Holding Deposit Form (Wales)
Why take a holding deposit?
Once you have found a good candidate for a tenancy, you are then faced with the task of signing up the tenant. Taking an initial holding deposit is an excellent way of ensuring early commitment from a prospective tenant.
The NRLA Holding Deposit Form offers the following benefits:
- Happy prospective contract-holders - Use the NRLA's Holding Deposit Form and your prospective contract-holders will feel a lot happier handing over such a deposit as all terms are clearly laid out
- Secure the best contract-holders - By showing that you are a professional and trustworthy landlord, you will secure the best contract-holders
- Compliant with the fees ban - NRLA Holding Deposit Forms are designed with the Welsh fee ban in mind
Tenant fee ban rules
Since September 2019, holding deposits are limited to a maximum of one week's rent and are subject to statutory legislation on the repayment of this should the tenancy not go ahead. Landlords in Wales also have to provide specific prescribed information as part of the holding deposit application.
Once you have taken a holding deposit you have 15 days to make a decision as to whether the tenancy will go ahead. This can be extended if both parties agree to a date in the future.
Once a decision is made the landlord or agent must notify the applicant of the decision within 7 days. This should set out whether the holding deposit will be refunded in full or whether any of it will be retained.
In addition to the holding deposit form, we provide a number of template letters for our members to use to make this process as simple as possible.