Everything You Need to Know About Holding Deposits.
Finding the right rental apartment can be stressful and time-consuming. After all, there are so many factors that you need to consider if you want to get that one-of-a-kind rental you always dreamed of. From determining your budget and choosing an ideal neighbor to providing documents to your landlord to convince him or her that you’re a good candidate, the list goes on. However, if you live in or around Kelowna, finding rental apartments is even easier. At Homefinders, we provide the best selection of house rentals in Kelowna. So, whether you need a studio apartment, duplex, or triplex, we have got you covered.
When you decide to rent a property, you must know about the different types of payments you may have to pay as a renter. From an application fee and a security deposit to the rent for the next month, there’s a good amount of expenses you need to consider. However, some landlords require you to pay a holding deposit as well. Want to know what a holding deposit is and what it entails? Well, keep reading the blog till the end.
- What is a holding deposit?
A holding deposit is a specialized type of deposit that tenants need to pay landlords to hold the property until the tenants can move in. It demonstrates the tenant’s commitment to the property and needs to be paid before paying a security deposit or signing a lease. However, it’s advisable to make a separate agreement for the holding deposit that will specifically specify the purpose of the deposit. Why so? Well, let’s say, after visiting numerous Kelowna rental properties, you have finally found the right property for you. But you can’t move in till next month. In this case, the agreement will stipulate all the terms and conditions regarding the refund of the holding deposit.
- How much is a holding deposit?
The holding deposit is typically less than a security deposit and is equal to one week’s rent for the unit you want to reserve. Some landlords may say that the rate depends on the location and the market’s competitiveness, but remember that the holding deposit is capped by law. Hence, no landlord is allowed to ask for more than a week’s rent.
In case you have recently moved to Kelowna and are on the lookout for affordable home rentals in Kelowna, you can contact Homefinders. We curate and list properties from various individual partners to provide you with the best rental apartments.
- When do landlords refund the holding deposit?
The landlord must refund the holding deposit within 7 days if:
- The landlord breaks the agreement and rents the unit out to some other prospective tenant.
- Once the tenant signs the tenancy agreement and pays the security deposit.
However, some landlords don’t return the holding deposit directly. They may roll it into your other costs like the security deposit or the first month’s rent.
- What happens if the tenant withdraws the application?
In case the tenant withdraws his or her application, the landlord is entitled to keep the holding deposit. Apart from this, there are many other scenarios when the holding deposit won’t be returned to the tenant. For instance, if the tenant provides misleading or false information during the screening or fails the “right to rent” check, the landlord can keep the holding deposit.
The Bottom Line:
The holding deposit promotes the commitment of both parties. While it serves as a tenant’s pledge to rent the unit, the landlord must take the property off the market and should not rent it to other potential tenants. Once the tenant is ready to move in, he or she can either agree to deduct it from the first month’s rent or simply ask for a refund. Now, in case you are looking for house rentals in Kelowna, you can consider getting in touch with us. At Homefinders, we have the largest selection of rental properties to help our clients find the perfect home based on their preferences and requirements. Hurry up and avail of our services today!