Holding Deposit
- A deposit or bond retained to secure a tenancy subject to credit checking and signing a tenancy agreemnt.
- Failure of a prospective tenant to proceed to contract is likely to result in the loss of the holding deposit.
- The property cannot be offered to another whilst the holding deposit is retained and the proceedure of checks and drafting contracts is underway.
- In the event the tenant is sucessfully credit checked but still rejected by a landlord the tenant receives a full refund of the deposit.
- In the event a credit check fails for something which the tenant ought reasonably to have known the tenant is likely to lose the holding deposit.
- The holding deposit is normally deducted from the first rent or admin fee and therefore is not retained.
Published: 28 September 2015
Last Updated: 17 November 2021