OpenRent Deposit Free is an alternative to traditional cash tenancy deposits, designed to reduce upfront moving costs for tenants while giving landlords enhanced protection.
Instead of paying a lump-sum cash deposit (typically capped at five weeks’ rent), tenants pay a small, fixed monthly fee for the duration of their tenancy. Landlords receive up to eight weeks of protection under OpenRent's Deposit Free Guarantee, backed by independent dispute resolution with mydeposits.
How the Monthly Fee Works
- Calculated at 2.25%: The monthly fee is set at 2.25% of the initial monthly rent, rounded up to the nearest whole pound.
- Minimum and Maximum Caps: The fee is strictly subject to a minimum of £20 per month and a maximum of £50 per month.
- Permanently Fixed: The fee is fixed at the start of the tenancy and will never increase—even if your rent increases later or you renew your contract.
- Household Split: The fee covers the entire property. While collected as a single recurring payment from your saved card on OpenRent, the cost can be split equally among housemates.
- Non-Refundable: The monthly fee is an ongoing service fee, not an escrow deposit. It runs until the tenancy ends and is not returned at check-out.
What are the Benefits?
For Tenants
- Keep Your Savings: Move into your new home without locking up thousands of pounds in a cash deposit.
- Fair Check-Out: Your landlord must submit dated evidence for any end-of-tenancy Charges. You can review, accept, negotiate, or dispute every item before anything is paid.
- Fast Independent Adjudication: Disputed Charges are handled by mydeposits, with an accelerated dispute process once evidence is submitted.
- No Pressure: Deposit Free is completely optional. If you prefer a traditional refundable cash deposit, you can opt out at any time during set-up.
For Landlords
- Up to 8 Weeks of Cover: Landlords receive up to eight weeks' rent guaranteed under the Deposit Free Guarantee for unpaid rent, cleaning, or damage—compared to the legal maximum of five weeks on cash deposits.
- 100% Free for Landlords: There are no set-up fees, membership costs, or renewal charges for landlords.
- Direct Payouts: If a tenant fails to pay agreed or awarded Charges (£100 minimum), OpenRent pays the landlord directly within seven working days of our evidence review.
- Fast Disputes: In the event of a disagreement, mydeposits provides independent adjudication with decisions typically returned within 28 days of final evidence submission.
Tenant Responsibilities
Using Deposit Free does not exempt tenants from their standard tenancy obligations. Tenants remain jointly and legally responsible for paying rent in full, maintaining the property, and reimbursing valid end-of-tenancy Charges. If Charges are agreed or awarded by an adjudicator, the tenant is required to pay them.