One of the most important steps in HMO letting is to calculate the tenancy deposit correctly. Currently, the amount depends on the property’s annual rent, the type of tenancy, and the current deposit rules in England.
For most tenancies where the annual rent is below £50,000, the maximum tenancy deposit is five weeks’ rent. For annual rent between £50,000 and £100,000, the maximum rises to six weeks’ rent.
How Much Is a 5 Week Deposit?
A rent deposit calculator is not simply your monthly rent multiplied by five. You first need to convert the monthly rent into an annual figure, then calculate the weekly rent.
The formula is:
Monthly rent × 12 ÷ 52 × 5 = maximum 5 week deposit
For example, if your HMO room rents for £1,000 per month:
- Annual rent: £1,000 × 12 = £12,000
- Weekly rent: £12,000 ÷ 52 = £230.77
- Five-week deposit: £230.77 × 5 = £1,153.85
| Monthly Rent | Maximum 5-Week Deposit |
| £800 | £923.08 |
| £1,000 | £1,153.85 |
| £1,200 | £1,384.62 |
| £1,500 | £1,730.77 |
| £2,000 | £2,307.69 |
| £2,500 | £2,884.62 |
The calculator saves you from repeating these calculations for every room or property.
Does the 5 Weeks Deposit Calculator Rule Apply to Your HMO?
For most HMO landlords in England, the same deposit cap applies to an HMO tenancy as to other applicable private tenancies.
If the total annual rent for the tenancy is below £50,000, the maximum deposit is five weeks’ rent. If annual rent is between £50,000 and £100,000, the maximum is six weeks’ rent. The cap applies to the tenancy rather than giving each tenant a separate five-week allowance.
For example, where three tenants jointly rent a property at £240 per week, the maximum five-week deposit is £1,200 for the tenancy as a whole, not £1,200 from each tenant.
What Should HMO Landlords Do Before Taking a Deposit?
Calculating the deposit is only one part of preparing an HMO tenancy. Before finding the right tenant, make sure you have:
- The correct tenancy agreement.
- A clear record of the rent and deposit.
- A detailed inventory.
- Check-in photographs.
- A record of the room and communal areas.
- Required HMO licensing in place.
- Relevant safety and compliance checks completed.
Good records matter when a tenant leaves. They give you evidence of the property’s condition at the start of the tenancy and help support any legitimate deductions later.
Why HMO Inspections Matter When Managing Deposits
Regular HMO inspections help you identify maintenance issues before they become larger problems.
If a tenant leaves and a dispute arises over damage, your inventory, photographs, inspection records, and maintenance history provide useful evidence.
HMO management is therefore closely connected to deposit management.
What Happens When an HMO Tenant Leaves?
At the end of the tenancy, inspect the property against the original inventory and check-in records.
Separate normal wear and tear from damage. Record any issues, obtain evidence where repairs are needed, and follow the correct deposit process before making deductions.
In England, a landlord or letting agent must protect the deposit in a government-approved tenancy deposit scheme within 30 days of receiving it. The tenant must also receive the required information about the protection scheme and how the deposit is handled.
The approved schemes in England include the Deposit Protection Service, MyDeposits, and the Tenancy Deposit Scheme.
Holding Deposit vs Tenancy Deposit
These two payments serve different purposes. A holding deposit reserves a property while pre-tenancy checks take place. The maximum holding deposit is one week’s rent.
A tenancy fee as per gov provides security against issues such as unpaid rent or damage and is subject to the five-week or six-week cap described above.
Common Deposit Mistakes HMO Landlords Should Avoid
Common mistakes include:
- Multiplying monthly rent by five instead of converting it to weekly rent.
- Charging a separate five week deposit from every tenant on a joint tenancy.
- Forgetting the higher threshold for certain higher-rent tenancies.
- Failing to protect the deposit within 30 days.
- Starting a tenancy without a proper inventory.
- Having poor records of communal areas.
- Making deductions without evidence.
Need Help Managing Your HMO?
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With more than 10 years of experience and over 1,000 successful HMO stories, the team helps landlords manage tenant sourcing, property maintenance, compliance, and day-to-day HMO responsibilities. Explore HMO Property London’s services
FAQs
How do I calculate a 5 week rent deposit calculator?
Convert the monthly rent into annual rent, divide by 52 to find weekly rent, then multiply the weekly amount by five.
How much is a 5 week deposit on £1,000 rent?
As per 5 weeks deposit calculator, a £1,000 monthly rent produces an annual rent of £12,000. The maximum five-week deposit is £1,153.85.
Does the 5 week deposit limit apply to HMO rooms?
For an applicable HMO tenancy in England, the deposit cap follows the tenancy and annual rent rules. The arrangement should be checked carefully where rooms are let individually or tenants share one agreement.
Is a holding deposit included in the 5 week deposit?
A holding deposit is separate. It is capped at one week’s rent and, once the tenancy is agreed, it may be applied towards the tenancy deposit or first rent payment with the tenant’s agreement.
How long does a landlord have to protect a deposit?
In England, the deposit must be protected in an approved tenancy deposit scheme within 30 days of receiving it. The required deposit information must also be provided within the same period.