Upfront costs of private renting

A landlord or letting agent might ask you to pay:

• a holding deposit

• rent in advance

• a tenancy deposit

Most other fees are banned.

You cannot be asked to pay for things like credit checks, references or inventories.

Holding deposits

A holding deposit reserves a property for you while the landlord or agent checks your income or references.

You cannot be asked for more than 1 week's rent.

You should get this money back if the landlord decides not to rent to you.

But you could lose the deposit if you decide not to rent the property without a good reason.

Rent in advance

Landlords and agents can only ask for up to 1 month's rent in advance.

Tenancy deposits

Many landlords ask for a tenancy deposit before you move in. 

Your landlord can ask for up to 5 weeks' rent as a deposit.

A tenancy deposit is your money. You should get it back when your tenancy ends as long as:

• you do not owe any rent

• you leave the property in the same condition as when you moved in

Deposit replacement insurance

Your landlord or agent might suggest deposit replacement insurance instead of a tenancy deposit.

This is sometimes called a zero deposit.

You pay less at the start of the tenancy but it could cost more later on.

This is because you pay a non refundable fee for the insurance policy. The landlord claims on the deposit replacement insurance if they want to charge you for things like cleaning, damage or rent arrears.

The insurance company pays the landlord and then charges you. They could take you to court if you do not pay.

Utilities and household bills

You probably have to pay these costs unless they're included in your rent:

• utility bills for gas, electricity and water

• the internet

• TV licence

More about written information your landlord must give you about rent and bills.

Checking utility costs before you move in

A landlord must give you an energy performance certificate (EPC) for the property before your tenancy starts. EPCs are valid for 10 years. 

An EPC tells you:

• how energy efficient the property is

• estimated costs of electricity, heating and hot water 

The energy efficiency rating should be E or higher.

Check GOV.UK to see if the home you want to rent has an EPC.

Contacting gas, electricity and water suppliers

Take meter readings on the day you move in and contact the suppliers.

You might get a cheaper tariff if you claim benefits or are on a low income.

Ask your supplier if they have a 'social tariff'.

Citizens Advice has information about dealing with energy suppliers when you move.

Council tax if you rent the whole property

Ask who has to pay the council tax and how much it is before you sign your contract. 

Most tenants have to pay council tax direct to the council.

You get a council tax bill for the year. You can usually pay in monthly instalments.

There are 2 ways you could reduce your council tax bill:

• a discount

• council tax support - also called council tax reduction

A discount is based on your situation. For example, if you live alone or with someone disabled.

You can get council tax support from the council if your income is low.

Council tax in shared accommodation

Your landlord is usually responsible for the council tax if everyone living in the property has their own agreement for their room or bedsit.  

If you have a joint tenancy for the whole property, then you are usually all responsible for the council tax.