Holding Deposit

What is a holding deposit? 

A holding deposit is an amount of money paid by a potential tenant to reserve a rental property before officially signing the lease agreement. It serves as a commitment from the tenant to rent the property and ensures that the landlord holds the property for them during the rental application process. 

How is a holding deposit different from a rental bond? 

A holding deposit is a small sum of money paid by a potential tenant to reserve a rental property before signing the lease. It's usually around less than one weeks' rent. 

On the other hand, a rental bond, or security deposit, is a larger amount paid by the tenant at the start of the lease to cover any damages or unpaid rent at the end. So, the holding deposit is about reserving the property, while the rental bond is about protecting the landlord against potential damages or unpaid rent. 

Can I get my holding deposit back if I change my mind about the property? 

If you sign a contract, it's usually a commitment you have to stick to. Unlike property purchase contracts, tenancy agreements do not have a cooling-off period. 

If you decide not to rent the place after paying a holding deposit, the landlord might keep the deposit unless they agree to release you from the contract. So, it's important to be sure before you commit to renting a property.