What Help can you get with rent deposit?
Paying your rent deposit
Sometimes paying for things such as rent may be a bit overwhelming and paying for a rent deposit can be even more overwhelming given that it is a large sum of money that you essentially put away for years and may never receive back in full.
Nonetheless, you have to make your rent deposit payment.
If you are struggling to make your rent deposit payment and need help with your rent deposit there may be a few options for you.
In this guide, we will go through those options.
Help paying your rent deposit
Saving up to pay your rent deposit can be very hard if you are on low income or if the rent deposit is very high. It can be even harder to save up a rent deposit if you are a low-income earner.
You can get help with your rent deposit from a variety of ways. They include:
Rent deposit scheme
Rent guarantee scheme
Homelessness prevention fund
Social services
Discretionary housing payments
What is a rent deposit scheme?
A rent deposit scheme loans you money in advance to pay your rent deposit. You will then have to pay this money back over a set time. which you’ll pay back over time. Rent deposit schemes are offered through your local council and you will need to check with them to see if you are eligible for their rent deposit scheme.
What is a rent guarantee scheme?
A rent guarantee scheme (or bond scheme) is a written guarantee from the local council or rent guarantee scheme provider to your landlord. It is also known as a bond and it is given in place of the cash rental deposit.
If you cannot then pay your rent deposit the rent guarantee scheme provider will then give your landlord the bond as payment for your rent deposit.
In this case, you do not have to pay the rent deposit immediately but you will have to pay the rent guarantee scheme provider any amount that is paid out through the bond.
An example of a rent deposit guarantee scheme which helps with rent deposits is this one run by the Richmond council.
In some cases, you may be able to get help from either the homelessness prevention fund or social services. They may be able to provide you with some money which you can use to pay your rent deposit r they could help you with all the money you need to pay your rent deposit. You will need to pay this back over time.
For more information on any of the above options which offer help with rent deposits you should contact your local council.
Discretionary housing payments
You may be able to claim discretionary housing payments from your local council if you get housing benefits and need help with the costs of your housing.
A Discretionary housing payment is an extra payment to help people who are struggling with their housing costs.
You may also be able to get help with your rent deposit from charities. Your local council will have an updated list of charities who offer such help.
It is also important to note that the schemes above are mainly for people renting with private landlords.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.