Rent is just the beginning when it comes to student accommodation costs. Many students are caught off guard by additional expenses that quickly add up, making budgeting essential. To avoid financial surprises, here’s a breakdown of hidden costs you should plan for when renting as a student. 

1. Deposits and upfront costs 

Before moving in, most landlords and letting agents require an upfront payment: 

• Tenancy deposit – Usually equivalent to five weeks’ rent, this is held in a government-approved deposit protection scheme and returned at the end of your tenancy, provided there’s no damage or unpaid rent. 

• Holding deposit – Often one week’s rent, this secures the property while references and paperwork are processed. It should be deducted from your first rent payment if the tenancy goes ahead. 

It’s important to check the terms of your deposit protection scheme and take photos of the property when you move in to avoid disputes later. 

2. Guarantor requirements and fees 

Many landlords require a UK-based guarantor (usually a parent or guardian) who agrees to cover rent if you can’t pay. If you don’t have one: 

• Some landlords demand several months’ rent upfront instead. 

• Some agencies and providers charge for a guarantor service, which can cost around £300 per year. 

So, if you’re an international student, find out about guarantor scheme in your university to help you meet requirements. 

3. Utility bills and council tax 

Some student rentals include bills, but many don’t. So you’ll need to budget for: 

• Electricity, gas, and water – Monthly costs vary but expect to pay £50–£80 per person in shared accommodation. 

• Internet and TV licence – Broadband can cost £25–£40 per month, and if you watch live TV or BBC iPlayer, you’ll need a £169.50 TV licence. 

• Council tax – Full-time students are exempt, but you must register for a council tax exemption to avoid being billed. 

Tip: Look for properties with bills included or use bill-splitting services to make managing payments easier. 

4. Rental insurance 

Many landlords require tenants to take out contents insurance to protect against theft or accidental damage. Basic student insurance policies start at around £10 per month but can vary based on coverage. 

Tip: Check if your parents' home insurance covers you before purchasing a separate policy. 

5. Agency and move-in fees 

Although agency fees are banned in England and Scotland, you may still encounter: 

• Key replacement charges – Some landlords charge for lost keys or lock changes. 

• Cleaning fees – Some tenancies require professional cleaning before moving out, costing £50–£150. 

• Furniture costs – If the property is unfurnished or missing essentials like a desk or chair, you may need to buy these yourself. 

Tip: Always read your tenancy agreement carefully to understand potential extra costs. 

6. Travel and commuting expenses 

If your accommodation isn’t close to campus, consider: 

• Public transport costs – A student travel pass can save money if you commute regularly. 

• Cycling expenses – Investing in a bike, lock, and helmet can be cost-effective in the long run. 

Tip: Compare accommodation costs vs. commuting costs—it may be cheaper to live closer to university even if rent is higher. 

While rent is the biggest cost, the extras can quickly add up. Planning ahead for these hidden expenses will help you manage your student budget effectively and avoid unexpected financial stress. 

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