1. Purpose of the Holding Deposit

1.1. The holding deposit is paid by the prospective tenant(s) to secure their interest in the property during the application process. It ensures that the property is taken off the market and reserved exclusively for the prospective tenant(s) while reference checks and other pre-tenancy procedures are conducted.

1.2. The payment of a holding deposit does not constitute a guarantee of tenancy. The tenancy will only be confirmed once all necessary checks are completed, and both parties have signed the tenancy agreement.

2. Amount of Holding Deposit

2.1. The holding deposit amount will not exceed one week’s rent of the property being rented.

2.2 We may request rent in advance for individuals who are unable to provide a UK guarantor and are registered students in the UK.

3. Non-Refundable Circumstances

3.1. The holding deposit is non-refundable if the prospective tenant(s) decide to withdraw from the tenancy process after the holding deposit has been paid.

3.2. The holding deposit will also be non-refundable if the prospective tenant(s) fail to take reasonable steps to progress the tenancy, such as:
Not providing necessary information for reference checks within a reasonable timeframe.
Providing false or misleading information during the application process.
Failing to sign the tenancy agreement by the agreed date.

4. Refundable Circumstances

4.1. The holding deposit will be fully refunded in the following circumstances:

If the landlord or managing agent decides not to proceed with the tenancy for reasons unrelated to the tenant(s), such as failing reference checks due to reasons not disclosed by the tenant(s).
If the tenancy cannot proceed due to reasons attributable to the landlord or managing agent, such as the property being withdrawn from the market.
Office Tel: 0207 117 2671 Email: info@psm-estates.co.uk
Address : 76 Cambridge Heath Road E1 5QJ

4.2. The holding deposit will also be refunded if the landlord or managing agent does not enter into the tenancy agreement before the “deadline for agreement,” which is 15 calendar days from receipt of the holding deposit, unless an alternative date has been agreed in writing.

5. Application Process

5.1. After payment of the holding deposit, the landlord or managing agent will:

Conduct reference checks, including credit checks, right to rent checks, and obtaining references from employers and previous landlords, if applicable.
Discuss the terms of the tenancy, including the draft tenancy agreement, with the prospective tenant(s).

5.2. The prospective tenant(s) must provide all necessary documentation and information required for the reference checks and the tenancy agreement.

6. Agreement to Terms

6.1. By paying the holding deposit, the prospective tenant(s) acknowledge and agree to these terms and conditions.

6.2. These terms and conditions do not replace or supersede the tenancy agreement, which must be signed and agreed upon by both parties before the tenancy begins.

7. Deposit and Notice Period Policy

7.1. Deposit Forfeiture: Deposits will be forfeited if a 2 months’ notice is not provided before the end of the contract.

7.2. Rolling Contract: After the initial contract term ends, the agreement will automatically transition into a rolling contract.

7.3. All Terms & Conditions will continue to apply during the rolling contract period.

7.4 The contract will renew on a rolling basis until either party provides the required notice.

8. Disputes

8.1. Any disputes regarding the holding deposit, will be addressed in accordance with relevant UK housing regulations and laws.

8.2. While prospective tenants have the right to dispute deductions made from their deposit, such disputes must be supported by valid and reasonable evidence.

8.3. Deductions may be made from the deposit to cover costs resulting from breaches of the tenancy agreement, such as not providing two months’ notice, property damage, cleaning, or unpaid rent. In some cases, the entire deposit may be withheld.