Holding DEPOSIT Form compliant renters rights *

2. Using the Holding Deposit against rent This is permitted where the Prospective Tenant provides written consent. The Landlord or Agent is not permitted to tell the Tenant that the Holding Deposit can only be used against the Deposit. The Tenant must be allowed to choose whether it is applied toward the Tenancy Deposit or toward the first month's rent. 3. The critical distinction - when it becomes rent The Holding Deposit is not rent when it is paid. It must not be treated as early rent and must not be required as rent before the due date. If the Tenant consents to its use against rent, it only transitions to the rent column on the tenancy commencement date or the first contractual rent due date, whichever is later. Until that time it remains a Holding Deposit and not rent. 4. Why this does not breach tenant protection rules Using a Holding Deposit toward rent does not breach tenant protection rules if handled correctly. It does not amount to demanding rent early because the money is not treated as rent until the correct contractual point. Consent and timing are both essential.

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