HOLDING DEPOSITS A holding fee is paid if you agree to take the property, but have not signed the contract to take up the tenancy. Do not pay it if you’re not absolutely sure. Holding fees are typically non-refundable. Ask for a receipt and a copy of the terms and conditions. From 1 June 2019, a holding deposit can not be more than 1 week’s rent.
Amount of holding deposit
Address of the property
Proposed rent for the property
Length of contract
Tenancy start date
Requests for the landlord (e.g. cleaning, furniture)
Conditions for refunding the deposit (should you or the landlord change your mind or your references fail)
WHAT HAPPENS WHEN YOU PAY A HOLDING DEPOSIT
The landlord or agent should stop advertising the property
It is not permitted for the Landlord to take a holding deposit from more than one person for the same property at the same time
You have 15 days from when you pay a holding deposit to enter into a tenancy agreement
You can agree a different deadline with the landlord or agent in writing
If you enter into a tenancy agreement, the landlord must either:
Return your holding deposit within 7 days of agreeing the contract
Deduct it from the security deposit or the first rent payment with your permission
If the agreement is cancelled, and it’s not your fault, the holding deposit should be returned to you. If you decide you no longer want the property, you could lose your deposit.
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