- Under the Renters’ Rights Act, landlords can no longer ask most new tenants to pay 6 months’ rent upfront to secure a property.
- Landlords can still ask for the first month’s rent upfront, but only after the tenancy agreement has been signed.
- If you’re worried about missed rent, J Property Management’s Guaranteed Rent service means you can protect your income without needing to ask tenants for big payments upfront.
One of the biggest questions we’ve been asked since the Renters’ Rights Act came into play is whether landlords can still ask tenants to pay a chunk of rent upfront.
For years, it wasn’t unusual for landlords to ask for 6 or even 12 months’ rent in advance, especially if they were renting to students, international tenants or someone without a UK guarantor. It gave landlords a level of reassurance that, whatever happened, their rental income was protected for the first few months of the tenancy.
The problem? The rules have now changed.
While landlords can still ask for the first month’s rent before a tenant moves in, they can no longer ask for 6 months’ rent in advance. That means landlords need to think about managing risk in different ways.
At J Property Management, our Rent Guarantee service is designed for exactly this. For just 12% of the monthly rental income, we’ll manage every aspect of your rental property and pay you on time every month, even if there are tenant delays.
That way, you don’t need to worry about chasing tenants or wondering when the money will land in your account. We have it covered.
To find out more, get in touch with the team today.
Can Landlords Still Ask For Some Rent Upfront?
Yes, but only the first month’s rent and only after the tenancy agreement has been signed.
Under the Renters’ Rights Act, landlords and letting agents can no longer ask for or accept rent before both parties have signed the tenancy agreement. Once the agreement has been signed, landlords can request the first month’s rent before the tenancy starts, but no more.
This is one of the biggest changes introduced by the new laws and applies to most new assured periodic tenancies in England.
For landlords, it’s important to get the timing right. If you ask a tenant to transfer rent before the tenancy agreement has been signed, you could be breaking the law. Likewise, even if a tenant offers to pay several months upfront before contracts have been signed, it’s important that you don’t accept the payment.
Why Have The Rules Around Asking For Rent Upfront Changed?
The Government introduced the changes to make renting fairer. Over the past few years, it has become more common for landlords to ask certain tenants to pay six months’ rent upfront.
While this often came from a genuine desire to protect their financial risk, it also created a barrier for many renters who could afford the monthly rent but didn’t have thousands of pounds available before moving in.
The new rules are designed to make the system fairer by limiting how much landlords can ask for before a tenancy starts. For landlords, however, it means they have to be more creative when it comes to protecting their rental income.
What Can Landlords Do Instead Of Asking For Rent Upfront?
Although asking for 6 months’ rent upfront is no longer an option, there are still plenty of ways landlords can reduce their financial risk.
Tenant Referencing
The first is making sure you carry out thorough tenant referencing before offering someone the tenancy. A good referencing process should look at a tenant’s ability to afford the rent, their employment history, previous landlord references and credit history. While no tenant can ever be guaranteed, taking the time to properly look at applications can massively reduce the chances of rent arrears later on.
If you need help with this, our Let Only service can help you find reliable tenants, whilst leaving wider property management to you. You can see our guide on finding reliable tenants to find out more.
Guarantors
Another thing you can do is ask for a guarantor. This can provide an extra level of security if the tenant later struggles to pay their rent.
Rent Guarantee Services
A final option that is becoming more popular is working with a property management company that offers a Guaranteed Rent service. Guaranteed Rent means that the property management company pays you your monthly income regardless of whether the tenants have paid. They then take on the responsibility of chasing up payments.
If this sounds like an option you’d be interested in, contact the J Property Management team today.
How Does Guaranteed Rent Work?
Guaranteed Rent works by giving landlords a reliable monthly income, regardless of whether a tenant pays on time.
Instead of worrying about late rent or wondering when their next payment will arrive, landlords get their rent paid to them every month, while the property management company chases tenants for them.
Alongside this, they also deal with arranging maintenance and handling the day-to-day management of the property, so you don’t have to.
How Much Does Guaranteed Rent Cost?
At J Property Management, our Guaranteed Rent service costs 12% of your monthly rental income.
For that fee, you get much more than guaranteed rent alone. We also fully manage your property, taking care of everything from tenant sourcing and referencing to rent collection, maintenance, inspections and legal compliance.
Rather than paying separately for different services, you’ll have one set monthly fee and the reassurance of knowing your rental income is protected. For many landlords, especially those with mortgages or fixed monthly costs, this allows them to enjoy the benefits of being a landlord without the uncertainty that can come with it.
What Does J Property Management’s Guaranteed Rent Service Include?
At J Property Management, our Guaranteed Rent services is designed to give landlords complete peace of mind, not just guaranteed payments.
As part of the service, we provide:
- Guaranteed monthly rental income.
- Full property management.
- Tenant sourcing and referencing.
- Rent collection.
- Maintenance coordination.
- Legal and compliance support.
We also pride ourselves on doing things differently.
There are no hidden management fees, maintenance requests are responded to quickly, and we’re committed to keeping landlords informed throughout the tenancy.
Most importantly, you’ll always know who you’re dealing with. Rather than being passed between different departments, you’ll have an experienced property management team who understand both your property and your needs.
To speak to the team about our Guaranteed Rent Service, get in touch today.
