Holding deposite and actual deposite

Landlord Discussion
1

Historically, I ask for one month in advance and a deposite equal to one months rent. I’m assuming this is separate to the holding deposite.

Please tell me if I’m being stupid.
N

2

Hello

I was wondering the same thing. I ask for one months rent as a deposit but now i read that tenants can place a holding deposit. Im thinking the holding deposit is for taking the flat off the market and the months deposit is for use during the length of the contract incase the tenant breaks any clauses in the contract. Is that right?

thanks

Jenny

3

Yes, it is separate. A holding deposit, (max 1 weeks rent) is taken to reserve the property and either refunded or turned into rent when the tenancy goes forward. A security deposit, (max 5 weeks rent) is taken at the start of the tenancy as a security against damage or rent arrears and it has to be protected in one of the government schemes.

4

Thanks very much David thats very clear