Holding Deposit Form (Wales)
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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 tenant - Use the NRLA's Holding Deposit Form and your prospective tenant will feel a lot happier handing over such a deposit as all terms are clearly laid out
- Secure the best tenants - By showing that you are a professional and trustworthy landlord, you will secure the best tenants
- Compliant with the tenant fees ban - NRLA Holding Deposit Forms are designed with the tenant 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.
Last Updated: 29/09/2020
The NRLA's comprehensive guide to the tenant fee ban in Wales.
Initial Holding Deposit Form - Wales
How do I comply?
There is a lot of information to provide to prospective tenants. However most of it can be supplied through giving the following prior to receiving the holding deposit:
- the NRLA Initial Holding Deposit Form for Wales
- a draft copy of the tenancy agreement with the proposed terms completed
- a tenancy application form to set out what you need to be able to check the suitability of your tenant
If you require a guarantor, you should also inform the tenant about what would be considered a suitable guarantor. Provide a draft guarantor form to them as well.