1. Holding deposit
As a university student, you might encounter landlords asking for a small holding deposit when you're interested in renting a property. This deposit is meant to secure the property temporarily while they prepare the tenancy agreement for your review and signing. It's important to know that, according to the Tenant Fees Act 2019, this deposit should not exceed the equivalent of one week's rent.
The holding deposit is only refunded if the Landlord decides not to continue with the rental agreement. However, if you, as the tenant, change your mind and decide not to proceed with the tenancy, the landlord can keep the holding deposit.
The holding deposit can also be retained by the landlord if you fail to sign the tenancy agreement within the specified timeframe. The usual "deadline for agreement" is about 15 days from the time you pay the holding deposit, but you and the landlord can mutually agree on a different timeframe, which could be more or less than 15 days.
Another deposit you may come across is a tenancy deposit. Unlike a Holding Deposit, this is to be paid when you sign the rental agreement and not before this.
The tenancy deposit is a refundable payment used to cover damages or unpaid rent when your tenancy ends. According to the Tenant Fees Act 2019, it's usually around one month's rent, but it can't exceed five weeks' rent.
If you've paid a holding deposit, the landlord might ask if it can be used as part of the tenancy deposit. That's fine as long as you agree in writing.
By law, tenancy deposits must be protected through an approved Tenancy Deposit Scheme (TDS) within 30 days of receipt, and you should receive evidence of this protection. If not, you can claim compensation, up to three times the deposit amount.
What is a Guarantor?
A UK guarantor, often referred to as a rental guarantor, is a person or entity who agrees to take financial responsibility for a tenant in the event that the tenant is unable to fulfil their obligations under a rental agreement. The primary responsibility of a guarantor is to cover any unpaid rent or damages that the tenant may owe to the landlord. In simple terms, a guarantor is an extra layer of protection for Landlords.
Who can be a Guarantor?
- Parents or Family Members: Parents or close family members are often the first choice as guarantors for students. They are expected to have a stable financial situation.
- Guardians: Legal guardians or individuals with a close relationship to the student can serve as guarantors.
- Spouses or Partners: In some cases, a spouse or long-term partner may act as a guarantor.
It's important to note that the requirements for guarantors can vary between landlords and letting agents. The guarantor is usually required to be a UK resident with a stable financial status, and they may need to provide proof of their income and undergo a credit check. Students and their potential guarantors should check with the landlord or letting agent for specific eligibility criteria and responsibilities.
What to do if you do not have a Guarantor.
In some cases where you may not have access to a guarantor e.g. you are an International Student then you may want to consider a Private Guarantor Service. Some companies offer professional guarantor services where students can pay a fee to secure a guarantor if they don't have suitable individuals in their network.
More information on this below:
Manchester Student Homes – Unite (IFS ( Intenationally Friendly Standards Landlords) who does not require a guarantor for int students. Specific landlords have opted into this https://www.manchesterstudenthomes.com/pages/International_Friendly_Standard.
Manchesterstudenthomes@manchester.ac.uk or 0161 275 7860.
- If you work full-time while pursuing part-time studies, you might not require a guarantor. Your salary can serve as a reference, given you can obtain an employer reference, and it meets a certain threshold.
- Full-time international students without access to a UK-based guarantor may be requested to pay their rent in advance, typically for 6 or 12 months.
Right to Rent checks are a series of verifications that landlords or rental agents in the United Kingdom perform to make sure that international university students have the legal right to rent a property in the country. These checks are in place to ensure that individuals with the appropriate immigration status can rent accommodation.
There are different types of Right to Rent checks, including:
1. Document Checks: This is the most common check, where the landlord or agent reviews your original identity documents, like your passport, visa, or residence permit. The specific documents required may vary depending on your immigration status.
2. Online Checks: In certain cases, landlords can conduct checks online using the Home Office's digital system. This system verifies your immigration status by matching your details with the government's database.
3. Landlord Accreditation Schemes: Some local authorities offer programs for landlords who have completed training and can carry out these checks as part of their accreditation.
4. Agent Services: Landlords can also delegate these checks to their rental agents, who are responsible for ensuring the checks are carried out correctly.
It's important for international university students to stay informed about the latest regulations concerning Right to Rent checks to ensure compliance with the law and avoid potential legal issues. Failing to perform these checks correctly can result in penalties and fines.
If you are unsure on what fees an agent or landlord can charge you with, don’t worry as we have got you covered on what they can and can’t charge you with!
Landlords and agents are not allowed to charge fees for:
1. Referencing and Credit Checks
2. Immigration Checks
3. Renewal of Tenancy on the Same Terms
The fees that landlords and agents can charge (apart from rent) include:
1. A refundable tenancy deposit, which cannot exceed 5 weeks' rent
2. A refundable holding deposit, which cannot exceed 1 week's rent.
3. Losses or reasonable costs incurred by the landlord or agent due to early termination of the tenancy by the tenant or if the tenant leaves without notice. This may include the balance of rent due for the remainder of the tenancy.
4. Up to £50 (or the actual cost if reasonably incurred) for changes to the tenancy agreement, including a change of tenant.
5. Payments of bills such as utilities, communication services, TV license, and Council Tax.
6. Interest on late payment of rent, if it's paid 14 or more days late, and if this is specified in the tenancy agreement.
7. Replacement of lost keys, but only if this is specified in the tenancy agreement.
These rules aim to make the rental process fair and transparent for tenants.