What you Should know about Holding Deposits
A Prospective Tenants may be asked to put down a deposit to secure a property, especially in a competitive rental market.
Most landlords believe that a holding deposit is similar to an application fee and Under the Act, the only deposit that can be taken from tenants is a holding deposit. Once a holding deposit is made it is then negotiated between the prospective tenants and the lessor/agent. When a period is agreed, it should be written on the receipt for the deposit. If you do not put a date of the holding period on the receipt, the Act states that the period is 48 hours. The Landlord or agent can only take one holding deposit at any one time for the property. If the prospective tenant does not proceed with the tenancy and advises the lessor/agent within the holding period time frame, the entire holding deposit must be refunded within three days. The Landlord can not keep the holding deposit . Now if the prospective tenant or tenants fail to notify the Landlord or notify the Landlord of their decision of tenancy within the agreed holding period , this will then forfeit the prospective tenant holding deposit. When a tenant signs a tenancy agreement after paying a holding deposit, the holding deposit becomes part of the rental bond. Any amounts then become rent in advance. . Quck Rental Facts:
Fact # 1. An application fee cannot be taken for a rental property
Fact # 2. A holding deposit gives a prospective Tenant an exclusive right to enter into a Tenancy Agreement
Fact # 3. Only one holding deposit can be taken for a property at any one time
Fact # 4. If the prospective Tenant enters into the agreement, the holding deposit must be put towards the rental bond.
About the Author:
Mike Lautensack is the owner of full service company based in and around Philadelphia, PA. He advises real estate investors how to build wealth and financial security through hassle-free ownership of investment real estate with their This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation while it GUARANTEES you will never receive a late night emergency call, deal with a lengthy eviction proceeding or ever have to interact with an irate tenant
Most landlords believe that a holding deposit is similar to an application fee and Under the Act, the only deposit that can be taken from tenants is a holding deposit. Once a holding deposit is made it is then negotiated between the prospective tenants and the lessor/agent. When a period is agreed, it should be written on the receipt for the deposit. If you do not put a date of the holding period on the receipt, the Act states that the period is 48 hours. The Landlord or agent can only take one holding deposit at any one time for the property. If the prospective tenant does not proceed with the tenancy and advises the lessor/agent within the holding period time frame, the entire holding deposit must be refunded within three days. The Landlord can not keep the holding deposit . Now if the prospective tenant or tenants fail to notify the Landlord or notify the Landlord of their decision of tenancy within the agreed holding period , this will then forfeit the prospective tenant holding deposit. When a tenant signs a tenancy agreement after paying a holding deposit, the holding deposit becomes part of the rental bond. Any amounts then become rent in advance. . Quck Rental Facts:
Fact # 1. An application fee cannot be taken for a rental property
Fact # 2. A holding deposit gives a prospective Tenant an exclusive right to enter into a Tenancy Agreement
Fact # 3. Only one holding deposit can be taken for a property at any one time
Fact # 4. If the prospective Tenant enters into the agreement, the holding deposit must be put towards the rental bond.
About the Author:
Mike Lautensack is the owner of full service company based in and around Philadelphia, PA. He advises real estate investors how to build wealth and financial security through hassle-free ownership of investment real estate with their This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation while it GUARANTEES you will never receive a late night emergency call, deal with a lengthy eviction proceeding or ever have to interact with an irate tenant
Comments (3)
Barbie Lynn, about 8 years ago
Sorry for the late reply, but I'm just seeing this now (your reply came up in a search). In the state of PA, your deposit cannot be more than 2 months rent for the first year of your rental ( PA 68 P.S. Statute 250.511). If you've paid the first month's rent and 2 months rental deposit, I can't imagine they would be able to keep you from moving in. If they did take it you should be able to still pursue the landlord / property manager before a magistrate and obtain at least anything over $1,700. You should show up with any documenting proof of monies paid the landlord / property manager, anything saying they were denying your lease.
Please note, I'm not a lawyer, but I hope this information points you in the right direction if it's still of any help.
Zachary Paschke, over 6 years ago
Barbie Lynn, about 8 years ago