What Is the Holding Fee

A holding deposit or “holding fee” is a financial sum that a potential tenant will pay as part of their application to rent a property. The deposit secures the property for that tenant, payable to the landlord or their letting agent and can legally be no more than one week’s rent.

Do you get your holding fee back?

The money isn’t usually returned to the tenant’s bank account, however. The money is usually put towards the other move-in costs; namely, any rent paid in advance and the tenancy deposit. So in practice, tenant’s don’t actually get the holding deposit returned.

How much does a holding deposit cost?

Typically, holding deposits are cheaper than a security deposit. It is common to see a holding fee that is equivalent to one week’s rent. Generally speaking, this comes out to around $100 to $400, depending on the value of your rental and its current demand.