Rent Payments After the Renters’ Rights Act: What Landlords Need to Know

 

The Renters’ Rights Act has changed a lot for landlords, but one of the areas that needs particular care is rent. How much you can ask for, when you can ask for it, and how rent increases are handled now need to be approached more carefully than before.

For landlords, this is not about panic. It is about process. If you understand the new rules and update the way you handle rent payments, you can protect your position, avoid unnecessary disputes, and keep your tenancies running smoothly.

Below, we break down the key changes in plain English.

Why rent payments now need closer attention

From 1 May 2026, new rules apply to most private rented tenancies in England. These changes affect how landlords and agents deal with:

• Rent in advance
• Payments before a tenancy begins
• Rental bidding wars
• Rent increases
• Payment clauses in tenancy agreements

The direction of travel is clear: the system is moving away from large upfront payments and towards a more structured, transparent rental process.

Which tenancies are affected?

The rules generally apply to assured tenancies in England, including tenancies that were previously assured shorthold tenancies before the new rules came in.

In simple terms, this will usually include a tenancy where:

• The property is the tenant’s main home
• The tenant has exclusive use of the whole property or a room
• The rent sits within the relevant assured tenancy limits
• The tenant is an individual rather than a company
• The landlord does not live in the same property

For most standard residential lets, landlords should assume the new rules are relevant unless there is a clear reason they are not.

Rent in advance: what has changed?

This is one of the biggest practical changes.

For new tenancies entered into from 1 May 2026, landlords and agents cannot ask for, encourage, or accept rent in advance before the tenancy agreement has been signed.

That includes voluntary payments. Even if a tenant offers to pay early to strengthen their application, accepting that payment before the tenancy is agreed could create problems.

Once the tenancy agreement has been signed, landlords can usually request the initial rent payment. However, this is generally limited to:

• One month’s rent; or
• Up to 28 days’ rent where the rental period is shorter than a month

This means landlords need to be especially careful with wording in adverts, holding deposit communications, offer letters and tenancy agreements.

What about rent payments during the tenancy?

After the tenancy has started, rent should be paid for the rental period it relates to.

Because rental periods under the new system are generally limited to no more than one month, landlords cannot require tenants to pay several months’ rent in advance as part of the tenancy terms.

Any clause requiring more than the permitted level of advance rent may not be enforceable.

That does not mean a tenant can never choose to pay earlier or make an additional payment voluntarily. However, landlords and agents should be very careful not to request, pressure, encourage or build such payments into the agreement.

What about existing tenancies?

The timing matters.

If a tenancy agreement was entered into before 1 May 2026, different rules may apply, particularly where the agreement already includes a rent-in-advance arrangement.

This is why landlords should review each tenancy individually rather than applying a blanket assumption across the whole portfolio.

A good starting point is to ask:

• When was the tenancy agreement signed?
• What rent payment terms does it currently contain?
• Is the tenancy now operating as a rolling tenancy?
• Are any clauses out of date or potentially problematic?
• Do future renewals, variations or new agreements need updated wording?

Rental bidding wars: what landlords should avoid

The new rules are also designed to stop rental bidding wars.

In practice, this means landlords and agents need to advertise a clear rent and avoid encouraging tenants to compete by offering more than the advertised amount.

For landlords, the safest approach is simple:

• Set a realistic advertised rent from the start
• Avoid inviting “best offers”
• Keep marketing wording clear and neutral
• Assess applicants on suitability, not who offers the most
• Keep a clear record of how the tenant was selected

This protects you commercially and reduces the risk of a challenge later.

Rent increases: a more structured approach

Rent increases now need to be handled more formally and with proper timing.

Landlords should move away from informal discussions and instead use a clear rent review process supported by market evidence.

A strong rent review process should include:

• Comparable local rental evidence
• A written explanation of the proposed rent
• Correct notice
• Clear dates
• A record of tenant communication

The best approach is not always to push the rent as high as possible. A reliable tenant paying slightly below the top of the market may still be more profitable than a higher rent followed by a void period, dispute or re-letting cost.

Why this matters for landlord cash flow

Some landlords have historically relied on advance rent to reduce risk, particularly where applicants had limited referencing strength, overseas income, or unusual employment arrangements.

Under the new rules, that approach needs rethinking.

Instead, landlords should focus on:

• Stronger referencing
• More detailed affordability checks
• Guarantors where appropriate
• Rent protection and legal expenses cover
• Better tenant selection
• Clear arrears procedures

This is where process becomes vital. If you cannot rely on large upfront payments, you need to rely on better systems.

Practical checklist for landlords

If you own or manage a rental property, now is the time to tighten your rent process.

Review the following:

• Are your tenancy agreement rent clauses up to date?
• Do your adverts clearly state one fixed rent?
• Are staff or agents avoiding language that encourages higher offers?
• Are you taking rent only at the correct stage?
• Are you using proper rent increase notices?
• Do you have market evidence for rent reviews?
• Is your referencing process strong enough?
• Are you considering rent protection cover?
• Do you have a clear arrears escalation process?

Small changes now can prevent much bigger problems later.

Final thoughts

The Renters’ Rights Act does not stop landlords from running profitable rental properties. It does, however, make it much more important to handle rent correctly.

The landlords who adapt fastest will be the ones with clean paperwork, clear processes and good advice around them.

Rent collection is no longer just an admin task. It is part of your compliance framework.

Need help reviewing your rent process?

If you want to make sure your tenancy agreements, rent payment process and tenant selection procedures are fit for the new rules, Ashmore Residential can help.

We can review your current setup, identify any risk areas, and help you put a clean, practical process in place.

Call Ashmore Residential on 020 8366 9777 or email info@ashmoreresidential.com to speak with us.

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