Rent lawfully due from the tenant

Rent is regular contractual amount paid by an occupier to their landlord for use and occupation of accommodation.[1]

The obligation to pay rent is one of the three requirements for a tenancy to be created.[2] An occupation agreement that does not have an obligation to pay rent could be a licence.

Read more about licenses at Shelter Legal.

Rent in advance or rent in arrears

Rent is payable in arrears, unless specified otherwise in the tenancy agreement.

Where a tenancy agreement states that the tenant should pay rent in advance. The tenant's payment dates mirror the period of the tenancy. For example, if a tenancy is weekly, rent is paid weekly. If a tenancy is monthly, rent is paid monthly.

When rent becomes due

Rent becomes due on the day specified for payment in the tenancy agreement. The rent is overdue on the following day if it is not paid in full.[3] Rent can be due on a Sunday, but where the rent due day falls on a bank holiday, it is not payable until the following day.[4]

Landlord refuses to accept rent

Rent is lawfully due even if the landlord refuses to accept payment. Once the rent falls due and is unpaid, the landlord has six years in which to recover it.[5] This is called the limitation period. Each rental payment has its own limitation period.

Landlord duty to provide an address

The landlord must provide the tenant with an address at which the tenant can serve notices on the landlord. If the landlord fails to do this the rent is treated as not due.[6] Once the landlord provides the tenant with an address, with the rent is payable from the start of the tenancy.

Find out more about a tenant's right to information about their landlord's identity.

Rent can include other charges. If a tenancy agreement defines the rent including items like service charges, then the total payment is classed as rent lawfully due.

A landlord can issue possession proceedings for rent that is lawfully due. Some tenancies include a separate obligation to pay charges such as water. These charges are not classed as rent lawfully due and cannot be included in a total sum of rent arrears.[7]

Service charges

Rent can include service charges if this is specified in the tenancy agreement. A tenant can challenge the reasonableness of a service charge if it is included in the rent.

Read more about challenging service charges for leasehold properties on Shelter Legal.

Water charges

A tenancy agreement can state that a tenant must pay water charges to a landlord as part of the rent.

Local authorities and social landlords can make agreements with water companies to collect water and sewage charges from tenants who do not have water meters.

Under the water resale rules landlords who resell water can only charge tenants up to a set limit.[8] Tenants who have been charged more than the maximum allowable amount are entitled to claim a refund.[9]

Landlords who act as an agent for the water company under a different kind of agreement might not break water resale rules.[10]

Council tax charges

Council tax is payable to the local authority.[11]

Council tax has a hierarchy of liability that is determined by legislation. Terms in a tenancy agreement do not override it. For example, a term stating the landlord will pay council tax does not affect the tenant's liability to the local authority.

Read more about council tax on Shelter Legal.

Utility charges

A tenancy agreement can state that rent is inclusive of utilities such as electric and gas. It is common in houses of multiple occupation and student properties.

The terms of the agreement must specify the exact terms of payment. A fair usage policy could be written into the agreement that states the amount of energy the tenant can use under the agreement.

Unpaid charges from exceeding a fair usage policy are not classed as rent lawfully due and do not count towards rent arrears. A landlord must issue a money claim in the County Court to recover the excess sum.

Read more about money judgments on Shelter Legal

A liability arises when a person is legally responsible for something. Only the tenants named on a tenancy agreement are liable to pay the rent.

Sole tenancy

The tenant is liable for the full amount of rent stated in the tenancy agreement.

Joint tenancy

All named tenants are liable for the rent both jointly and independently of the other, regardless of who is occupying the property. This is known as 'joint and several liability'.

This means that either or both tenants can be hold responsible for the whole rent. It is not possible to argue that one tenant is only liable for a particular share of the rent. If a joint tenant fails to pay their share of the rent, then the other will have to pay to prevent the landlord taking possession proceedings.

Read more about joint liability on Shelter Legal

A tenancy agreement usually states how the tenant should pay the rent. For example, rent can be paid by bank transfer, cash or cheque.

Rent paid by the tenant's spouse or civil partner is treated as paid by the tenant.[12]

Payment by someone else on behalf of the tenant must be authorised or subsequently approved by them.

Bank payments

Many tenants pay rent by setting up a standing order with their bank. A tenant can arrange to make a payment to the landlord's bank account on a specific day.

Payment by a bank standing order is equivalent to cash payment. The tenant is considered to have made the payment as soon as it leaves their account.

Find out more about opening and managing a bank account.

Cash payments

A tenant paying rent in cash could make the payment in person or by post. A tenant paying rent by cash could ask their landlord for a payment receipt.

Cheque payments

A cheque is a conditional payment. If the landlord accepts the cheque and the cheque clears, the tenant is considered to have made the payment on the day it was given.[13]

If a cheque does not clear or is lost in the post, the rent amount is still due.

Rent books

A landlord must provide a rent book or equivalent where a tenant pays weekly, unless the payment includes a substantial amount for meals.[14]

A rent book must include a form containing:[15]

• address of premises

• name and address of the landlord

• name and address of any agent

• the rent payable

• details of any accommodation that the occupier has the right to share with other person

Failure to provide a rent book does not effect the liability of the tenant to pay rent.[16]

A local authority tenancy relations officer could take action against a landlord who does not provide a rent book.[17]

Read more about renting rights for private tenants at Shelter Legal.

Rent reductions

A landlord can reduce rent in exchange for services from the tenant.

A rent reduction must be formalised in a written agreement and specify the value of the services and the agreed reduction.

A rent reduction in exchange for services could be a benefit in kind. Benefits in kind are taxable and must be reported to HMRC.

Where a tenant fails to pay rent lawfully due and rent arrears accrue a landlord could:

• start possession proceedings

• apply for a money judgment to recover the rent owed

Read more about rent arrears possession at Shelter Legal.

A tenancy guarantee covers the terms agreed to by a landlord and tenant in the initial tenancy agreement. For example, the guarantor could agree to be responsible for a tenant's rent or other financial obligations if the tenant fails to pay.

The guarantor agreement must contain the terms of the guarantee, including what the guarantor can be asked to pay. A guarantor agreement does not interfere with a tenant's liability for rent payments.

Read more about guarantor agreements on Shelter Legal.

Whether or not someone pays rent for a property affects their rights and how secure their housing is. Courts have decided that it is possible for a contractual tenancy to exist even if no rent is paid.[18]

Where an occupier pays a high or low rent the occupier might not have the legal protections offered by the Rent Act 1977 or Housing Act 1988.

Find out more about occupiers with basic protection at Shelter Legal.

Peppercorn rent

Peppercorn rent is a term used in legal contexts to denote a rent that is nominal or trivial in amount. For example, a rent of £1 per year.

Peppercorn rent can provide evidence that the landlord and tenant intended to form a legally binding contract. It is most commonly used in leasehold agreements.[19]