How to Handle Tenant Holding Deposits

Should landlords accept these kinds of holding deposits?

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• the amount of the holding deposit
• your name and that of the applicant
• the address of the rental property
• the dates you will hold the rental property vacant
• the term of the rental agreement or lease
• conditions for renting the applicant the available unit—for example, satisfactory references and credit history and full payment of first month's rent and security deposit
• what happens to the holding deposit if the applicant signs the rental agreement or lease—usually, it will be applied to the first month's rent, and
• amount of the holding deposit you will keep if the applicant doesn't sign a rental agreement or lease—for example, an amount equal to the prorated daily rent for each day the rental unit was off the market plus a small charge to cover your inconvenience.

See Every Landlord's Legal Guide for a sample Receipt and Holding Deposit Agreement form which covers each of these items.