HOLDING DEPOSIT AND SECURITY DEPOSIT
Once you've seen the property you want, to reserve it and take it off the market you need to pay a holding deposit of one weeks rent.
A holding deposit is not the same as a security deposit - Once we have accepted your application and you have provided all the required documentation in a timely manner, we will then credit your holding deposit to your first rent instalment. Should you not be accepted or you decide not to proceed with the tenancy agreement - you will not be refunded you holding deposit.
WHAT IS HOLDING DEPOSIT?
You pay a holding deposit if you've agreed to take a property but haven't yet signed the tenancy agreement. By paying a holding deposit you agree that we will cease to market this property to let to other prospective tenants. The property is to be let to You, subject to contract and satisfactory checks and references on You and Your Guarantor.
The Holding Deposit is intended to compensate us for any abortive administration costs and/or other losses incurred resulting from your application for this tenancy and the removal of the property from the market. This may include loss of rent.
Before you pay a holding deposit make sure you're aware of what will happen should your application be rejected, you do not provide documentation in a timely manner or you decide you no longer want to rent the property:
1. You do not provide requested documentation in the time requested to enable us to conduct credit checks, create a ASTA or guarantor mandate form.
We will retain your holding deposit in its entirely and you will not be entitled to a refund
2. If you or your Guarantor fail a credit check do you get the deposit back?
You will be not be refunded your holding deposit
3. If the landlord decides not to go ahead with the tenancy?
You will be entitled to a full refund of the holding deposit AND the administration fee if the landlord or agent decides not to go ahead with the tenancy for any reason whatsoever - this excludes any of the points 1 mentioned above and failure to make any payments due before your move in date.
Please note - a holding deposit is not a security deposit. You will be required to pay a security deposit unless your property is marketed otherwise.
The payment of a security deposit is used as security against damage or getting into rent arrears.
A tenancy deposit protection scheme will pay back as much of your deposit as you are entitled to at the end of the tenancy. It also provides an alternative dispute resolution service that can be used if there is a disagreement about the deposit at the end of the tenancy.