Bills and budgeting
Budgeting for your bills and expenses is an essential life skill.
Work out what you can afford before you start your home search. Don’t overstretch yourself on rent, because you’ll need to pay monthly household bills along with day-to-day living costs.
Deposits
Deposits are intended to provide landlords with protection if tenants damage or alter a property. The 2019 Tenant Fees Act sets a limit on your refundable tenancy deposit. The maximum deposit you can pay is 5 weeks' rent.
You’ll usually transfer a deposit when you sign your contract with the landlord or agent. Before moving in, check the inventory, take photos, and keep records of any communication with your landlord or agent. This way, you’ll have evidence in case a dispute arises later.
To ensure you receive your full deposit back when your lease ends, keep your place clean and in good order. You should also report any issues to your landlord straight away.
Who holds my deposit?
Your landlord must put your deposit in a government-approved tenancy deposit scheme within 30 days of receiving it and inform you of the details. You can use the Shelter Deposit Protection Checker to check if your deposit is protected.
Will I get my deposit back?
Your landlord or agent will check the property at the end of your lease to make sure it's in good condition. If it isn't, the Landlord may decide to deduct all or part of the deposit. The relevant Deposit Protection Scheme will then notify you.
If you’re not happy with the deductions your landlord is proposing, you can ask for it to be taken to Dispute Resolution, but you’ll need evidence to back up your case.
If there are no deductions to be made, the Landlord will notify the Deposit Protection Scheme to return the deposit to you.
Fees
Before agreeing to a tenancy, make sure you ask the landlord or agent for a list of all the tenant fees you need to consider. Refundable holding deposits (to reserve a property) are capped at no more than 1 week's rent.
Agencies can't charge for things like registration, viewings, bookings, and general administration fees. Landlords and agents can charge for:
- Rent
- Early termination of the tenancy (requested by you)
- Changes to the tenancy agreement (capped at £50 or reasonably incurred costs)
- Bills such as utilities, TV licence and Council Tax
- A default fee for late payment of rent
- Replacing a lost key or security device.
Utility bills
You'll likely split the bills with your housemates. It's important to decide how to pay them on time and what to do if someone moves out. Make sure all tenants' names are on each bill; that way a single tenant won’t be chased for late payments, and no-one is left to pay the entire bill.
Meter readings
You should take meter readings when you first move in and when you move out (even if this is before the end of the tenancy agreement). Provide these to the utility companies to help prevent confusion on who owes what. It's your responsibility to notify providers of a change in occupiers.
Switching providers
You don't necessarily have to stick with one service provider. However, tenancy agreements often require you to get your landlord's permission before switching providers. If you do decide to switch providers, shop around on websites such as Which.
Broadband, TV and phone
Remember to get permission from your landlord or letting agency before installing phone, digital TV (including satellites dishes) or broadband. If in doubt, always check with your landlord before any work is done.
Council tax
Students studying full time are exempt from Council Tax. You should make sure the Local Authority is aware that you're a student, so you don’t receive any bills.
Council tax applies to the whole property. If a non-student is living in the same property, they will have to pay Council Tax. A single non-student in your property will be classed as a single occupier and will be eligible for a 25% discount.
If more than one non-student is living in a property with other students, the Council Tax for the whole property applies. Even though you may be a student and technically exempt, your non-student housemates may want a contribution towards the payment, so agree arrangements before living with non-students to ensure you’re happy.
Insurance
We strongly recommend that you insure your possessions. There are several insurance providers for students, so shop around. Take a second to think about how much you own. You might not think it’s that much, but if you add up the cost of everything you have – laptop, TV, mobile, clothes, it’s probably far more than you think.
TV licence
You’ll require a TV Licence to watch or record television programmes as they are being shown on TV, regardless of what you use to stream this TV. It’s your responsibility to apply for and obtain a TV licence.