Information for private landlords: rents, deposits and bonds

Rent is the money agreed to be paid by a tenant to you for the use of your property for a period of time. Once rent is agreed, it cannot be changed without appropriate notice from you to the tenant. It is common for rent to be paid in advance.

Tenants who pay weekly are entitled to a rent book, in which payments are recorded and signed for by both parties. You must be able to provide up to date, accurate statements of accounts for tenants paying monthly or other periods.

Rent can include amounts for utilities, but these should be itemised and accounted for separately. You cannot charge more for utilities than you pay for them.

Tenants can be responsible to pay service charges, for example, towards cleaning in a lobby, gardening or lift servicing. This should be noted separately in the tenancy agreement, and information about the service contract with the building management or owner should be shared with the tenant at the start of the tenancy.

Housing Benefit is paid to tenants of private landlords to help them afford their housing costs.

The amount payable is determined by the size of home needed and the household income. If rent is more than the Housing Benefit amount, the tenant pays the difference.

If you are experiencing problems with rent payment contact the housing benefit team for advice.

Tenants who claim Universal Credit may receive an amount to help pay rent within their monthly payment. This is administered by the Department of Work and Pensions.

A security deposit is an amount of money, typically one or two month’s rent, which is required at the start of a tenancy to cover any damage to the property, or other costs arising from a breach in the terms of the tenancy.

You must protect the value of the deposit using a statutory scheme. You must inform your tenant of how their deposit is protected and how the scheme works within 30 days of receiving the deposit.

Failure to comply can result in a fine of up to three times the value of the deposit, and a restriction on your ability to repossess a property. We strongly advise you to seek guidance. The UK Government has more information on tenancy deposit protection.

A tenancy bond is similar to a deposit, but instead of money being provided, a promise of funds to meet the costs of damage or other costs arising from a breach in the tenancy is made. The promise is often underwritten by a Local Authority or charity. Bonds assist people who cannot afford to provide a tenancy deposit.

Locally, there is the Conwy and Denbighshire Bond Scheme.