Deposits

Types of Deposits

There are two types of deposits you may be required to pay when renting a property.

Holding Deposits

 

🟧 This may also be referred to as a holding fee.

🟧 Holding deposits can be a maximum of 1 weeks' rent in accordance with the Tenant Fees Act 2019.

🟧 The holding fee will reserve the property for 14 days.

🟧 If you decide not to rent the property without a good reason, you might lose your holding deposit.

🟧 If the landlord decides not to rent to you, the deposit must be returned to you within 7 days, as long as you provided accurate information when you paid it.

🟧 For more information on paying a holding deposit, please click here.

Security Deposits

 

🟧 This may also be referred to as a tenancy deposit.

🟧 Security deposits can be a maximum of 5 weeks' rent in accordance with the Tenant Fees Act 2019.

🟧 This deposit must be protected in a deposit protection scheme.

🟧 This deposit is held in the case of damages or rent arrears.

🟧 For more information, please visit Shelter - Tenancy Deposits.

 

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Pound Sign Arrow ImageDeposit Protection Schemes

Your deposit must be protected in an official deposit protection scheme. Your landlord/agent must protect your deposit and provide you with information about where your deposit is being held, the deposit return procedure and other prescribed information within 30 days of receiving your deposit.

The prescribed information includes a certificate from the tenancy deposit scheme with the following:

  • a unique reference number

  • your name(s)

  • the deposit amount

  • the details of your tenancy

Some landlords may attach the prescribed information to the contract so you may only receive a certificate once the deposit has been protected.

​Both you and your landlord should sign the certificate. It is important that this is kept safe as it may come in useful later on. Your landlord must also give you a copy of the scheme’s ‘Information to Tenants’ leaflet.

If you are a group, you may need to nominate a lead tenant who will represent your group and will be the main contact for the deposit protection service.

If there are any rent arrears or damage to the property at the end of the tenancy, the landlord may request to make deduction form the deposit to cover these costs.

Note: This information applies to Assured Shorthold Tenancies (ASTs). Landlords are not required to protect lodger deposits. For more information on deposits if you are a lodger, please visit Shelter - Lodgers or email us at manchesterstudenthomes@manchester.ac.uk.

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The Different Schemes

There are three registered deposit protection schemes:

Landlords are free to choose which one they want to use, and from a tenant’s point of view they all offer the same protection.

The Custodial form takes the money from the landlord and holds it throughout the tenancy.

The Insurance form insure the deposits and landlords keep hold of the money throughout the tenancy. The money is only handed over to the scheme if there is a dispute.

If you would like to read more about Tenancy Deposits you can visit Shelter.

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Rent Payments

A landlord will normally ask for the first instalment of rent to be paid on the first day of the tenancy or just before. In most cases rent is due on a monthly basis, although some private halls ask for termly rent payments.

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The easiest way to pay rent is by setting up a standing order so the money is paid directly into the landlord’s bank account.

This way you won’t forget to pay your rent, it is easier to keep track of your payments and this is much safer than carrying cash!

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Record Keeping

Keep a record of all communications and correspondence with your landlord and preferably contact them via email. Request a copy of the tenancy agreement from your landlord and make sure you keep information about your deposit, what fees you have paid and receipts etc.

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Third Party Guarantor with MMU

If you are looking to rent in the private sector, you may be asked to provide a UK guarantor which, in most cases, will be a parent or guardian.  If you are unable to provide a UK guarantor, Manchester Met University has partnered with Housing Hand to alleviate this issue for students. Housing Hand stands as the guarantor for students who are unable to provide one. You can find more information about the service here, and if you wish to apply, you should apply via the MMU specific application form here. If you are a care leaver or an estranged student who wishes to use Housing Hand, or if need any more information about the service before applying, please contact the Student Financial Support team at Manchester Met on 0161 247 1045.

More information can be found on the MMU Accommodation Guarantor Scheme website.

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