Housing payment breakdown

Your one-stop guide to deposits, key money, and rent in advance.

Rent in advance

Landlords will vary as to how much rent in advance (if any) they will ask for. They can lawfully ask for any amount. If you are on income support, you may be able to get money from the social fund to pay for rent in advance. You may also be able to get help from a rent deposit scheme if there is one operating in your area. Contact an advice centre for details.

Deposits

A deposit is a sum of money which a landlord (or an agent acting on behalf of a landlord) can ask for at the beginning of the tenancy. This money is a security against non-payment of rent, damage to property or removal of furniture. Deposits are returnable when you leave. You will not get back all of your deposit if your landlord has to make deductions.

If your landlord takes money out of your deposit and you disagree with the reason for this, or if your landlord withholds the whole of your deposit without good reason, you can sue your landlord in the county court to recover the money.

Many tenants withhold the last month's rent to the equivalent of the deposit, especially if they know that their landlord has not paid back deposits of other tenants and there is no damage to pay for. Legally, you are not supposed to do this. Although it is unlikely, your landlord might then take court action to recover the rent arrears. You would then have to ask the court for your landlord to return your deposit.

For help with raising the money for a deposit you should contact a rent deposit scheme if one operates in your area. Details can be obtained from a local advice agency.

Premiums

A premium, sometimes referred to as `key money', is a non-returnable sum of money paid to a landlord for the grant of the tenancy. Although premiums are lawful they are uncommon.

* Don't hand over any money for rent or a deposit (cash or cheques) to your landlord or a letting agent without getting a receipt for it. The receipt should say what the money is for, and should include the date, the address of the property, the name/signature of the landlord (or agent) and the amount received. For further advice contact your local Citizens Advice Bureau or housing advice centre.