Asked by: Aduen Thangarajreal estate real estate renting and leasing
Should I pay a holding deposit?
Last Updated: 25th February, 2020
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Thereof, do you get a holding deposit back?
A holding deposit is money paid when you've agreed to rent a property, but haven't signed a contract. Usually a holding deposit is set against a security deposit, or is refunded when you move in. If the agreement is cancelled, and it's not your fault, the holding deposit should normally be returned to you.
Secondly, is it illegal to hold a tenant's deposit? If you originally agreed your tenancy on or after 1 June 2019, it's illegal for your landlord to force you to pay a deposit of more than 5 weeks' rent (or 6 weeks' rent if your annual rent is more than £50,000). It also doesn't have to be protected if you rent privately and have an assured or protected tenancy.
In this way, how long is a holding deposit valid for?
Landlords are only allowed to keep your holding deposit for 15 days, unless you agree another deadline in writing. If the landlord has failed to accept or reject your application by the deadline, then the money must be returned to you in full.
How much should a holding deposit be?
A holding deposit will generally be equal to one weeks' rent.