Deposits, fees and upfront rental costs
Identify holding deposits, tenancy deposits, rent and other charges, then check the England rules and payment timing before transferring money.
Ask for an itemised payment schedule before paying for a rental. Each line should say what the money is for, when it is due, who receives it and whether it can be refunded or credited. “Deposit” on its own is not enough information.
England guidance checked on 3 November 2026. Payment rules depend on the agreement. The Tenant Fees Act covers assured periodic tenancies and specified student and licence arrangements, with exclusions. Deposit protection and advance-rent rules also have their own scope. Check a resident-landlord letting or halls agreement against the relevant guidance instead of assuming it is an ordinary private assured tenancy.
Separate the three main payments
| Payment | Purpose | Main check |
|---|---|---|
| Holding deposit | Reserves the proposed tenancy while checks take place | Refund terms, agreement deadline and how it will be credited |
| Tenancy or security deposit | Held against the obligations covered by the agreement | Applicable cap, protection and return procedure |
| Rent | Pays for occupying the accommodation | Signed agreement, amount, covered period and due date |
Under GOV.UK's fee guidance, the holding-deposit cap is one week's rent for the tenancy, not one week's whole-property rent from every housemate. The normal agreement period is 15 calendar days from receipt, unless a different period is agreed in writing. Keep the proposed terms and any agreed change to that period.
Check a tenancy deposit on the correct rent
For tenancies within the relevant cap, the limit is five weeks' rent where annual rent is below £50,000 and six weeks where it is £50,000 or more. The assured-tenancy deposit guidance sets out the rules and scope. A cap is a maximum, not a requirement to charge that amount.
Fictional arithmetic example: a whole-home monthly rent of £1,560 gives annual rent of £18,720 and weekly rent of £360, using £1,560 × 12 ÷ 52. The five-week figure is £1,800; the one-week holding-deposit figure is £360. If three people share that one tenancy, those are household totals. How the housemates divide payment is a separate question.
Check when rent can be requested
For an ordinary private assured periodic tenancy in scope, rent must not be requested, encouraged or accepted before both parties have signed. During the period after signing and before the tenancy starts, the usual limit is one month's rent for monthly payments, or 28 days' rent for payments more frequent than monthly. There are specific exceptions, including certain council-arranged, social or supported arrangements: use the detailed advance-rent guidance.
The government's enforcement guidance excludes agreements signed, and advance-rent payments made, before 1 May 2026. Check an older arrangement against that transition guidance before applying these restrictions.
A holding deposit or tenancy deposit is a different category and can be requested before signing. This does not remove the need to verify the provider, proposed agreement and payment instructions. Do not rely on an old suggestion that paying several months before signing will secure a property.
Ask what happens to the holding deposit
Request the refund terms in writing. The official guidance sets limited circumstances in which money may be retained, and notification/refund rules. If the agreement proceeds, a credit towards rent or the tenancy deposit needs your agreement. Record the credit explicitly so it is not counted twice.
In the fictional example above, rent of £1,560 plus a £1,800 tenancy deposit totals £3,360. If the already-paid £360 holding deposit is agreed to be credited against those sums, the remaining amount is £3,000, not £3,360 plus another £360. This is a cash-flow illustration, not an instruction to pay on a particular date.
Verify protection and keep the information
For an assured periodic tenancy, the government deposit-protection guidance requires protection within 30 days of receipt. The landlord must also provide the required deposit information, including the scheme and dispute route. Check the amount, address and named parties against your records. Other accommodation types may differ.
A deposit-replacement product is not simply another name for a refundable deposit. Ask about its charges, liabilities and cancellation terms before choosing it. Do not assume a non-refundable fee cancels liability for damage or unpaid rent.
Query an unclear charge
Ask the provider to identify the permitted payment category and the calculation. The fee guidance contains specific conditions for tenant-requested changes, lost keys and late rent. A fee does not become lawful simply because it appears in a contract or on an invoice.
For a disputed charge, retain the advert, agreement, invoice and messages. Use the government guidance's official help routes or obtain individual advice from Citizens Advice or Shelter. This guide does not decide a particular payment dispute.
Payment-question sheet
| Record before paying | Your note |
|---|---|
| Exact payment name and purpose | ____________________ |
| Amount and calculation basis | ____________________ |
| Agreement type and official rule checked | ____________________ |
| Requested date and period covered | ____________________ |
| Refund or credit terms | ____________________ |
| Recipient independently verified through | ____________________ |
| Receipt and protection information retained | ____________________ |
Put each sum into the appropriate part of the rental budget and retain it with your move-in records.
Sources & further reading
- GOV.UK — Fees you can charge as part of a tenancy Checked 2026-11-03
- GOV.UK — Rent in advance and deposits Checked 2026-11-03
- GOV.UK — Tenancy deposit protection Checked 2026-11-03
- GOV.UK — Deposit information landlords must give tenants Checked 2026-11-03
- GOV.UK — Asking for rent in advance: guidance for local authorities Checked 2026-11-03