It’s one of the most common questions tenants ask, particularly as they approach the end of a tenancy:
“I paid two weeks’ rent in advance when I moved in. Doesn’t that mean my last two weeks are already paid?”
It’s an understandable question, but paying rent in advance doesn’t mean there are two weeks of rent sitting untouched and waiting to cover the end of your tenancy.
Here’s how it actually works.
What does “two weeks in advance” mean?
When you begin a tenancy, you may be asked to pay rent in advance. In the ACT, a landlord or real estate agent cannot require a tenant to pay more than two weeks’ rent in advance, although a tenant can choose to pay more.
That initial payment covers the upcoming rental period.
Think of it as paying for the next two weeks, rather than putting two weeks of rent aside for later.
Once those two weeks have passed, your next rental payment becomes due and covers the next rental period. This continues throughout the tenancy.
A simple example
Say your tenancy starts on 1 January, and you pay two weeks’ rent in advance.
Your payments would work like this:
- 1 January: Your first payment covers 1 January to 14 January.
- 15 January: Your next payment covers 15 January to 28 January.
- 29 January: Your next payment covers the following rental period.
- The same cycle continues for the duration of your tenancy.
Each payment moves your rent forward by another rental period.
So while you remain “in advance” when your payments are made on time, there isn’t necessarily an unused two-week payment sitting on your account.
What happens when you’re moving out?
This is where the confusion often comes in.
If you have consistently paid your rent according to your agreed payment schedule, you generally still need to make payments as they fall due until your rent has covered your tenancy through to the agreed end date.
Simply stopping payments two weeks before moving out because you remember paying two weeks at the beginning of the tenancy could leave your rental account in arrears.
Your residential tenancy agreement sets out how much rent you need to pay and how often it must be paid, and tenants have an obligation to pay their rent in full and on time.
Rent in advance and your bond are different
It’s also important not to confuse rent paid in advance with your rental bond.
Your bond is separate from your regular rent payments. It is held for the tenancy and dealt with through the ACT bond process at the end of the tenancy.
Rent, on the other hand, is an ongoing payment for your occupation of the property.
Not sure where your rent is paid to?
If you’re approaching the end of your tenancy and aren’t sure what date your rent is currently paid to, don’t guess.
Check your rental records or contact your Hayman Partners Property Manager. We can help clarify the dates your payments cover and what, if anything, remains payable before the tenancy ends.
Understanding your rental payment cycle can make the end-of-tenancy process much simpler and help avoid an unexpected arrears balance.
At Hayman Partners, our aim is to bring clarity to property management and make renting as straightforward as possible for everyone involved.
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