If the tenancy goes ahead, the holding deposit is returned to the tenant as a deduction from the first month’s rent. Tenant’s will be asked to pay their first month’s rent after they sign the tenancy agreement and pay their tenancy deposit.
If the landlord withdraws from the process and the tenancy does not go ahead, the tenant will automatically receive their full holding deposit.
If the tenant withdraws from the process after completing referencing, the holding deposit will be kept to cover the associated costs. If the tenant fails reference checks and can’t provide a guarantor to proceed, the holding deposit will not be returned to the tenant.
If the tenant cancels before the referencing stage or does not complete the reference request within 14 days, the holding deposit will be returned to the tenant.
Learn more about holding deposits: What You Should Know About Your Holding Deposit