Renting 101: Deposits, Guarantors and Contracts Explained
Signing your first tenancy agreement involves a stack of unfamiliar terms — deposit protection schemes, guarantors, assured tenancies — that everyone around you seems to already understand. Here’s what actually matters before you hand over any money.
By the First Wage Editorial Team · Published 18 September 2026 · 11 min read
The Short Answer
Your deposit is legally capped at 5 weeks’ rent (6 weeks if annual rent is £50,000 or more) and must be protected in one of three government-approved schemes within 30 days of you paying it — your landlord is legally required to give you details of which scheme and how to get your money back. A guarantor (usually a parent, if you’re a first-time renter without a rental or credit history) agrees to cover your rent if you can’t pay, and is commonly requested for students or anyone without an established UK income history. Since May 2026, most tenancies became “assured periodic tenancies” under the Renters’ Rights Act, meaning no more fixed-term contracts and stronger protection against no-reason evictions.
Your Deposit: What’s Legally Required
The cap. In England, your deposit cannot legally exceed 5 weeks’ rent if the annual rent is under £50,000 (which covers the vast majority of first flats), or 6 weeks’ rent if annual rent is £50,000 or more. If a landlord or agent asks for more than this, it isn’t legal, regardless of how the request is framed.
Protection. Once you pay a deposit, your landlord must place it in one of three government-authorised tenancy deposit schemes — the Deposit Protection Service, mydeposits, or the Tenancy Deposit Scheme — within 30 days, and give you specific written information about which scheme, how the deposit is protected, and what happens if there’s a dispute at the end of the tenancy.
Why this matters practically. If your landlord doesn’t protect your deposit correctly, a court can order them to pay you between one and three times the deposit amount as compensation, and you have up to six years to bring a claim. It’s genuinely worth checking your deposit is protected — most schemes let you verify this online using your name and postcode.
Getting it back. At the end of your tenancy, once both you and your landlord agree on how much (if any) should be deducted, the remaining amount should be returned within 10 days. Disagreements about deductions go through the deposit scheme’s free dispute resolution service rather than needing court action.
Guarantors: When You Need One and What It Means
A guarantor agrees to cover your rent (and sometimes damages) if you’re unable to pay — it’s a way for landlords to reduce risk when renting to someone without an established credit history or UK income record, which describes most first-time renters, especially students or people renting for the first time straight out of education.
Who’s commonly asked for a guarantor: students, people new to the UK, anyone without a strong credit history or with irregular income, and sometimes anyone renting for the very first time regardless of income.
What being a guarantor actually commits someone to. It’s a legally binding obligation, not an informal favour — the guarantor (commonly a parent) is contractually liable for the rent if you don’t pay, for the length of the agreement they’ve signed up to. This is worth understanding clearly before asking someone to be your guarantor, since it’s a real financial commitment on their part.
Alternatives if you don’t have a guarantor. Some landlords accept a larger deposit, rent paid several months in advance, or a guarantor insurance product instead — worth asking directly if a guarantor isn’t an option for you.
What Changed With the Renters’ Rights Act
The Renters’ Rights Act came into full effect on 1 May 2026 and changed the structure of most tenancies significantly:
No more fixed-term contracts. Existing and new tenancies converted to “assured periodic tenancies,” meaning there’s no longer a fixed end date built into the agreement — tenancies simply continue on a rolling basis.
Section 21 “no-fault” evictions are gone. Landlords can no longer end a tenancy without giving a specific, legally recognised reason (a “ground” under Section 8) — this removes what was previously one of the more one-sided aspects of renting in England.
More flexibility to leave. As a tenant, you can generally give two months’ notice to move out at any point, rather than being locked into a fixed term.
What to Actually Check Before You Sign
Who’s responsible for what repairs. Contracts should specify this, but it’s also backed by wider legal obligations on landlords for things like gas safety, electrical safety, and keeping the property fit to live in — worth knowing these exist as a baseline regardless of what the contract says.
What’s included in the rent. Some tenancies include bills, council tax, or a TV licence; most don’t. Never assume — check explicitly, since it materially changes your actual monthly cost (see our guide on the real cost of moving out for the costs that often catch people off guard).
The specific deposit amount and how it will be protected. Confirm it’s within the legal cap and ask which scheme will be used before you pay anything.
Any restrictions that matter to you — pets, subletting, having guests to stay for extended periods, decorating. These vary meaningfully between contracts and landlords.
Common Mistakes First-Time Renters Make
Paying a deposit in cash with no paper trail. Always pay by bank transfer and keep a record — it’s far easier to prove what you paid and when if there’s ever a dispute.
Not checking the deposit protection status. It’s a genuinely quick check, and landlords who haven’t protected your deposit correctly are in breach of the law, regardless of whether they meant to be.
Signing without reading the whole document. Tenancy agreements are usually shorter than employment contracts — actually reading it, including the sections about repairs and notice, takes less time than it feels like it will.
Assuming a verbal agreement about “extras” is binding. If a landlord verbally agrees to something not in the written contract — an early move-in date, a promise to fix something before you move in — get it in writing, even just over email, so there’s a record if it’s later disputed.
First Wage Takeaway
Most renting problems come from unclear or unprotected money, not from the tenancy itself — a properly protected deposit, a clearly understood guarantor arrangement, and a contract you’ve actually read cover the vast majority of what goes wrong for first-time renters. None of it requires legal expertise, just checking the basics before you sign or pay anything.
Frequently Asked Questions
Can a landlord ask for more than 5 weeks’ rent as a deposit?
Not legally, for most tenancies where annual rent is under £50,000 — the cap is a hard legal limit, not a guideline.
Do I need a guarantor if I have a full-time job?
Not necessarily — having a stable income and reference history reduces the likelihood a guarantor will be requested, though it still varies by landlord and letting agent.
What happens if my landlord and I disagree about deposit deductions?
The deposit protection scheme offers a free dispute resolution service specifically for this, so it doesn’t need to go to court in most cases.
Can my landlord still evict me for no reason under the new rules?
No — since the abolition of Section 21, landlords need a specific, legally recognised ground to end a tenancy, rather than being able to do so without a stated reason.