When starting a tenancy, two of the most important parts of the agreement are the rent and the deposit. Both play a crucial role in protecting the interests of landlords and tenants.

Rent

Rent is the regular payment a tenant makes to the landlord for living in the property.

• Amount & Frequency: Rent is normally paid monthly, but it can also be weekly or quarterly depending on the agreement.
• Rent Increases:
  • During a fixed-term tenancy, rent can only be increased if the contract allows it or both parties agree.
  • For periodic tenancies, landlords must follow legal procedures (e.g. serving a Section 13 notice).
• Rent Arrears: If rent is not paid, landlords may take legal steps to recover it. Tenants should always communicate early if they face difficulties paying.

Deposit

A deposit is a sum of money paid at the start of a tenancy, held as security against damage, unpaid rent, or breach of the tenancy agreement.

• Tenancy Deposit Protection: For Assured Shorthold Tenancies, the landlord must place the deposit in a government-approved scheme within 30 days.
• Amount: Since 1 June 2019, the maximum deposit landlords can take is five weeks’ rent (or six weeks if the annual rent is over £50,000).
• Return of Deposit:
  • Tenants are entitled to the return of their deposit at the end of the tenancy if the property is left in good condition and rent is fully paid.
  • Landlords can make deductions for unpaid rent, damage beyond fair wear and tear, or missing items.
• Disputes: If landlord and tenant disagree, the deposit scheme offers a free dispute resolution service.

Key Takeaways

• Rent must be paid as agreed in the tenancy contract, and increases must follow the law.
• Deposits give landlords protection but must be handled fairly and legally.
• Tenants should always receive confirmation that their deposit has been protected and be given the prescribed information from the scheme.

Rent and deposits are the backbone of any tenancy. Clear agreements, legal compliance, and open communication help both landlords and tenants avoid disputes and maintain a positive tenancy relationship.