Holding Deposit (Holding Fee) – Terms & Conditions
To reserve a property, a holding deposit is required. This allows us to take the property off the market while we carry out referencing and prepare your tenancy.
What is a Holding Deposit?
A holding deposit is a payment made to secure a property while your application is being processed.
- The holding deposit is equal to 1 week’s rent, as set out under the Tenant Fees Act 2019
- Once paid, the property will be reserved for you, subject to satisfactory checks
What Happens Next?
After payment is received:
- The property will be removed from the market
- Referencing and affordability checks will begin
- You will be asked to provide relevant documentation within a reasonable timeframe
Deadline for Agreement
You will have 15 days (or another agreed timeframe in writing) to:
- Complete referencing
- Sign the tenancy agreement
This is known as the “deadline for agreement.”
When is the Holding Deposit Refunded?
Your holding deposit will be:
- Deducted from your first month’s rent, or
- Returned to you if the landlord decides not to proceed
When May the Holding Deposit Be Retained?
The holding deposit may be retained if:
- You withdraw your application
- You fail to take reasonable steps to enter into the tenancy within the deadline
- You provide false or misleading information which affects your suitability
- You fail a Right to Rent check
- You do not sign the tenancy agreement within the agreed timeframe
Important Notes
- The holding deposit does not guarantee a tenancy until all checks are completed and contracts are signed
- Only one holding deposit is taken per property at any one time
- We will act fairly and in line with all relevant legislation
Our Commitment
At Rooms to Let North East, we aim to make the process:
- Clear and transparent
- Fair for both tenants and landlords
- Fully compliant with current legislation
If a holding deposit is retained, we will provide written confirmation outlining the reasons in line with legal requirements.
