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no deposit option when signing for housing

Hey guys,

I am currently looking to rent and this letting agent has said that they offer a no deposit option, where you pay £36 a month instead of a deposit and may still have to cover cleaning costs and damages when you move out. I was wondering if anyone knew the benefits of this and whether this option is more beneficial than signing for a house.

Thanks!

Reply 1

Anonymous #2

Depends. Is it £36 a month for each month of the tenancy? It might be best to calculate how much the monthly option will cost in total compared to how much a direct deposit might (like how car sine hanger is usually cheaper if you pay annually rather than monthly). Also, check if your £36 a month gets protected like a deposit does. If not, then I wouldn’t take that option. If the monthly option gets protected and you’re entitled to your money back like you are with a normal deposit, then it’s just about whether you prefer that or not. If you’re not entitled to your deposit back if you pay monthly then I wouldn’t go for it.

Reply 2

Anonymous #2

Original post by Anonymous

Car insurance I meant. Sorry mate, trying too fast on a small keyboard

Reply 3

999tigger

Original post by Anonymous

Cant remember where I saw it but I believe this is a new trend and you can end up a lot worse off. Something is ringing alarm bells.

Reply 4

Anonymous #1

Original post by 999tigger

Cant remember where I saw it but I believe this is a new trend and you can end up a lot worse off. Something is ringing alarm bells.

really? How come? its my first time signing for a professional house and there's not a lot of help out there tbh.

Reply 5

Anonymous #1

Original post by Anonymous

yh, so you pay £36 a month on top of rent rather than the full deposit at the start. but you don't get the £36 a month back. so i'm slightly torn on what to do

Reply 6

FRS500

I don't understand what this £36 thing is tbh. But I do know there are no deposit options out there.

Tbh all the places I've rented bar my current one have been no deposit

Reply 7

999tigger

Original post by Anonymous

really? How come? its my first time signing for a professional house and there's not a lot of help out there tbh.

Let me have a think as i believe it was an article I read between 8-15 months ago. It seemed to be on the subject.

Reply 8

Anonymous #2

Original post by Anonymous

yh, so you pay £36 a month on top of rent rather than the full deposit at the start. but you don't get the £36 a month back. so i'm slightly torn on what to do

I would pay a direct deposit and make sure it gets protected and that I’m entitled to it back. Think about it, that’s £432 a year you’ll be laying( none of it that you can back when you leave the tenancy. Even if your direct deposit was £600 or something, at least you’d be Enfield to most of it back. Maybe even all if you don’t damage anything or pay late either rent etc or nothing breaks. I would go for a direct despiser instead did the monthly thing, I don’t trust it. Just sounds like another way for landlords to get more money from tenants that they don’t have to pay back

Reply 9

Anonymous #1

Original post by FRS500

I don't understand what this £36 thing is tbh. But I do know there are no deposit options out there.

Tbh all the places I've rented bar my current one have been no deposit

Instead of paying a deposit, you sign up for this scheme they have where you pay £36 a month. Its really confusing tbh

Reply 10

Anonymous #1

Original post by Anonymous

that does make a lot of sense. I'll ask them about how the deposit is protected and such as it just seems like the smarter option. Thanks!

Reply 11

Anonymous #2

Original post by Anonymous

that does make a lot of sense. I'll ask them about how the deposit is protected and such as it just seems like the smarter option. Thanks!

No problem :smile:

and sorry about the spelling mistakes and autocorrect for some reason :lol:

hope what I wrote was comprehendable at least

Reply 12

FRS500

Original post by Anonymous

Instead of paying a deposit, you sign up for this scheme they have where you pay £36 a month. Its really confusing tbh

One could argue that this money is a deposit. Is it some form of "insurance" or...?

Once upon a time there was a legal question as to whether 'rent in advance' was really a deposit. I can't see how this is anything different