Term Of The Day: Holding Deposit
Term of the Day: Holding Deposit
Tenants who prefer to move in at a later date to a home pays landlords a holding deposit to take the home off the rental market till they do.
PropTiger Explains Holding Deposit
Holding deposit is paid to secure the unit and make sure that the landlord does not rent it to anyone else. Upon receiving the holding deposit, the landlord should give him a receipt and the terms and conditions under which the agreement would hold. If the tenant decides to move in, this holding deposit will be considered as the security deposit of the first month's rent. Otherwise, the landlord will keep that money. If the client decides not to move in if the home does not meet the requirement, the landlord is obliged to give it back promptly.
Check out PropGuide's comprehensive guide to real estate terms here.
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