Holding deposit what is it

Should anything go wrong with the rental before you move in that isn't your fault, you're entitled to your holding deposit. However, you won't get your holding deposit back if you are the one who decides against moving in. The landlord has the right to keep the deposit as compensation for the time the property was off the market while checks were taking place.

Holding and security deposits often get confused, but they're not the same. A holding deposit secures the property for you, while a security deposit is a figure that amounts to five week's worth of rent which the landlord places in a security deposit scheme. The holding deposit is automatically deducted from the first month's rent. But you won't get a security deposit back until you leave the property. Having a good understanding of holding deposits will help you navigate the rental process with more confidence.

The next time an agent asks you to pay the holding deposit, you'll know what they're talking about, safe in the knowledge that you'll get it back as long as you don't pull out of the rental agreement. Send us a note to hello movebubble. By clicking 'Send Link' you agree to the Terms of Service. Get the App. Add Your Homes. Renting Advice. Holding deposit. What happens if the rental doesn't go ahead? Unfair terms in relation to holding deposits. You can also complain to: trading standards at your council who can fine the landlord or agent and help you apply to a tribunal to get your money back a letting agent redress scheme provided the letting agent is a member such a scheme can investigate your complaint and tell the agent to apologise or compensate you.

Do holding deposits need to be protected? What happens to the holding deposit once a rental agreement has been signed? How much can I charge for a holding deposit? What information do I need to provide to the tenant? When can I keep a holding deposit? You may keep the whole or part of the holding deposit if a tenant: provides false or misleading information which you can reasonably consider when deciding to let a property fails a right to rent check withdraws from a property fails to take all reasonable steps to enter into a tenancy agreement and the landlord or agent takes all reasonable steps to do so This is not the case if you, as the landlord, acted in such a way that it would be unreasonable to expect a tenant to enter into a tenancy agreement.

Holding deposits in Scotland. Get started. Follow us. We use cookies to provide the best experience. They are not allowed 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. This is called the deadline for agreement. You can agree a different deadline with the landlord or agent in writing.

If you enter into a tenancy agreement, the landlord can either:. You could lose your holding deposit if you decide not to go ahead, or don't take reasonable steps to agree a tenancy by the deadline. Once you've signed a tenancy agreement, this will usually be legally binding unless you can end the tenancy early The landlord might be able to keep the holding deposit as part of any agreement to release you from the contract. You should normally get your holding deposit back within 7 days if either the:.

The landlord or agent can only keep your holding deposit if you:. For example, you should still get your holding deposit back if you fail a credit check, provided you told the truth about your situation.

The landlord must write to you within 7 days to explain why they are keeping the holding deposit. If they don't, they must return the holding deposit in full. Your landlord or agent can normally keep the holding deposit if you either:. You should still get your money back if you decide not to rent the property because the landlord has acted unreasonably. Because the fee can be avoided by cleaning yourself, the fee is optional and therefore permissible. Before the TFA in England, agents and some landlords would try to charge fees for all sorts.

The last kind of move-in cost is rent paid in advance. Most tenancies in the UK require the rent to be paid in advance of the rental period the rent covers. For example, if your rental period runs from the 10th of the month to the 9th of the following month, then you would need to pay your rent for the upcoming month before the 10th. Ask the OpenRent Community. Go to the OpenRent Help Centre. This article is not intended to form legal or investment advice.

Investments in property are not guaranteed and can decrease in value as well as increase. Search Articles. Exact matches only. Search in title. Search in content. Search in excerpt. Trying to set up a tenancy? OpenRent can do it all for you.