Maximum rent in advance
'Rent in advance' is simply the first rent payment and/or the frequency of rent payments (how often it's due).
The tenant cannot be asked to make another rent payment until the ‘rent in advance’ has been used up.
For example, if the payment frequency (rent in advance) is monthly, the first rent payment is due upon signing the lease. However the second rent payment would not be until one calendar month after the lease start date (date the tenants moved in). So if the tenant moved in on the 2nd October, the second monthly rent payment would be due 2nd November. It's important to note it does not mean the tenant has to be a month in ahead every day of the month.
Each state has different amounts that can be charged in advance. An owner is allowed to accept a larger amount in advance (eg 6 months) if the tenant voluntarily elects or offers to pay more (periods of) rent in advance.
In Cubbi, when creating a new tenancy the default frequency of payments is based on the information below.
Victoria
Maximum rent in advance: 1 month
If the rent is more than $350 a week, the owner can charge rent in advance for the full term of the lease (unless the lease term is more than five years).
However if the rent is to be paid weekly, the owner cannot ask for more than 14 days’ rent at the beginning of a tenancy.
In any other case, provided the rent is $350 a week or less, the owner cannot ask for more than one month’s rent in advance.
Residential Tenancy Act - Rent in advance
New South Wales
Maximum rent in advance: 2 weeks
Residential Tenancy Act - Payment of rent by tenant
Queensland
Maximum rent in advance: 1 month
If the lease is a periodic agreement the maximum rent in advance is 2 weeks rent.
Residential Tenancy Act - Rent in advance
Western Australia
Maximum rent in advance: 2 weeks
Tenants guide (See page 8 - Paying rent)
Residential Tenancy Act - Rent in advance
ACT
Maximum rent in advance: 1 month
Tenants union (Cubbi uses the second approach)
South Australia
Maximum rent in advance: 2 weeks
Residential Tenancy Act - Rent in advance
Northern Territory
Maximum rent in advance: 1 month
The legislation does not specify exactly the maximum amount of rent that can be charged in advance, rather it just refers to one periods rent. So as long as the lease states rent is paid monthly (payment frequency) you can charge 1 month in advance.
Residential Tenancy Act - Rent in advance
Tasmania
Maximum rent in advance: 4 weeks