Student Accommodation Deposits

Holding Deposits

The first deposit that you may be asked to pay for your student house or flatshare is a holding deposit. This is used if you do not plan to move in immediately and is a security for the landlord should you decide to pull out. You should ask the landlord whether the holding deposit can be used towards the first months rent as this is quite common.

Security Deposit

Many student accommodation landlords will ask their tenants for a security deposit which is fully refundable unless the landlord needs to compensate for:

• Unpaid rent
• Repairing any damage caused during your tenancy (excluding normal wear and tear)
• Cleaning the house or flat after you have moved out

Typically this is a figure of one to three months rent, but only pay it once the contract has been signed and by cheque or credit card so that you can refer to the payment in the event of an issue when you move out.

When you move out at the end of the year, you must receive the whole deposit back within the governments allotted timeframe after moving out or an itemised bill justifying the reason and cost of deductions.

The majority of student house and flatshares are let as an assured shorthold tenancy (which means that you are renting from a private landlord and the property is your main home), the implications of this on the deposit is that it must be paid into a tenancy deposit scheme by your landlord.

The Tenancy Deposit Scheme (TDS) was introduced to allow tenants to their deposit back when they are entitled to it, as this will encourage you look after the property that you live in and makes it easier to resolve any disputes that you may have when moving out.

There are two types of tenancy deposit scheme for the landlord to choose from, the insurance based scheme and the custodial scheme, both of which provide a free dispute resolution service and you must be told within 14 days of moving in which option the landlord has gone with.

If you feel that the landlord is unfairly taking your deposit when move out, you can contact the Tenancy Deposit Scheme for more information.

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