Your guide to holding deposits and how we manage them

When you apply to rent a property, you’re required to pay a holding deposit. This shows that you're serious about proceeding. It is equivalent to one week's rent.

How Much Is the Holding Deposit?

By law (since 1 June 2019), the holding deposit cannot be more than 1 week’s rent.

How to calculate:
Monthly Rent × 12 ÷ 52 = Maximum Holding Deposit

What Happens After Paying?

Once paid, the letting agent or landlord has 15 days to complete the tenancy paperwork. This is called the Deadline for Agreement. A longer period can be agreed in writing.

When Will the Deposit Not Be Refunded?

The holding deposit will not be returned if:

• You pull out of the rental

• You delay responding to reasonable requests

• You provide false or misleading information

• You fail reference checks

• You fail Right to Rent checks (Immigration Act 2014)

When Will the Deposit Be Refunded?

Your deposit will be refunded within 7 days if:

• The landlord declines your application for reasons not listed above

• You’re not offered the tenancy through no fault of your own

If the tenancy goes ahead, the deposit can be credited towards your first month’s rent or tenancy deposit.

Before You Pay a Holding Deposit:

Please:

• Provide full, honest information

• Check your affordability with the agent

• Be aware of your Right to Rent documentation requirements

• Ask about referencing criteria

Referencing Criteria

To pass referencing:

• Your gross income should be 2.5× monthly rent

• A guarantor (if needed) must earn 3× monthly rent

Worried About Your Credit?

If you’re concerned about your credit history, speak to us. You may be able to:

• Provide a guarantor

• Pay rent in advance (subject to landlord approval)

Important

Submitting an application does not guarantee a tenancy. It is subject to:

• Satisfactory references

• Final approval by the landlord

Still have questions? Contact Armaani Estates – we’re here to guide you.