New figures from deposit alternative provider Reposit show that, on average, student tenancies end with lower financial charges compared to the broader private rented sector (PRS).
The data from 2024 revealed that average end-of-tenancy charges – including arrears, cleaning, and damages – were significantly lower in the student rental market. The average charge was £788, compared to £1,131 in the wider PRS. Specifically, average damage costs were £472 in student lets, versus £563 for other renters but £283 was the average cleaning charge for students which is higher than the average of £220 incurred outside the sector.
Although the average overall end of tenancy charge among students was lower in value than the wider PRS, these charges occurred more frequently among student renters with 63% of tenancies ending in a charge compared to 48% elsewhere. Cleaning was the most common reason for charges among student tenants, followed by damages and then arrears – a pattern that mirrors the same trend seen in the wider private rented sector.
Fifty-four per cent of student tenancies ended with a cleaning charge in 2024 compared to 34% of non-student tenancies, while damage rates were broadly similar at 29% in the student sector and 24% outside of it.
These elevated rates in the student sector show the importance of investing in efficient software and streamlined processes to support end-of-tenancy management and reduce administrative burdens.
Gurman Bains, Head of New Business at Reposit, said: “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.
“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 on a deposit alternative model where residents pay one week’s rent as a non-refundable fee rather than providing five weeks’ rent upfront. All tenants must pass referencing or provide a UK guarantor.
Reposit’s insurance-backed structure guarantees landlords and agents payment in the event of a tenant default. Tenants remain liable for any charges, with disputes handled by an independent resolution service within 14 days.
