New data from deposit alternative provider Reposit reveals that student tenants incur lower average end-of-tenancy charges than renters in the wider private rented sector (PRS) -although they’re more likely to face a charge.
Reposit’s 2024 figures show that average end-of-tenancy charges in student rentals – which include arrears, cleaning, and damage – stood at £788, significantly below the £1,131 average seen across the broader PRS.
Despite the lower overall costs, charges were applied more frequently to student tenancies, with 63% ending in a charge versus 48% in the wider PRS.
Cleaning was the most common cause, followed by damage and then arrears – a pattern consistent across both sectors.
BREAKING DOWN THE DATA
When broken down, the data shows damage charges averaged £472 in student lets, compared to £563 elsewhere.
Cleaning charges, however, were higher for students, averaging £283 compared to £220 outside the sector.
In 2024 54% of student tenancies ended with a cleaning charge, versus 34% of non-student rentals.
Damage-related charges occurred in 29% of student lets, compared to 24% elsewhere.
Reposit says the higher frequency of charges in the student market – particularly for cleaning – shows the importance of streamlined, tech-enabled processes to reduce the administrative burden at the end of tenancies.
END-TO-END SOLUTION
Gurman Bains, Head of New Business at Reposit, says: “Our platform saves landlords and agents at least an hour at the end of each tenancy by eliminating the need to process deposit returns while our smart, end-to-end solution streamlines all claim-related admin.
“Among student letting agents where tenant turnover is high and cleaning charges are often incurred, deposit alternatives help manage these costs efficiently without complex deposit deductions or delays in returning deposits.
“One of the biggest time drains in traditional deposit schemes is negotiating disputed charges. With Reposit, supporting evidence can be uploaded instantly, allowing for faster resolution or direct tenant acceptance.”
GUARANTOR-BASED CHECKS
And he adds: “We’ve also tailored our process for student partners, offering more time to submit charges during the busy move-in/move-out season, and adjusting our referencing criteria to allow guarantor-based checks instead of referencing students directly.”
Reposit operates a deposit alternative model where tenants pay a non-refundable fee equal to one week’s rent instead of the traditional five-week deposit. Tenants must pass standard referencing or provide a UK guarantor.
Its insurance-backed system guarantees payment to landlords and agents in cases of tenant default, while tenants remain liable for any charges incurred. Disputes are resolved by an independent adjudicator, typically within 14 days.
