What is rent in advance?

In most tenancies, when you sign your agreement you will be required to pay bond and rent in advance.

Under the standard tenancy terms the maximum of rent in advance that can be required is one month.  The maximum bond is the equivalent of 4 weeks rent (for more information about bond see our Bond factsheet

This can work in two ways:

  • your tenancy begins on 2 March and you pay 4 weeks rent on that day. Your agreement says rent is to be paid fortnightly.

Having paid 2 fortnights in advance, you might not expect to pay rent again until 30 March; however your agreement may say that the next payment is due on 16 March to keep your rent account always a clear fortnight in advance. This is possible as long as you are not required to pay more than 2 weeks rent each payment (ie you are never more than 1 month in advance)

  • Your tenancy begins on 2 March and you pay a month’s rent on that day (if you have made your payment prior to this rent applies from when the tenancy starts).  Your agreement says rent is to be paid monthly.

Having paid a month in advance you cannot be asked to pay another month’s rent until 2 April because to do otherwise would be putting you more than 1 month in advance.

It is important to take rent in advance into account when you give notice to end your tenancy or you may find you have paid too much and you will then have to organise repayment.

For information on how rent payments are calculated see our FAQ    

For information about rent arrears see our Factsheet

Call the Tenants’ Advice Service if you need advice

Reviewed:  4/8/2015

IMPORTANT NOTE:

Tenants’ Union ACT publishes this website as a free service to the public.

This website provides information about the law designed to help users understand their legal rights and obligations. However legal information is not the same as legal advice (the application of law to an individual's specific circumstances). Although we make all efforts to ensure our information is accurate and useful, we recommend you consult the Tenants Advice Service for advice specific to your circumstances. You are also free to consult an independent solicitor for a second opinion.

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