‘No Deposit’ Offers: Too Good to Be True?
If you come across a room to rent in London where no deposit is needed, proceed carefully. In the short term you might feel like you’re saving money, but in the long run this arrangement could lead to serious problems. Think twice – is this deal really worth it?
Usually landlords or letting agents who offer a ‘no deposit’ option won’t ask renters to sign any lease agreement. This is most often done in shared living situations, where housemates tend to be strangers before moving in together. In this arrangement, renters need more protection – not less.
So, what risks could you face when renting a room in London without a deposit? Here’s a few:
- Your landlord could increase your rent at any time. As well as leading to unexpected bills, this could result in you paying more than what the property is worth.
- Issues with property damage caused by your roommates. Landlords don’t want to sort out who is responsible for damage, they just want the costs repaid. If these conflicts escalate, they can even end up in court.
- It’s hard to feel protected when there are no clear rules to follow. When you pay a deposit and sign an agreement, you are protected by that agreement. Without it, it’s hard to know what to expect from your landlord or letting agent, and what they might expect from you in return.
How does that sound? Not very appealing, right? That’s why most decent agencies will always ask for a deposit. And if they don’t, it should make you reconsider whether you can trust them.
In most cases, this arrangement simply isn’t worth the risk. Protect yourself from unnecessary problems by sticking to the rules and dealing with professionals.