Rent with no income but large savings?
Hi, I understand the Renters’ Rights Act 2025 outlaws rent in advance?
I know of a tenant who is cash-rich – lots of investments and savings – and who has given up paid work. He wishes to change rental properties and is concerned that the above change could mean he wouldn’t now be acceptable to a new Landlord, at least not without a guarantor. Ie, they will expect evidence of ‘income’, and cannot now accept a multi-month payment in advance (which he’d otherwise be happy to do).
Is this the case? What would LL’s on here do to surmount this?
To be clear, this fellow could buy a property outright with just his savings, and could draw on a number of investments to cover his rental outlay, but chooses not to buy as he expects there will be a fair chance he’ll move abroad within 5 years, and would much prefer to rent until then.
Thank you
Tom
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Member Since December 2021 - Comments: 161
8:29 PM, 19th December 2025, About 4 months ago
Reply to the comment left by David Rose at 19/12/2025 – 11:49
Hmm, easier said than done, my MP (labour) has blocked me on everything, and I’m pretty sure would just toss a letter in the shredder!
Member Since July 2013 - Comments: 561
10:21 PM, 19th December 2025, About 4 months ago
How many landords would be able to rent a property themself these days?
Member Since January 2015 - Comments: 1431 - Articles: 1
9:30 AM, 20th December 2025, About 4 months ago
Reply to the comment left by Tim Peters at 20:19
Letter/document/Deed from the tenant(s) to the landlord requesting the landlord considers and accepts the tenant’s request to pay x months in advance. Could also cite reasons ie in line with student maintenance loan/grant; job contract, children’s school/educational need/location etc etc
Member Since February 2025 - Comments: 68
10:04 AM, 20th December 2025, About 4 months ago
See the discussion at https://www.property118.com/government-defends-ban-on-rent-in-advance-in-renters-rights-act/#comments
Member Since May 2014 - Comments: 195
10:13 AM, 20th December 2025, About 4 months ago
Reply to the comment left by Tim Peters at 18/12/2025 – 20:19
I agree with Judith. It would be simple enough to get the tenant to make the offer in writing.
Job done, is it not?
Member Since December 2025 - Comments: 31
12:24 PM, 20th December 2025, About 4 months ago
In reply to the original post, no I would not accept this person as a tenant. In the last few years I have only accepted tenants who have a very strong motive to be good tenants. The strongest motive of all is that they are saving a deposit to buy a house and will need an unblemished record to get a mortgage. Your friend has no real motive to be a good tenant. What is the worst that could happen to him if he does not pay the rent or even if he damages the property? In practice the worst is loss of his deposit, that’s all. If his record is tarnished he can buy a house or flat for cash.
Member Since September 2022 - Comments: 7
9:58 AM, 21st December 2025, About 4 months ago
Reply to the comment left by robert fisher at 18/12/2025 – 12:30
I understand these concerns, I too, have a tenant from working to unemployed.
Then tbe problem started, UC gave an income which supported Housing allowance and top up.
It is simple enough to say Direct payment from UC, but the tenant is reluctant to give up this independance.
No matter how I explain that its in their best interest to have a direct payment from UC as this stops the chance of rob Peter to pay Paul syndrome, then late payments and my admin charges increase, which UC do not pay.
The renters right bill will cause more problems on regular payments where basically increases the bad tenant from who used to be a good tenant.
Member Since December 2023 - Comments: 31
12:15 PM, 22nd December 2025, About 4 months ago
I think @steve is correct that you cannot receive any payments in advance of signing the tenancy agreement other than the holding deposit (of the appropriate max amount, which I can’t remember offhand). But after that point a tenant can choose to pay as early as they want. So if they choose to pay a year up front that’s fine. But you certainly can’t ask for it.
A retired guy with a couple hundred k in the bank doesn’t sound like a bad tenant to me, but as others have said, he probably won’t pass landlord insurance referencing.
Member Since October 2023 - Comments: 62
12:41 PM, 22nd December 2025, About 4 months ago
Reply to the comment left by Phil rosenberg at 22/12/2025 – 12:15
Whilst i agree the tenant can pay what they like in advance (in theory), my concern is that if you fall out later, they might say you told them to pay it…. Tribunals tend to believe the tenant and you could get a massive penalty just because you tried to help someone out. Sorry but i wont risk it
Member Since January 2020 - Comments: 559
1:03 PM, 22nd December 2025, About 4 months ago
Reply to the comment left by Neilt at 20/12/2025 – 10:13
The answer has to be no.
It’s a clear sham and in the event of the landlord and tenant falling out the landlord will be in trouble.