When it comes to needing access to a lot of money in a short period of time, it is fair to say that moving home can be an expensive period. Whether you are buying a home or you are looking to rent property, there are a number of up-front costs that have to be taken care of. A rent deposit is just one example of the costs associated with renting and if you need a helping hand in raising these funds, a guarantor loan may be exactly what you were looking for.
You will find that most landlords will ask for a rent deposit as part of the entry process of moving into the flat. The amount that the landlord can ask for will vary but it is often an additional month’s rent but don’t be surprised if some landlords’ ask for one and a half months or even two months’ rent. The level of demand for rental property is so high that many landlords feel justified in charging this sort of price and asking for such a notable rent deposit is of benefit in two key ways for a landlord.
Need extra cash for a rent deposit?
Firstly, asking for such a high level of rent deposit gives an indicator about the tenant and their access to pay bills. This is a big requirement and someone who can come up with this sort of money at short notice or when requested is more likely to provide the landlord with comfort and peace of mind when it comes to charging rent on a monthly basis.
The money will also give the landlord confidence that if problems arise at the end of the tenancy, the rent deposit is there and could be used to claim back on any repair work that needs to be carried. There are legal requirements regarding this rent deposit and it must be placed within a Government approved scheme. There is also the fact that the landlord must provide the tenant with information relating to the deposit’s whereabouts within 30 days. If a landlord fails to meet the requirements regarding the rent deposit, they may find themselves in trouble at a later date and it could provide the tenant with more security when it comes to their rights.
If you need assistance in providing a rent deposit, a guarantor loan may provide you with more flexibility. It is important to give yourself the best opportunity of meeting the requests placed upon you.