- Holding deposits are charged at a rate of one week’s rent.
Upon a successful application & with the consent of a tenant(s) the holding deposit will be put towards the balance of the tenancy deposit.
What is a holding deposit?
A landlord or agent can take a holding deposit from a tenant to reserve a property whilst reference checks and preparation for a tenancy agreement are undertaken. A holding deposit is an amount of money paid to a landlord or letting agent to reserve a rental property before the signing of a tenancy agreement. A holding deposit is normally non-refundable if you were to withdraw your application for the tenancy. If the tenancy proceeds, the amount of the holding deposit is deducted from the rent or tenancy deposit.
Where might a tenant lose all or part of the holding deposit (in accordance with the Tenant Fees Act 2019)?
- If the tenant(s) changes their mind & decides to withdraw after paying the holding deposit, and they notify you of this before the deadline for agreement has passed, Ashburton Lettings will retain the holding fee.
- Ashburton Lettings cannot rent a property to someone who is unable to demonstrate that they have the right to rent. It’s a mandatory requirement that a tenant must provide official documentation demonstrating they have a legal right to reside in the UK. This is known as a ‘right to rent check’. If the tenant fails the right to rent check the holding deposit will be retained by Ashburton Lettings.
- Failure to provide reasonable requests for information within 15 days of holding deposit being paid. Examples of reasonable requests for information: • proof of ID: passport or any other official form of ID • proof of residence: recent bank statements, utility bills or voter registration confirmation or council tax statements • credit check • proof of income: recent bank statements, employer contact details, signed contract of employment or a letter from a tenant’s employer
- A tenant provides false or misleading information. Examples: • the tenant’s income declaration was significantly too high • the tenant has provided information which is clearly inaccurate about their income or employment • the tenant failed to disclose (when directly asked) any relevant information which later comes to your attention, such as valid County Court Judgements