{This is an approach used by some agents for tenants who are considered risky to ensure the rent is paid}

Yes – agents can take rent in advance for the entire fixed term and still insist the tenant pays rent each month. However there are some pitfalls to adopting this approach that could prove costly for the landlord:

  • It is a deposit – from the Housing Act 2004, a deposit means money intended to be held (by the landlord or otherwise) as security for—

(a) the performance of any obligations of the tenant, or

(b) the discharge of any liability of his,

arising under or in connection with the tenancy.

[Housing Act 2004 Section 213 (8)]

In this scenario a landlord or his agent can refer to the money as ‘rent in advance’ or anything they want to call it but it is a deposit and as such should be handled in accordance with the laws governing tenancy deposits and deposit scheme rules as the penalties for not doing so are high.

  • It could be a premium let – from the Housing Act 1988, where a deposit is taken which is greater than 1/6th of the annual rent (greater than 2 months worth of rent) this is a ‘premium’ and if the tenancy becomes a periodic tenancy which is not a statutory periodic tenancy, the tenant can assign (in whole or in part) or sub-let or part with possession of the whole or any part of the dwelling-house without the consent of the landlord.

[Housing Act 1988 Section 15]

Further Reading

The pitfalls of taking more than 2 months deposit (Jungle Property blog)

Housing Act 2004 Section 213

Housing Act 1988 Section 15

Still not answered your question? We love questions so fire it at us using the contact details here

Please rate this article so we know how well it answered your question…

Can an agent take 6 months rent in advance and still insist rent is paid monthly?
Rate this article

Leave a Reply