A holding deposit is a small deposit which is paid on application to secure a property. It is to allow the landlord or agent to check the suitability of a tenant. The holding deposit you are asked to pay is the equivalent of one week’s rent. On receiving your holding deposit, you will be given the right of first refusal on the property that you have applied to rent.
Deadline for Agreement
Should your tenancy application be successful, you will be expected to enter into a tenancy agreement within fifteen days from the date on which the holding deposit has been received. This is known as the deadline for agreement. Should a tenancy agreement not be entered into within fifteen days from application, you will lose your right to first refusal, the property will be introduced to others and your holding deposit may be retained.
False or Misleading Information
When applying for a tenancy, if false or misleading information has been given, we may retain the holding deposit.
Failure to Enter into a Tenancy Agreement
If after applying to rent a property, a tenant should choose not to enter a tenancy agreement or fail take reasonable steps to enter a tenancy agreement, we may retain the holding deposit.
Entering into a Tenancy Agreement
On entering into a tenancy agreement, the holding deposit paid will be put towards the first payment of rent or the security deposit.
Deposits may vary depending on credit history and personal circumstances.
a) A standard security deposit equal to one month’s rent will be required on taking tenancy of an unfurnished property.
b) A standard deposit equal to one and a half month’s rent will be required on taking tenancy of a furnished property.
c) An additional deposit equal to one half of a month’s rent may be required where the tenant has been given written authorisation to keep a pet at the property.
During the Tenancy
During the tenancy rent should be paid to Northwood by standing order. A tenant is responsible to pay for all gas and electricity consumed and the amount of the water and sewerage rate charged; the amount of all charges made for the use of a telephone, installation of satellite receiving equipment and the connection of cable and/or broadband services. A tenant is responsible to register with the local authority for the payment of council tax and to acquire an appropriate television licence.
Payment in Default
A payment in default is a payment that you may be asked to pay arising from a breach of the tenancy agreement, whether late payment of rent or some other breach. There are occasions where it would be unfair for the landlord or agent to be responsible for meeting the cost as a result of the actions of the tenant.
This office is a member of Client Money Protect CMP002663 having Client Money Protection for landlords and tenants. Northwood Wrexham Limited is a member of The Property Ombudsman Scheme D01344. To view our certificate, please see below.