Holding deposit form
Why take a holding deposit?
Once you have found a good candidate for a tenancy, you are then faced with the task of signing up the tenant. Taking an initial holding deposit is an excellent way of ensuring early commitment from a prospective tenant.
The NRLA Holding Deposit Form offers the following benefits:
- Happy prospective tenant - Use the NRLA's Holding Deposit Form and your prospective tenant will feel a lot happier handing over such a deposit - as all terms are clearly laid out
- Secure the best tenants - By showing that you are a professional and trustworthy landlord, you will secure the best tenants
- Compliant with the tenant fees ban - NRLA Holding Deposit Forms are designed with the tenant fee bans in mind
Tenant fee ban and holding deposits
- Holding deposits are limited to a maximum of one week's rent and are subject to statutory legislation on the repayment of this should the tenancy not go ahead.
- Once you have taken a holding deposit you have 15 days to make a decision as to whether the tenancy will go ahead. This can be extended if both parties agree to a date in the future.
- Once a decision is made, the landlord or agent must notify the applicant of the decision within 7 days. This should set out whether the holding deposit will be refunded in full or whether any of it will be retained.