You’ve almost done it! You’ve decided who you’re living with, found your dream flat and signed your tenancy agreement. The final thing you need to do? Pay your deposit and first month’s rent. Whilst this may be the less fun side of finding accommodation, it is still essential to ensure you secure your future flat. This blog outlines when you should pay your deposit and first month’s rent for each type of accommodation, setting you on the right path for an enjoyable stay in your new flat.
What is a deposit and first month's rent?
A deposit is an upfront payment to a landlord or letting agent which acts as a form of security in case there is any damage or unpaid rent during, or at the end of your tenancy. Where neither of these things occur, most accommodation providers will give you your deposit back at the end of your stay or deduct it from your rent. The majority of the time, you will be required to pay around one month or five weeks’ rent. However, since many landlords and agents may also want you to pay your first month’s rent before you move in, this can be quite a hefty expense that you should prepare for!
University halls of residence:
Many universities no longer require students to pay a strict ‘deposit’, but usually still ask them to make an ‘advanced rental payment’. Apart from the title, this acts in the same way as a deposit, and should be deducted from the total sum of your rent. Each university will have a different policy for deposits and payments, so it is definitely worth having a look at your contract or the terms and conditions on their website.
Different institutions will also have different payment plans and deadlines for your first month’s rent. Some may allow you to pay in full at the start of the year, or give you a chance to set up a payment plan, where your rent is divided into 4, 10 or 12 equal instalments. You should also check whether your university wants you to pay your rent in advance or in arrears. If you are on a payment plan, your rent will usually be taken on the same day each month so this is definitely worth noting down! You might be charged for late payments, so always ensure you have enough money in your account.
Private halls or studios:
If you choose to live in a private hall or studio, the terms of your contract will differ depending on your accommodation provider. Some hosts, such as IQ, do not require you to pay a deposit at all, but may charge you a booking or administrative fee. As a result, it is essential you read your contract thoroughly to avoid any unwanted charges!
Many private halls will also allow you to pay your rent in full or set up a payment plan. Similarly to university halls, your rent will be due on the same date each month. However, some may require you to manually ‘pay’ rent each month (through an online platform), rather than taking it automatically out of your bank. If this is the case, it may be worth setting up a reminder on your calendar to ensure you never miss a payment.
Many providers also often offer cashback if you rebook the same room for another year (for example, a chance to get £200 deducted from your rent) which can be great!
Student houses:
The majority of private landlords and letting agents will require you to pay a deposit before you move in. Your security deposit will usually be around 5 weeks’ rent, and is used to pay for any damage or unpaid rent during your tenancy. In addition, you may also be required to pay a small ‘holding deposit’ to reserve your flat whilst your references and credit scores are checked (although this will usually be deducted from your rent payments later on). Interestingly, holding deposits are not legal in Scotland and you should never be asked to pay them. However, Scottish landlords can ask for 2 months’ rent as a deposit (as opposed to the 5-week limit in England and Wales).
Your landlord should tell you directly how much your deposit is going to be (and this is a great question to ask during a viewing). If you’re in any doubt or want to double check, you should refer to your tenancy agreement. Whilst you’re there, you should also check whether they want you to pay your rent instalments in advance or arrears, and how they want you to pay. Bear in mind that bank transfers may take a few days to clear, so it is worth making sure you do them well in advance to avoid any issues.
Most landlords and agents will require you to pay your rent in monthly instalments. When you’re sharing a flat with friends, it is typical for one person to pay the full rent to the landlord directly, and the others to reimburse them for their share.
Staying safe!
Since your deposit and first month’s rent are both large amounts of money, it is essential for you to know who you are transferring them to. Ideally, you should have viewed your future flat in-person and met your landlord or letting agent before handing over any money. Where this is not possible, you can use websites such as Accommodation for Students, which verify all the properties they advertise.
What if I can’t afford to pay my deposit and rent?
If you’re finding it difficult to pay your deposit and first month’s rent, you may want to reach out to your university support services who can offer you cost-of-living support, emergency loans and budgeting advice. You could also consider living in a different, cheaper type of accommodation (such as a shared flat rather than a studio), or discuss your situation with your landlord or letting agent and try to arrive at a solution.
Although it may seem annoying at the time, paying your deposit and first month’s rent is key to securing your new flat. As a result, it’s really important that you check your tenancy agreement and ask your landlord or letting agent any questions you have to ensure you get it right. Paying your deposit and first month’s rent on time will give you one less thing to worry about, and set you up for a successful tenancy in your new flat!
