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No More Rents in Advance The Renters’ Rights Act will end the practice of accepting large amounts of rent in advance from tenants looking to secure a tenancy. The Tenant Fees Act 2019 will be amended to prohibit landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into. Only one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) will be acceptable once a tenancy agreement has been signed and before commencement.
KEY IMPACTS ON LANDLORDS
HOW LANDLORDS CAN ADAPT
& Rent Period A rent period cannot be longer than one calendar month. Holding Deposits and Tenancy Deposits Accepting a Holding Deposit and the Tenancy Deposit prior to the agreement being signed, will still be allowed. Limit on Rent in Advance Landlords will be restricted to asking for only one month's rent in advance, whether for a tenancy or a license. Prohibited Pre-Tenancy Rent Payments The bill introduces "prohibited pre-tenancy rent payments" as a new category under the Tenant Fees Act, meaning landlords and agents cannot ask for or accept the initial rent payment until the tenancy agreement is signed. No Legal Effect of Advance Rent Terms Any terms in a tenancy agreement stating that rent is due in advance will be null and void and unenforceable.
Review tenancy agreements to ensure they comply with the new laws. Revise referencing criteria to minimise the risk of issues later. Ensure timings are accurate and compliant when accepting the first months Consider Rent Guarantee Insurance to protect against arrears. Engage with a specialist letting agent who can help navigate the changing legal landscape. rent and signing the tenancy agreement .
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