When you decide to rent an Apartment there is a good amount of money to pay to keep on your mind, From an actual rent for the next month to a security deposit to an application fee-all this quickly adds up. And you might also find out that your potential landlord requires you to pay a holding deposit. Is it legal for a landlord to require a holding deposit? How much can they ask for? Finally, what exactly a holding deposit is? You can find answers to all these questions and much more in the following article.
Holding Deposit
A holding deposit is an application deposit is a certain sum the landlord can ask you to pay around the time you apply for the apartment to assure you’re serious about this property. Before paying a holding deposit to your potential property manager, make sure to check tenant-landlord laws in your state regarding this issue. There, you can double-check the specific requirements for holding deposits, if the landlord is permitted to keep an application deposit, and under which conditions.
Rent Deposit
Holding deposit can only be used until you sign a lease, after you sign the lease this holding goes to security deposit. The landlord requires a security deposit when the parties sign the lease and retains it until the tenant moves out. It serves to protect the landlord against losses at the end of the tenancy if the renter owes rent or causes damages beyond wear and tear. Usually, the security deposit amount is between one or two months’ rent-depending on your state laws and landlord’s preferences.
