Christine Cork, 33, is now starting an 18-month prison sentence for fraud she ran for two years from the offices of letting agent New Horizons, in Canterbury, Kent.
Nearly 30 students handed deposits and holding fees of £325 – but she refused to return the money claiming the cash was non-refundable.
She should have placed the money with a tenancy deposit protection service for the students, but failed to do so.
Cork also collected thousands of pounds in rents for student landlords that she kept instead of handing over.
When challenged by one landlord, Canterbury Crown Court heard she told him: "It's gone, I haven't got the money. I've got a lot of personal debt. I'm going to have to declare myself insolvent."
Police were eventually called and she told them that her former live-in partner Martin Le Lacher and an employee had stolen the money in an effort to cover up her crimes.
Le Lacher was found guilty of handling stolen cash for Cork and was given a nine-month prison sentence suspended for two years and ordered to carry out 250 hours community work.
Judge James O'Mahony said: "You ripped off tenants even though you were trusted by landlords with a substantial amount of money and they were amazingly sympathetic and patient, unaware that you were defrauding them.
"You prioritised your needs over those of landlords and students. You also made allegations against a blameless employee who was arrested and interviewed and you also got your partner to launder some of the money."
The court was also told that police traced the cash to Cork’s private bank account, where payments were made to pay her rent and food bills. Some money was also paid into Le Lacher’s bank to pay off a car loan.
