Decide whether to take a deposit or use an alternative
There are a few alternatives that you could consider instead of taking a deposit
Check out our avoidance page for full details on various avoidance tactics.
- Get a guarantor. This is always recommended in any event but if you decide not to take a deposit, a guarantor (ideally a home owner) would be liable to pay for damages and rent loss if the tenant failed to pay. You will need a special tenancy agreement with built in guarantee, or you could use a separate guarantee form.
- Not recommended, but you could grant an assured tenancy. Though you could take a deposit without falling under the scheme, you could never give the tenant 2 months notice under section 21 Housing Act 1988. Therefore, the tenant would have full security of tenure and could live in your property for life! Please contact the Guild before considering this option. This option is ideally suited for student lets because they are unlikely to stay beyond the term (and even if they did they must pay full market rent).
- For more information regarding other alternatives, you can contact the Guild
