When you rent privately, you will be expected to pay a tenancy deposit by your landlord to cover damage to the property or unpaid rent.
It’s recognised that finding such a large amount of money to cover a deposit can be financially difficult for some tenants and as a result, there are also products available that provide alternative deposit options with a significantly lower up front cost.
What are my options?
A New Alternative
If you’re keen to keep your costs down, then a great alternative to a traditional deposit is the scheme offered by Reposit.
Reposit is one of our key partners and offers a market leading tenancy deposit alternative. As a tenant, you will pay a 1 week non-refundable service charge, which provides your landlord with 8 weeks’ worth of end-of-tenancy protection. When you pay your service charge, which is equal to just 1 week’s rent, Reposit adds your landlord as a named beneficiary to their insurance policy.
You would therefore save 4 weeks’ of rent up front, freeing up money to spend on other areas of your move. Contact your Letting Agent to see if they offer Reposit.
The Traditional Approach
If you choose to follow the traditional deposit route, you will pay an amount less than or equal to:
- 5 weeks’ rent if your rent is less than £50,000 a year
- 6 weeks’ rent if your rent is more than £50,000 a year
Your landlord should confirm what the deposit covers and then place it in an authorised tenancy deposit protection scheme (TDP). There are specific schemes your deposit can be placed with and these will offer you a form of protection if you are struggling to get your deposit back from a landlord (subject to you having fulfilled all the terms of your tenancy agreement.)
Your landlord or letting agent must put your deposit in the scheme within 30 days of receiving the money from you. To find out more information on Tenancy Deposits, read our Guide to Tenant Referencing and Tenancy Deposits.