A survey of tenants by The Deposit Protection Service (The DPS) has shown that 60% of respondents who had moved within the past year said they had paid between two and three months’ rent upfront to secure their property.

The survey of 2,210 tenants also revealed that 8% had paid as much as four to six months’ rent upfront and a further 5% said they had paid between nine and twelve months’ in advance.

Rent in advance used to be requested by agent or landlords when prospective tenants had poor credit histories, but the practice has now become a way for tenants to get to the top of the tenancy pile when house hunting.

Rent upfront

Matt Trevett, Managing Director at The DPS says: “Our latest research shows how significant proportions of prospective tenants are providing rent upfront to landlords or letting agents.”

Kate Watts, of Robert Watts Estate Agents, in Bradford, who lets homes on behalf of 950 landlords in the area adds: ”We don’t ask for rents upfront outside of deposits, but I can see how asking for additional rents would be a way for agents to differentiate between prospective tenants.

Sheer demand

“The sheer demand for rental properties since the pandemic means that we see an average of twenty to thirty initial renters chasing one property.

“Desperate renters will pay upfront rent, but tenants who do this should be aware they could struggle to afford rents later in the tenancy if they have no savings to cover unexpected bills or general cost-of-living increases.”