Tenant tips for holding deposit

By Tenant

Holding deposit is the amount of money a tenant pays the landlord to take a rental unit off the market up until the time the tenant moves in. Typically this happens when a tenant sees a prospective unit he likes but is unable to move in right away. In order to secure the unit for the tenant, he must pay a certain amount as a holding deposit and an agreement is made between the landlord and tenant to not let other tenants to move in to the apartment.

Listed below is general information that tenants must know before handing out a holding deposit.
The landlord must provide these things in order for them to take holding deposit from a tenant:
• Upon payment of the holding deposit, the landlord must provide a receipt.
• Conditions with regards to the retention of the holding deposit must be written down and be signed by the tenant.

By the time the tenant moves in the holding deposit will be made as the tenant’s security deposit or his first month’s rent depending on what you and the tenant decided. However, if the tenant changes his mind and decided not to move in because he found another apartment that is much better or for some other reason the landlord has the right to keep the holding deposit given that their state allows the landlord to keep the holding deposit.
Before paying any amount of money to the landlord, tenants must first know and understand how holding deposits work. It is really very important that tenants have basic knowledge of it for when the time comes that you decided not to pursue with your application for the rental unit you do not have to go through all the hassles of trying to get it back from the landlord.

Edited on: Thursday, April 11th, 2013 2:44 am

15 Responses to “Tenant tips for holding deposit”

My response: (We welcome stories, examples, explanations, answers and a touch of your personality)
 

Latrice

April 11th, 2013 3:00 am

There are states that allow tenants to get their holding deposits back once they decided not to move in that is if they changed their mind within three days after they pay the holding deposit.


Lauren

April 11th, 2013 11:20 am

I hate to be rude but why the hell would I give back a holding deposit when my tenant took up 2 weeks of my time before deciding not to move in because of some alleged financial reason.


Jerome

April 11th, 2013 7:40 pm

Don’t they know how hard it is to find someone to rent my apartment?


Lourie

April 12th, 2013 4:00 am

With today’s economy everyone should fend for themselves. If you pay for a holding deposit then decided not to move in don’t expect to get your money back.


Ok

April 12th, 2013 12:20 pm

If we


Jack

April 12th, 2013 8:40 pm

The main purpose of the holding deposit is for the landlord to take the property off the market for the tenant.


John

April 13th, 2013 5:00 am

I’m open for any bargain; I give back the holding deposit if the tenant pays for the days the property is off the market.


Gilda

April 13th, 2013 1:20 pm

I don’t want to go through all those small claims court hassles just for a small amount of holding deposit.


Misti

April 13th, 2013 9:40 pm

For future purposes landlords should make like a contract or an agreement stating that the holding deposit is non-refundable and let the tenant sign it.


Marisha

April 14th, 2013 6:00 am

If you are not really 100% sure of moving in then do not give holding deposit to the landlord.


Denny

April 14th, 2013 2:20 pm

Landlords should reiterate to the tenant that holding deposits are non-refundable so if ever they decided not to move in they cannot ask for the holding deposit back.


Philomena

April 14th, 2013 10:40 pm

I gave this landlord $500 as holding deposit for this one apartment. I wasn’t able to move in because someone else moved in before me; can I demand the landlord to give me back my money?


Agustina

April 15th, 2013 7:00 am

According to our state laws I am entitled to have half of the holding deposit I gave my landlord. Can I file a case with small claims court to get it?


Leann

April 15th, 2013 3:20 pm

Is it illegal for my landlord to withhold my holding deposit?


Monroe

April 15th, 2013 11:40 pm

Can I not pay for a holding deposit and just move into the apartment right away?


Close


Yes, the RPA® Can Help You!

Filing an official complaint is the nation's fastest way to solve tenant problems.

Not Ready? Learn more...

Complaint Filling Deadline  Tips/Suggestion

Need Help Filing Your Complaint?

Agents Available Mon- Fri 10am to 10pm

Recently Resolved Complaints:

See how the Nation's Rental Authority has helped thousands of tenants already!

Ask Question:

Post a new question to the RPA Tenants rights forum.

You Have Tenant Rights.
Recently Posted Questions:

Over 4,000 questions have been asked by tenants including these new posts:

Tenant Rights Categories

Popular categories about renters rights.