Tenant request a spare or
lose a key or security device giving access to the property
and requires a replacement a fee can be charged for such. The Landlord or Agent
shall provide evidence in writing to the person liable for the payment to
demonstrate that such costs are reasonable and not exceeding £50
1.9.
Green deal
charges a payment towards energy efficiency improvements under a green deal
plan (within the meaning of section 1 of the energy act 2011) is a permitted
payment if the tenancy agreement requires the payment to be made. The charge
for this is nil unless otherwise specified here ____________
1.10.
Charges for variation, assignment
or novation of a tenancy,
should the Tenant request of the Landlord or Agent a variation, assignment or
novation of a tenancy [the substitution of a new contract in place of an old
one], the Landlord/Agent reserves the right to charge a fee that is not likely
to exceed £50 but may do so. The Tenant shall be notified in writing a summary
of the reasonable costs incurred.
Prohibition of rent in advance after lease entered into (except initial rent)
In the 1988 Act, after section 4A (inserted by section 1 of this Act) insert—
“4BAssured tenancy: prohibition of rent in advance (except initial rent)
(1)Terms of an assured tenancy which provide for when rent is due are of no effect so far as they provide for rent to be due in advance.
(2)But subsection (1) does not apply—
(a)to a tenancy entered into before the commencement date (which has the same meaning as in section 146(3) of the Renters’ Rights Act 2025),
(b)to an excepted tenancy, or
(c)to terms of any other assured tenancy so far as they provide for initial rent to be due during the permitted pre-tenancy period.
(3)Where terms of an assured tenancy providing for when the rent for a rent period is due are of no effect by virtue of this section, the tenancy has effect as if it provided for the rent for that rent period to be due on the substitute rent day for that rent period.
(4)In a case where the terms of the tenancy (after taking account of section 4A) are such that—
(a)one or more of the periods of the tenancy will be compliant rent periods, and
(b)the compliant rent periods have a regular pattern,
the regular rent day which falls during a rent period is the “substitute rent day” for the rent period.
(5)In any other case, the first day of a rent period is the “substitute rent day” for the rent period.
(6)The compliant rent periods of a tenancy “have a regular pattern” if those periods meet the following two conditions—
(a)all of the compliant rent periods will be the same length (and, for this purpose, all periods of one month are the same length);
(b)the rent for all of the compliant periods will be due—
(i)on the same day during each of the periods (such as the same day of the week in a weekly period or the same date in the month in a monthly period), or
(ii)on the same description of day during each of the periods (such as the last day, or first weekday, of a period);
and that day, or day of that description, is the “regular rent day”.
(7)The condition in subsection (6)(a) is met even if the first period of the tenancy is of a different length from all the other compliant periods; and, in such a case, the condition in subsection (6)(b) is met even if the rent for the first period of the tenancy is due on a different day, or description of day, from all the other compliant periods.
(8)For provision enabling a holding deposit to be used to pay initial rent due during the permitted pre-tenancy period, see Schedule 2 to the Tenant Fees Act 2019.
(9)The Secretary of State may, by regulations, amend this section for the purpose of making provision about the descriptions of rent due in advance to which subsection (1) does not apply.
(10)Regulations under subsection (9)—
(a)may make different provision for different purposes;
(b)are to be made by statutory instrument.
(11)A statutory instrument containing regulations under subsection (9) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
(12)In this paragraph—
“compliant rent period”: a rent period is a compliant rent period if the rent for the period is due during the period — and, in determining this, the effect of this section on when rent is due must be disregarded;
“due in advance”, in relation to rent, means due before the rent period for which it is payable;
“excepted tenancy” means—
(a)
an assured tenancy of social housing (within the meaning of Part 2 of the Housing and Regeneration Act 2008) if the landlord is a private registered provider of social housing;
(b)
an assured tenancy granted pursuant to Part 7 of the Housing Act 1996 (homelessness);
“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;
“regular rent day” has the meaning given in subsection (6)(b);
“rent period” means a period for which rent is payable under the assured tenancy;
“substitute rent day” means the day determined in accordance with subsection (4) or (5).”