Navigating the costs of renting student accommodation can be confusing, especially when you’re on a tight budget.
We understand your concerns, and we’re here to help. In this guide, we’ll break down the fees letting agents typically charge, what you can expect to pay, and how to avoid any hidden costs. With this information, you’ll be better equipped to budget effectively and find the perfect place without any financial surprises. Let’s dive in and demystify the world of letting agent fees together!
The Tenant Fees Act (2019)
Before the Tenant Fees Act, renters across England, Wales, and Scotland struggled to find properties due to letting agent fees. In addition to finding the money for a deposit and the first month’s rent, agents’ fees included references, credit checks, administration costs, and tenancy renewals.
The act applies to:
- Property guardians
- Student lettings – from both private landlords and universities
- Lodgers
- People renting rooms in a shared house
- Assured shorthold tenants
- Guarantors
In addition, the law ensures that tenants pay a holding deposit of a maximum of one week’s rent.
Which charges do students pay for rented property?
While students definitely have it a lot easier today than before, there are still fees to be aware of. Remember, the amount you pay depends on the type of property you choose and its location. Before signing a contract, it is important to check your monthly rent and other fees.
Deposits
When you apply for student accommodation, the agent must run some checks. Your refundable holding deposit secures the property for you while these checks are ongoing, and you’ll receive the money back if your application is unsuccessful.
Your security deposit shouldn’t exceed more than five weeks’ rent, and it’s refunded when your tenancy agreement ends. However, if there’s any damage, the agent can keep some or all of your deposit to cover repairs.
Rent and utilities
Letting agents usually base a property’s monthly rent on its location, size, and proximity to amenities. Most students opt for shared housing, as it’s usually the most affordable option. However, there are student bedsits and flats available for those who prefer more privacy.
When it comes to utilities, students don’t have to pay council tax, and many accommodation options include water, gas and electricity. Some landlords will provide free WiFi and TV, but you’ll usually need to pay for a TV licence.
It depends on the landlord, but checking your tenancy agreement and asking the letting agent can help you avoid additional fees.
Fees associated with tenancy agreements
Most tenancy agreements have strict clauses that outline your responsibilities as a renter. For example, if you decide to terminate the tenancy early, you will be subject to additional charges.
Most landlords cap these fees based on how much rent they’re losing out on and the costs associated with finding a new tenant. If you’re allowed to amend your tenancy – such as adding or changing tenants – you might have to pay a fee of up to £50.
Late rent payments
Tenants are legally required to fulfil their rental obligations, and a late payment is never a good idea. If your rent is up to 14 days late, the letting agency can charge an interest rate of up to 3%. However, a private landlord can take action if you’re more than two months late paying rent and initiate eviction proceedings.
That’s why it’s always best to stay on track with your payments and choose a property that aligns with your budget.
Broken or lost keys
If you lose or break your keys, the landlord can charge for a replacement. However, the laws ensure you’ll only pay to replace the keys. They should never charge more than that, so check the receipt if unsure.
Do I pay any other fees to letting agents?
Letting agents are responsible for helping students find the right property and taking the stress of listing and showing accommodation away from landlords. The good news is, as a student, you won’t pay any fees to the letting agency—aside from your rent, refundable tenancy deposit and holding deposit.
The property owner will pay for the agent’s services, including:
- Tenant Finding Fees: Agents advertise and show a property on the landlord’s behalf. They usually charge a one-off fee or take a proportion of the monthly rent.
- Management & Communication Services: Some agencies offer a full management service. While this costs more, many landlords happily pay for it, as the agent handles everything.
- Rent Collection Fees: Most agencies will also charge a percentage of each month’s rent.
How much will I pay for my accommodation?
The accommodation cost depends on where you live and the type of housing you choose. While many students choose halls of residence, others prefer the private sector, which is more flexible and can be cheaper in some areas.
Here are the average monthly costs of student housing in the UK’s most popular university cities:
- London: Between £500 and £3,000 – depending on the type of housing.
- Manchester: Between £700 and £1100
- Sheffield: Between £303 and £1083
- Plymouth: Between £560 and £1000
- Cardiff: Between £660 and £806
- Edinburgh: Between £370 and £1064
Fully furnished rooms are usually more expensive than unfurnished properties, but they can be more convenient. If you’re looking for the best properties, compare top-rated letting agents in your area and don’t be afraid to ask questions.
Any reputable agent will happily answer them and give you a complete breakdown of your rental costs.
The bottom line
Now that you know what you do and don’t have to pay when renting a property, it’s time to decide where you’ll live. If you’re looking for the best letting agents all in one place. WhichPad is your dedicated student rental website.
We take our commitment to your experience seriously and only advertise reputable letting agents with positive reviews. Search for student accommodation by area today, or feel free to contact us if you require support.
