When should I pay my deposit and first month's rent?

After you’ve decided on where you are going to live and signed the tenancy, you will be asked to pay a deposit to secure the property. If you don’t make the payments on time, you risk losing the property.

The process is normally slightly different depending on whether you are going to live in a house or a hall.

House

You will likely be asked to pay for your first month of rent before the move-in day. The good news is most landlords and letting agencies will send you information directly about how much is owed and when it’s due, so there’s no need to dig through stacks of paperwork to find the information.

Hall

If you have chosen a hall of residence it is likely that you will be asked to pay a small holding deposit prior to signing the tenancy agreement. Once this process is completed this holding deposit is normally transferred to become a damages deposit. This will not be the case in Scotland where they have slightly different rules.

What is a deposit and first month's rent?

A deposit is the money paid to the landlord, letting agent or hall company. It is intended to provide a safety net in case there are any damages or unpaid rent at the end of the tenancy. Most students will need to pay one month's rent, but it can be up to 5 weeks in England or even two months in Scotland!

You will also normally be required to pay the first month before you move into the property. It is worth being aware that in a hall of residence the first rental payment may be more than 1 month.

You will normally be asked to pay your deposit and first month's rent before you move in. This is standard practice in the UK, and landlords and letting agents will often require this as proof of your commitment to renting the property. Most landlords and letting agents will require payment of the deposit and first month's rent at the same time, usually after you sign the tenancy agreement. In a hall of residence you may get more time to pay your first instalment once you have signed the tenancy agreement.

When you pay your deposit and rent via bank transfer keep in mind that the payment may take a couple of days to clear. To save any potential hassle, it might be worth transferring the funds a couple of days in advance to avoid any delays or issues.

Staying Safe

It is important to be confident about who you are paying the money to. Where possible you should have viewed the property in-person and met the landlord or agent before you transfer funds. Accommodation for Students verifies each property before it is advertised, however, you can always double check with one of our team if you are not sure.

What is the difference between a holding deposit and a damage deposit?

A damage deposit is held by the landlord or property management until the end of the tenancy period. A holding deposit is a smaller sum of money which you may have to pay when you want to rent somewhere.

When you pay a holding deposit the property you are interested in should be taken off the market until you complete the tenancy paperwork. You will normally be given a set amount of time to do this and if you don’t get this done in time you could lose your holding deposit.

A few points to note. The maximum holding deposit anyone can charge in England is 1 week's rent, however, it is not legal to charge a holding deposit in Scotland. If you are renting a room in a hall of residence in England and Wales you will normally be asked to pay a small holding deposit, which then converts to either towards your rent or damage deposit.

What if I can't afford to pay the deposit and rent?

If you're struggling to pay your deposit and first month's rent, you may want to consider alternative accommodation options or discuss payment plans with your landlord, agent or hall.

Whether you're renting a property as a student or as a professional, most properties will require a security deposit and the first rent payment prior to moving in. It can be helpful to understand the processes and reasons for the deposit so you can go into renting as a more knowledgeable tenant.