Four in ten letting agents unaware of rent advance restrictions
Original Article Summary
More than 40% of letting agents remain unclear about new restrictions on rent in advance payments as the Renters' Rights Act comes into force on 1 May. A survey of 887 letting agents found significant knowledge gaps about the new rules. The post Four in ten letting agents unaware of rent advance restrictions appeared first on PropertyWire.
PropMatch Curated Analysis
Research reveals that over 40% of letting agents are unaware of incoming Renters' Rights Act restrictions banning required rent-in-advance payments from 1 May 2025, with significant implications for how landlords screen and manage higher-risk tenants. Agents and landlords will need to replace rent-in-advance as a risk tool with enhanced affordability checks and guarantor arrangements.
Investor Relevance
Buy-to-let landlords and HMO operators who currently rely on rent-in-advance to manage tenant risk — particularly for international tenants, those with poor credit, or those without guarantors — must update their screening and onboarding processes before 1 May 2025 or risk holding unenforceable clauses. Failure to adapt could expose landlords to increased arrears risk with no contractual remedy.
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