Deposit / Security Deposit

When you wish to rent a property, you will usually be required to pay a deposit. This is a refundable charge, often equal to one or two months rent, which you must pay to the landlord, letting agency or University. This deposit secures the property for you: once you have paid the deposit you are entitled to rent the property for the period agreed in the rental contract. At the end of the rental period this deposit will be refunded, providing that you have not damaged the property. Damages will generally be paid for out of your deposit: for this reason the deposit is also known as the security deposit.

When you agree to pay the deposit you ought to arrange a viewing of the property with the landlord or letting agent. It is important that you both agree on the condition of the property before you move in; there may be repairs that need doing or damage done to the property by previous tenants. Make sure that the person renting the flat to you makes a list of the furniture in the property and the state that the property and fittings are in. It is important that this list is very detailed. This will avoid you being charged money for damages, such as a crack in the shower tray or marks on the wall, which were there when you moved in.

Check in your rental contract that your landlord and/or letting agent allows for 'reasonable wear and tear' during the rental period. This ensures that you will not lose your deposit if there is some damage to the property arising from day-to-day life, such as discolouration of the grouting in a tiled bathroom or small marks on the carpet. If you have damaged the property during the rental period you may lose your entire deposit or that part of your deposit used to cover the cost of repairs.

The amount that you are required to pay as a deposit will range between two weeks' rent and three months' rent. You should never be asked to pay more than three months' rent as a security deposit. If you are a student and rent a property through your University, you may not have to pay a deposit. If you do need to pay the deposit will often be a set price, such as three hundred pounds, and will not be based on the rent you pay. Some landlords and letting agencies will require a cash deposit, others will accept a cheque.