A holding deposit is small money with surprisingly precise rules. Five minutes spent getting the process right at the start avoids a great deal later.
The cap and the deadline
One week’s rent is the maximum. The tenancy must begin within 15 days of the deposit being paid (or a different period agreed in writing).
Refunds and retentions
In most situations the deposit is either applied against rent or refunded in full. The narrow circumstances under which it can be retained must be communicated in writing within seven days.
Document the conversation
A short email confirming the amount taken, the property in question, and the next steps creates a paper trail that resolves any later disputes in minutes.
