Unclear how much deposit to ask for?! Please help

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    Unclear how much deposit to ask for?! Please help

    Hello,
    I hope someone can give me a little advice please, I have this ad on Gumtree now:

    gumtree.com/london/72/75147972.html

    I am asking for 1.5 mths/6 wks rent as deposit (thus £1800) - do you think this is too much for this property and that I should ask for 1 mth/4 wks instead (thus £1200)? It's unfurnished.

    A potential tenant has lost interest due to the deposit requested, and I'm wondering if she's right as I'm a first time landlord and am not too clear, or maybe she just doesn't want to pay that amount. Any advice would be much appreciated, many thanks in advance.

    #2
    My view on this is to always require a deposit > 1 month as otherwise some tenants may get the idea that since their deposit is 1 month rent they can just not pay their last month rent...
    Based on that, 1.5 month rent is pretty standard.

    I think that if a potential tenant of a £1200 a month property looses interest because the deposit is £1800, it tells you that the property was perhaps beyond his means. So him going away could have saved you trouble down the road.

    Comment


      #3
      I'm a central London LL and always ask for - and get - 1.5 months deposit. It seems perfectly fair for the property on offer; a T could easily cause £1800 worth of damage, or rack up that much unpaid rent.

      But I rent via an agent and it may be that Ts looking on gumtree have different expectations, i.e. that it's cheaper all round than going via an agent.

      BTW the exposed brick fireplace looks a bit out of place, as though you haven't finished the refurb, and I assume it's not a working fireplace as the hearth isn't big enough.

      Comment


        #4
        A deposit of 6 weeks rent is not uncommon these days.
        This is how much I ask for and get without any problem.

        There is no issue as to "too much" deposit for a property (upto a certain amount which seems to be 2 months), providing that the rent is about right.

        Someone who can afford one month's deposit but can't afford 6 weeks deposit should be treated a bit warily because if their finances are so sensitive to a relatively small difference, they may have problems paying rent or have other money issues which could affect you.
        (Also, if it ever comes up, I would not accept the deposit being paid in installments for the same reason).

        Also, this is one person and you shouldn't take the opinion of one person so highly and totally.

        Your home seems to be a lovely house and you seem to have done a good job renovating the home, but I would put the deposit amount in the advert to avoid time wasting enquiries.
        (If I was being very picky, I would say to re-take the living room view from front to back picture so it is without the pile of boxes/decorating items, etc.)
        Natural selection is a wonderful thing
        You shall know them by their fruit
        Saying "Never say never", says it

        Comment


          #5
          Six weeks rent as a deposit is completely reasonable IMO too. If a T cannot find another £600 I would worry they are not living according to their purse.
          I'm a good tenant with great landlords
          I'm also a living, breathing, fully cooked female.

          Comment


            #6
            Jjlandlord – you’re right, maybe this is simply a reflection of the potential tenant's means; I need to learn to spot things like this! Thank you.

            Westminster – I do think gumtree's tenants have different expectations; re: my fireplace, no it's not a working one now though it used to be, it was my dad's house and he exposed the brickwork himself, so I’m going to leave it there : ) Thanks.

            Scrungy – I agree that it's a relatively small jump in price from 1 mth to 1.5mths. Thanks for your kind words about my house/refurb BTW, and the photo tip! Good idea to put the deposit amount in the ad too. Thank you!

            Brb – When you put it that way, ie “If a T cannot find another £600 I would worry they are not living according to their purse” - I couldn't agree more! Thanks

            Well I've let the person know I’m not budging on the deposit now.

            I'm really glad I signed up for this forum, I’m getting some really great help and information that is invaluable to a first time landlord like myself. Not just answers to my immediate queries, but lots of other questions that are thrown up in the process too. I hope that I will become knowledgeable and experienced enough to be able to give advice to you all one day too...
            Many thanks again to each of you for taking the time to reply!

            Comment

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