Deposit protection

Can someone please clarify, when the tenant pays the holding deposit it details this goes toward their first months rent. How do we keep a deposit back until they move out, as protection should the flat be damaged in any way?

These are two different deposits. A deposit of 5 wks rent maximum is what should be put into a scheme in case of damage Do NOT hold this money yourself

Thanks Colin. I’m used to the deposit being organised via the letting agent and putting into a scheme. I’m just wondering how it works on Openrent, do we organise this into a deposit scheme or does the site organise it when they agree to take the property?

Hi Rachel14 Personally I put deposits into a scheme myself. No doubt on Monday one of openrent staff will contact you to help

Hi Rachel, there are two different deposits that are taken during the tenancy creation process.

The holding deposit is paid by the tenant to make a formal offer to rent the property. It is capped at one week’s rent. It does not need to be protected in a deposit protection scheme (OpenRent will hold it). If the tenancy goes ahead, then the money is put towards the first month’s rent.

The tenancy deposit is paid before move-in and is capped at five week’s rent. It needs to be protected in a government-approved deposit protection scheme and the tenant needs to be served the statutory prescribed information on how their deposit is being protected. OpenRent does all of this for you if you use our Rent Now service. This is the money from which the landlord can make claims for damage to the property or unpaid rent.

Lots more info here: the difference between holding deposits and tenancy deposits.