With the Renters Rights Bill enacted from May there is confusion over what money a landlord or agent may receive before a tenancy starts, and what can be requested once the tenancy has commenced. PIMS has tightened its tenancy agreement wording this week to clarify our position and help landlords avoid a costly mistake.
The required clause as included in the PIMS Tenancy Agreement 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 initial
rent payment for the first rental period is permitted and required before the
Tenancy Start Date (such permitted payment not exceeding 28 days’ rent where
rent is payable weekly or one month’s rent where rent is payable monthly)
The issue is not simply whether rent can be paid in advance. The real question is when the payment is being made, why it is being made, and whether the landlord or agent has requested, required, invited or encouraged the tenant to pay before the rent payment day.
The difference between pre-tenancy payments and rent after commencement
Payments before the tenancy commences are dealt with differently from rent payments after the tenancy has started. The pre-tenancy position is linked to the tenant fee ban rules, whereas the new restrictions on rent in advance after the tenancy has been entered into are part of the Renters’ Rights Act framework from 1 May 2026.
In simple terms, PIMS considers that an initial pre-tenancy rent payment is permitted and required before the tenancy start date, but once the tenancy has commenced the landlord or agent should not require the tenant to pay rent before the rent payment day.
That does not prevent a tenant from paying early of their own free will. The important distinction is that the tenant must not be pressured, required or encouraged to do so.
Using the PIMS Tenancy Agreement as an example
The PIMS Tenancy Agreement has been tightened to make this position clearer. The payment wording confirms that, with the exception of the initial rent payment, the landlord or agent shall not require the tenant to make any rent payment before the rent payment day.
The agreement also makes clear that the pre-tenancy payment is permitted and required before the tenancy start date, and that the landlord shall not require or accept more than one month’s rent in advance except where permitted by law.
Importantly, the agreement does not prevent the tenant from making a rent payment earlier on a voluntary basis. It also confirms that no rent shall be requested or accepted from the tenant until the tenant has first been provided with a copy of the agreement.
The tenancy start date wording also helps. If the landlord is unable to provide vacant possession on the intended date, the tenancy will commence when vacant possession is provided. This avoids uncertainty where the tenancy cannot practically begin on the intended start date.
View the PIMS Tenancy Agreement
Why PIMS is cautious about “no keys until cleared funds” wording
Some tenancy agreements or agency processes use wording such as “keys will not be released until cleared funds are received”. On the surface, many landlords will feel this is sensible. PIMS understands that view, but we would be cautious about including this wording in a tenancy agreement.
The problem is that a “no keys” clause can become onerous, ambiguous and difficult to apply fairly. It may not properly answer the practical question: if the tenant pays a week late, what happens during that week? Can the landlord charge for the void period? Was possession under the tenant’s control? Could the landlord’s position be challenged as unfair or disproportionate?
PIMS prefers wording that clearly confirms the contractual position: the pre-tenancy payment is permitted and required before the tenancy start date. In plain terms, no payment may mean no start date.
The real-world risk: contractual theory may not save you
Landlords often assume the answer is simple: if the tenant has not paid, do not release the keys. The legal argument may appear to be that there has been offer, acceptance and consideration, and that the tenant has failed to perform their side of the bargain.
However, real cases are not always that tidy. PIMS has dealt with a case where this type of argument was used in the context of an interim possession order. The judge initially rejected the contractual arguments, leaving the member exposed to very serious legal aid cost consequences. PIMS ultimately helped achieve a controlled outcome and blocked the costs exposure on appeal through a different tactical route, but the case showed how dangerous it is to assume that a court will automatically accept a landlord’s preferred contractual analysis.
The lesson is clear. Do not rely on rough wording, assumptions or “common sense” alone. The wording, the evidence, the conduct of the landlord or agent, and the proportionality of the response can all matter.
The hard question: why has the tenant not got the money?
In practice, the problem often arises when the tenant says they do not have the money ready. At that point, landlords should not only ask what the agreement says. They should ask why this issue has arisen at all.
This is where vetting standards matter. A landlord is not lending the tenant a small item. They are allowing occupation of a valuable property, often worth hundreds of thousands of pounds. It is not unreasonable to assess affordability properly, check the tenant’s financial position and consider whether a guarantor is required.
A tenant may have a good job today, but a tenancy decision is not just a short-term decision. Under the new Renters’ Rights framework, the landlord is entering a longer and more regulated relationship. The decision must be based on long-term risk, not just a confident application form.
Practical negotiating positions
Where a tenant says they have not got the money ready, the landlord’s position may depend on the strength of the vetting and the security behind the tenancy.
- A qualified guarantor may reduce the risk. PIMS is generally more relaxed where there is a properly checked guarantor, especially where the guarantor is a homeowner and the documentation has been completed correctly.
- Refusing to release keys may be understandable, but must be handled carefully. The landlord may feel the tenant is in breach, but the legal and practical consequences can be more complicated than expected.
- The safest position is prevention. Proper vetting before agreement is better than trying to rescue the position after the tenant cannot pay.
Five practical lessons for landlords and agents
- Improve vetting standards. Strong vetting will often push unsuitable or ill-intentioned applicants towards another landlord.
- Use guarantors where appropriate. Guarantors are often the landlord’s friend, not the tenant’s. A guarantor can apply pressure that the landlord cannot safely apply.
- Check bank statements. If the tenant is expected to pay rent and move into a valuable property, it is reasonable to consider whether they actually have the funds.
- Do not blindly trust the current landlord’s reference. Some landlords will say almost anything to move a difficult tenant on.
- Use a proper tenant credit check. The PIMS tenant credit check can help identify previous addresses, which may assist in locating former landlords who are no longer beholden to the tenant and may be more candid.
Use PIMS Tenant Credit Checks
Do not guess — ask before you act
Renters’ Rights has changed the risk profile for landlords and agents. A phrase in an email, a text asking for payment, or a poorly drafted clause can create unnecessary problems.
If you are unsure whether a payment can be requested, accepted or treated as voluntary, do not guess. PIMS members should call the PIMS helpline before taking action.
Need help with rent payments, tenancy wording or tenant vetting?
PIMS members can contact the helpline for practical guidance before a mistake is made. Prevention is usually cheaper, quicker and safer than trying to fix the problem later.
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