What is a holding deposit?
Each tenancy is subject to a holding deposit, payable when you apply for the property. Before your application can be fully considered, you will need to pay to us a holding deposit equivalent to 1 weeks’ rent for the property. This section explains what happens to that holding deposit and the circumstances in which the deposit will / will not be refunded. It is important that you know your legal rights and accordingly you should feel free to seek independent legal advice before signing this or indeed any other document which we might put before you.
How much can I be charged?
From 1 June 2019, a holding deposit can’t be more than 1 week’s rent.
How to calculate:
Monthly rent x 12 ÷ 52 = maximum holding deposit
The Deadline for Agreement
Once we have your holding deposit, current legislation stipulates that the necessary paperwork should be completed within 15 days or such longer period as might be agreed in advance with the landlord.
What if I want to pull out of renting the property?
If at any time including during any extended period you decide not to proceed with the tenancy, then your holding deposit will be retained. By the same token, if during that period you unreasonably delay in responding to any reasonable request made by the agent, if it turns out that you have provided us with false or misleading information as part of your tenancy application, if you fail your reference check(s), or if you fail any of the checks which the Landlord is required to undertake under the Immigration Act 2014, then again your holding deposit will not be returned. It will be retained by the agent.
What happens if my tenancy is declined?
If the Landlord decides not to offer you a tenancy for reasons unconnected with the above then your deposit will be refunded within 7 days. Should you be offered, and you accept, a tenancy with our Landlord, then your holding deposit upon your confirmation can be credited to the first months’ rent or Tenancy Deposit due under that tenancy.
Written reasons will be provided within 7 days
If your holding deposit is not being repaid where, for whatever reason, your holding deposit is neither refunded nor credited against any rental liability,
What happens before I can pay a holding deposit?
Full information & check affordability
Please ensure that before applying and paying your holding deposit that you provide full, truthful information and check with the local agent regarding the affordability. The results of your references may affect our clients’ acceptance of your offer.
Immigration Act 2014
This act means checks must be carried out. You must provide us with documentation which shows you have a legal right to rent in the UK. In order to meet the legal requirements you must provide us with various documents please visit hunters.com/rent/righttorent for more info. Should the Right to Rent Checks fail by law we will be unable to allow the Tenancy to commence and the deposit paid will not be returned.
Referencing Criteria
In order to satisfy the criteria of our referencing agency your gross income should be equivalent to 2.5 times the monthly rent. If a guarantor is required, their gross income should be equivalent to 3 times the monthly rent (or share).
Concerns over credit history?
If you have any concerns over your credit history, please speak to a member of staff to see if other options are available to you. Please note that if you do not meet the referencing criteria, you may have the option to pay the rent in advance– subject to agreement by the Landlord.
Subject to satisfactory references
The completion and submission of an application does not guarantee the offer of a tenancy. This is subject to satisfactory references being provided and is at the Landlord’s discretion.
