Deposits & Guarantors: A Simple Guide for Students

When renting a property as a student, understanding the terms of your deposit and the role of a guarantor is essential to ensure a smooth rental experience. While the terms “deposit” and “guarantor” might seem a bit daunting, they’re common elements of student rental agreements, and having a clear understanding of them will help you avoid any potential issues down the line.

In this blog, we’ll explain everything you need to know about deposits and guarantors, making it easier for you to navigate the rental process with confidence.

Please note, not all landlords use deposits. Here at Hoots, it is not something we do. However, we do require a guarantor. 

1. What is a Deposit?

A deposit is a sum of money that you pay to your landlord or letting agent when you sign your rental agreement. This money is typically held by the landlord to cover any potential damage to the property or unpaid rent during your tenancy. At the end of your lease, your deposit will be returned to you, provided you’ve met the conditions set out in your contract, such as keeping the property in good condition and paying your rent on time.

How Much is the Deposit?

The standard deposit for student rentals in the UK is usually between four to six weeks’ rent. The exact amount will depend on the property’s rent and your landlord’s requirements. However, there are some rules in place to protect tenants from excessive deposits:

  • Maximum Deposit Limit: By law, the deposit cannot exceed five weeks’ rent if the annual rent is under £50,000. If the rent is over £50,000, the limit is six weeks’ rent. This likely won’t affect students, as their rent will likely not be this expensive. 
  • Deposit Protection: Your landlord is legally required to protect your deposit in a government-approved deposit protection scheme. This ensures that you get your deposit back at the end of your tenancy if you meet the terms of the contract.

Top Tip: Always check your deposit is protected and that you receive confirmation of the scheme your landlord has used. If it isn’t, you may not be able to get your deposit back easily.

2. Why Do You Need to Pay a Deposit?

The deposit serves as security for the landlord. It provides financial protection in case there is any damage to the property, unpaid rent, or any other breaches of the tenancy agreement. It also gives the landlord the assurance that you’re serious about renting the property and taking care of it.

As a student, you’re likely renting for the first time, and it’s important to ensure that your deposit is returned when you move out. This is where the condition of the property and your payment history come into play.

3. What Can Affect the Return of Your Deposit?

There are several factors that can affect whether you get your deposit back in full. Here are some of the common reasons why a deposit might be withheld:

  • Unpaid Rent: If you miss rent payments during your tenancy, your landlord can deduct this from your deposit.
  • Property Damage: Any damage to the property beyond normal wear and tear (like broken furniture or marks on the walls) can result in a deduction from your deposit.
  • Cleaning Costs: If the property is not cleaned properly when you move out (including carpets, kitchen appliances, and bathrooms), the landlord may use your deposit to cover cleaning costs.
  • Missing Items: If any items from the property are missing (such as furniture, appliances, or keys), the cost of replacing them may be deducted from your deposit.

Top Tip: Always leave the property in good condition when moving out and make sure all your belongings are removed. A thorough cleaning job can help ensure that your deposit is returned in full.

4. What is a Guarantor?

A guarantor is someone who agrees to pay your rent or cover costs if you fail to meet your obligations under the tenancy agreement. A guarantor is often required for students because many landlords feel that students may not have a reliable credit history or income to guarantee rent payments.

Typically, a guarantor will be a parent or guardian, but it can also be a close relative or someone else who is willing to take on this responsibility.

What Does the Guarantor Agree To?

When you sign your rental contract, your guarantor will also need to sign a guarantor agreement, making them responsible for paying rent if you don’t. They are essentially stepping in to cover your financial obligations under the lease.

Here’s what a guarantor’s responsibilities may include:

  • Paying Rent: If you fail to pay your rent, the guarantor is legally obligated to pay it on your behalf.
  • Covering Damages: If there is any damage to the property that isn’t covered by your deposit, your guarantor could be responsible for the cost of repairs.
  • Legal Costs: In the event of any legal proceedings regarding the tenancy, the guarantor could be required to pay any associated costs.

Top Tip: It’s important to discuss the role of the guarantor with them before you sign the agreement. They should be aware of their responsibilities and the potential financial implications.

5. What Happens If You Don’t Have a Guarantor?

If you don’t have a guarantor, it may be more difficult to secure a rental property. However, there are alternative options:

  • Paying a Larger Deposit: Some landlords might allow you to rent without a guarantor if you’re willing to pay a larger deposit upfront.
  • Providing Proof of Income: If you have a part-time job or other sources of income, some landlords may allow you to rent without a guarantor if you can demonstrate you can cover the rent.
  • Guarantor Services: There are also guarantor companies that will act as your guarantor for a fee, but these can be quite expensive.

Top Tip: If you don’t have a guarantor, speak to your letting agent or landlord about alternatives. They may be willing to work with you to find a solution.

6. How to Ensure You Get Your Deposit Back

To make sure you get your deposit back when you move out:

  • Pay Your Rent on Time: Make sure you meet your rent deadlines and keep records of any payments.
  • Take Care of the Property: Treat the property with respect, keep it clean, and report any issues to your landlord promptly.
  • Clean Before You Leave: A thorough clean will help ensure that you leave the property in good condition.
  • Communicate with Your Landlord: If you’re unsure about something, communicate with your landlord or letting agent. Keeping them informed can help avoid misunderstandings.

Conclusion: Navigating Deposits and Guarantors with Confidence

Understanding the roles of deposits and guarantors in your student rental contract is essential for a smooth rental experience. By following the terms of your agreement, keeping the property in good condition, and maintaining clear communication with your landlord, you can ensure a stress-free tenancy and get your deposit back when you move out.

If you’re still unsure about any of the terms in your rental agreement, don’t hesitate to ask your letting agent or landlord for clarification.