When a tenant shows interest in a property, landlords and agents will want, or need, to carry out certain checks before a tenancy can start.
This often means that the tenant(s) will be asked to pay a holding deposit, to reserve the property.
This guide is a summary of the holding deposit rules, which can be found in the Tenant Fees Act 2019 and its detailed guide [here]
| Before taking a holding deposit: |
Do not: |
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| provide tenants with: |
- take one week's rent from each prospective joint tenant for the same property |
| - a draft tenancy agreement |
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- take more than one holding deposit for the same property at the same time |
| - a holding deposit agreement |
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- unlawfully discriminate against a tenant based on their race, sex, pregnancy, marital status, family responsibilities, breastfeeding, age, disability, sexual orientation, gender identity or intersex status |
| - clear information about why you are asking for a holding deposit, the amount and in what circumstances it may not be refunded |
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| Clear information will set out: |
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| the holding deposit amount |
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| the rent agreed |
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| the specific date for starting the tenancy (the deadline for agreement) |
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| other material terms that are agreed |
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| Do: |
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| - take up to one week's rent as a holding deposit to reserve the property (taking a holding deposit is optional) |
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| - stop advertising the property once a holding deposit has been paid |
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