Landlords of privately rented accommodation may require a deposit before agreeing to a tenancy. The deposit covers the cost of any damage done to the property while the tenant is living there. The deposit will be the equivalent of a maximum of one months’ rent.
Some tenants want to rent privately but cannot afford to pay a deposit. The Rent Deposit Guarantee Scheme helps people on low incomes to rent privately by guaranteeing to pay the damage deposit, should a genuine claim be made by the landlord.
Prospective tenants must be homeless or at risk of becoming homeless and able to provide evidence of one of the following:
Prospective tenants will not be eligible if they have:
For a minimum six month tenancy agreement.
The deposit guarantee will cover a maximum of one months' rent for loss or damage to the property or any items on the inventory caused by the tenant, and not covered by household insurance.
It will not cover:
To take part in the scheme, landlords are expected to meet a range of good practice criteria. They must:
Once the tenant has found a suitable property, he or she can contact the landlord direct or contact our Housing Needs team, who will talk to the landlord on the tenant’s behalf, providing details of the scheme.
Prospective tenants must not commit themselves to a tenancy until an inspection has been made and all the paper work received and completed otherwise they will become ineligible for the scheme.
At the end of the tenancy, the landlord and the tenant should inspect the property. An officer from the council can attend the inspection, if requested by either party. If a claim is made against the damage deposit, this will be recharged to the tenant.
Yes, tenants can use the scheme again, however, they will not be considered if they have breached a condition of the tenancy or caused damage to a rented property.