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To receive a security deposit from a potential tenant, the landlord must provide the following: You could lose your deposit if you decide not to continue, or not to take reasonable steps to agree on a tenancy before the deadline. If you have paid the deposit, the rental is deemed to have been agreed subject to reference. The landlord should not work with other tenants and cannot accept other deposits. If you withdraw, the owner/agent can claim the deposit as lost. In this scenario, the tenant does not receive the deposit. It goes to the owner or agent to cover them against the loss of time and money. Unlike deposits, there is currently no legal obligation to protect holding deposits. Therefore, the money is usually deposited directly into the owner`s bank account and he must take reasonable steps to ensure that the money is kept safe. For this reason, a written holding deposit contract is important. We recommend that you postpone the deposit until we have confirmed that your potential tenants have completed their application forms.

You can only keep the security deposit for a limited time, so it`s important that everything is ready for the clock to start those 15 days. The “deadline for the agreement” is 15 days after receipt of the deposit. You must enter into a rental agreement with the tenant before the expiry of the contractual period, i.e. You must sign the rental agreement within 14 days of receipt of the security deposit. You can agree to extend/shorten the deadline for the agreement with the tenant, but you must do so in writing. On day 7, when the tenant`s references are not yet complete (3-5 working days is the standard deadline for references. Some employers/owners may take much longer to respond) and/or the contract has not yet been signed, you must request written confirmation from the applicant that they agree to extend the time limit and that you keep the security deposit longer. At an appropriate time and before the deadline /extension, we recommend that you ask the applicant for their written consent that you can keep the deposit until the start of the rental, offset either by the first month`s rent or by the deposit. If you do not agree, you must receive the deposit within 7 days of the deadline / extension of the deadline.

We strongly recommend that you always leave a deposit to make sure your potential tenant is serious about your property. With the new prohibition on tenant fees, if no security deposit is paid, the tenant is in no way financially bound to your property. .