UK Deposits vs Australia Bonds
20 March, 2019
2 mins read
When looking to rent in student accommodation, whether in the UK or Australia, students should know what does the house rental agreement in the country they’re going to require. It’s important to be prepared because there are some slight differences in some aspects. For instance, student accommodation in the UK will ask you to pay a deposit to reserve your room and they’re more often than not refundable, while in Australia there is no deposit. Instead, students will be asked to pay a bond. Not to worry, here’s what you need to know about paying a student housing deposit or bond before signing your student accommodation tenancy agreement:
Deposit vs Bond
What Is a Deposit?
Before any tenancy agreement is signed, usually a holding refundable deposit is required to be paid by the potential tenant. A deposit acts as a sort of assurance that an agreement is to be signed in the near future. In the event that the tenant changes their mind before the agreement’s date and asks for the deposit back, it should be returned in full. Furthermore, if the tenant signs the agreement and completes the agreed-upon duration, the deposit will then be returned as well. Students should understand that a deposit protection service acts as a type of security against any damage to the room or failure to pay the rent. Student accommodation in the UK requires these types of deposits for reservations.
What Is a Bond?
Unlike a deposit, a rental bond is non-refundable. It is similarly paid before the start of the tenancy. However, it sums up to 4 weeks of the rent and that’s why it will not be returned to the tenant as they are considered a part of the rent already. Australian student accommodation requires these types of bonds to reserve rooms for students.
Questions to Ask When Viewing a Student House:
1- How much is the deposit/bond? Will I make use of the deposit protection scheme?
2- Are there any extra application fees or bills?
3- Would I have to pay for extra bedding and kitchen packs?
4- What about dual occupancy options? How are they managed?
It is also better to ask around about the transportation links from the student accommodation you are considering to choose to your university and calculate the estimated time of arrival.
To get help with deposit and rent in advance, please contact our Accommodation Experts via [email protected]. They will be more than happy to help with your student accommodation deposit or whatever that you might need.