Advice & Guidance
You may be asked to pay your landlord or agent a security deposit in case you damage the landlord's property or furnishings, or to cover, for example, cleaning, unpaid bills and unpaid rent. The deposit paid when you sign a tenancy agreement is usually paid as a holding deposit (which turns into a damage deposit when you move in). If you decide not to move in, you may lose the holding deposit in some cases.
The amount of the deposit varies from tenant to tenant. Commonly, students are asked for a sum equivalent to a month's rent. The maximum which can be requested is 5 weeks' rent (6 weeks if the annual rent is £50,000 or more).
For all assured periodic tenancies (APTs), if you pay a deposit, your landlord or agent must protect it using one of three Tenancy Deposit Schemes.
The aim of the schemes is to protect private tenants' deposits from being wrongfully withheld by landlords or agents, and help resolve any disputes about the return of deposits.
Make sure you get a receipt for any deposit you pay. Within 30 days of receipt of the deposit, your landlord or agent must give you certain "prescribed" information.
If your landlord or agent hasn't protected your deposit, the county court can order them to either repay the deposit to you or protect it. They can also be ordered to pay you between one and three times the amount of the deposit for failing to protect it.
When you move into a property, you should draw up an inventory, or check the existing inventory if there is one. This means you should list all the furniture and fittings in the property and their condition. Make a note on the inventory of any problems you find and also note the general condition of the property (photographs are helpful). To safeguard your deposit take care of the house and furnishings during the time you are there. Towards the end of your tenancy arrange for the landlord to inspect the property, ensure the property is clean for the inspection, and when you leave, ensure all your bills are paid and return all keys to the landlord.
When your tenancy comes to an end the landlord should return your deposit to you in full if you have kept the property in good condition. The deposit must be returned within 10 days of you and the landlord agreeing how much of the deposit should be returned.
If you have caused damage to the landlord's property or furnishings, it is reasonable for them to make a deduction from the deposit to cover their losses. It is not reasonable for deductions to be made for everyday wear and tear.
If there is a dispute over the return of your deposit, you can challenge deposit deductions with the landlord or agent, and the three tenancy deposit schemes offer a free dispute resolution service. For the insurance-based schemes, you generally need to raise the dispute within three months of the tenancy ending. Check your scheme's own rules for the exact deadline. The NTSU Advice Service can provide further advice and assistance if you have a deposit dispute with your landlord.
For more advice and information about deposits and other housing payments, please contact the NTSU Advice Service.
