Housing and accommodation

Rents and deposits inclusive of TDS information

Once you have found a house you like, you will be expected to sign a contract and pay a deposit to the landlord (or agency). There are two different types of deposit, a holding deposit and a damage deposit.

 

Holding deposit

This is a sum of money paid to the landlord (or agency) to guarantee that the prospective tenant wishes to take up the tenancy. You should not pay a holding deposit unless you are certain that you will sign the contract and/or take up the tenancy. If you agree to pay a holding deposit and then decide not to sign the contract, the landlord (or agency) is entitled to keep the deposit.

 

Damage deposit

This form of deposit is usually paid to the landlord at the same time as you sign the contract. It is used to safeguard against any damage caused to the property beyond normal wear and tear and, if specified, against any unpaid rent and bills. The amount of deposit you can pay can vary greatly. It can be anything from £100 to £300. The landlord should not charge you more than two months' rent.

 

Tenancy Deposit Scheme

From 6 April 2007, all deposits taken by landlords and letting agents must be protected by a government authorised tenancy deposit protection scheme. The aim of the scheme is to ensure that when you are paying a deposit, if you are entitled to get all or part of it back at the end of the tenancy, then you are able to do so.

At the beginning of a new tenancy agreement, pay your deposit to your landlord (or agency) as usual. Within 30 days, the landlord (or agency) is required to give you details about how your deposit is protected including:

  • the contact details of the tenancy deposit scheme
  • the contact details of the landlord (or agency)
  • how to apply for the release of the deposit
  • information explaining the purpose of the deposit
  • what to do if there is a dispute about the deposit

If you don't get this information, ask your landlord (or agency) the question: 'how is my deposit protected?'

If you find that your landlord isn't protecting your deposit you can apply to your local court. The court can order the landlord (or agency) to either repay the deposit to you or to protect it in a scheme. If your landlord (or agency) has not protected your deposit, they will be ordered to repay three times the amount of deposit to you.

 

Rent payments

Before you sign a contract or move into a property make sure you know:

  • how much the rent is and how often it has to be paid (weekly, monthly, termly)
  • what the rent includes (gas, electricity, water rates)

It is quite common for landlords to request post dated cheques when you sign an agreement. It is worth remembering that if you do pay by post dated cheque that you are likely to incur a charge from your bank if you need to cancel a cheque for any reason. If possible request that you pay your landlord monthly, either by cheque or standing order. Payments in cash are strongly discouraged. If for any reason you have to pay your rent in cash, ensure that you get a receipt for the payment. However you pay your rent it is advisable that you have proof of payment. Evidence of payment can be vital in the event of a dispute.

 

Late payments

If you are consistently late paying your rent your landlord could issue proceedings against you for possession of the property. Just worth bearing in mind.

 

Can the landlord increase my rent during the tenancy?

The answer depends on the type of tenancy you have. If you have an Assured Shorthold Tenancy (AST) the landlord can only increase the rent if there is a specific clause in the agreement allowing them to do so. It is important that you check for such a clause when signing an agreement. If there is no clause in your agreement your landlord cannot increase the rent during the fixed term of your tenancy.

 

What if I can't pay my rent?

You are legally obliged to pay rent to your landlord as specified in your tenancy agreement. Failure to do so may result in the landlord issuing possession proceedings against you and ultimately finding yourself evicted.

In the event that this happens the court may issue a County Court Judgement against you (CCJ) for the debt (which you still have to pay).

If you are experiencing difficulties paying your rent, contact your landlord as soon as possible and explain your situation; they may be willing to come to a mutually convenient arrangement. Contact the Student Finance Centre on 023 9284 3014 for financial assistance.

Please note: If you are on a joint tenancy and one housemate is not paying their rent on time/not paying at all, for the landlord to evict this one tenant, the entire household must be served with notice. At the discretion of the landlord, the tenants who have no problem paying their rent may be allowed to stay under a new tenancy agreement.

 

What if the landlord won’t accept my rent?

Although you would probably be more than happy if this happens, you must make every possible attempt to pay your landlord. There may be a perfectly logical explanation as to why they won't accept the rent, for instance they have changed their bank account and failed to inform you.

Alternatively they may be purposely refusing payment to terminate the tenancy. Remember that if you are in arrears with your rent for eight weeks or more or you are persistently late paying your rent, the landlord can instigate possession proceedings against you for non-payment.

 

Can I withhold my last month's rent in case the landlord keeps my deposit?

As a tenant you have no right to withhold rent, however tempting it might be. The landlord could issue a claim against you for the outstanding money. If you don't pay the rent in the last month of your tenancy the landlord will usually claim the rent from your deposit. It is quite common for a landlord to ask for just under or just over one month's rent as a deposit to stop you from doing this. Check your tenancy agreement as many contracts contain clauses forbidding you from offsetting rent against deposit.

 

At the end of your tenancy

At the end of the tenancy, check whether you are leaving the property and its contents in the condition in which it was let to you, allowing for fair wear and tear, checking that you have paid your rent and any other expenses. You then need to agree with your landlord (or agency) how much deposit should be returned to you. You should then receive the agreed deposit amount within 10 days.

If you cannot agree on the amount that should be returned to you, and to avoid disputes and going to court, each scheme will be supported by an alternative dispute resolution service (ADR), whose aim is to make disputes faster and cheaper to resolve. The scheme will hold the disputed amount until the ADR or court decide what is fair and once agreed the amount will be returned within 10 days.