Tenant fee Ban - How does a holding depsoit work?

Jan 25th 2019

How can we avoid applicants withdrawing once the application process has already begun?

You will be able to take up to one week’s rent as a holding deposit on the property, which you can hold for 15 days. If the agent or landlord pulls out, you have to give that holding deposit back. If the tenant’s application is successful, you’ll also have to give that back. However, if the tenant pulls out during the application process, they’ll forfeit their holding deposit. That has been done very deliberately to stop tenants applying for multiple properties and then deciding which one they’ll have.

If the tenant is dragging their feet and not responding to emails, not giving the referencing agency what they need for longer than 15 days, they would also forfeit the holding deposit. But if it’s the agent or the landlord  that’s dragging their feet and that goes beyond 15 days, they would have to give it back. (credit: The goodlandlord)