In Rent Now, the holding deposit is used to cover referencing costs of £20 per reference if references are deemed necessary by the landlord.
If the Landlord Accepts the Application
If the landlord accepts the application, the remaining amount is placed towards the full deposit amount upon successful contract signing. In other words, minus any referencing cost, the tenant gets the full holding deposit back, and it is put straight towards paying the security deposit.
If the Landlord Rejects the Application
If the landlord makes a decision not to proceed (for example, the tenants fail referencing), the remaining amount is returned to the tenants.
If the Tenants Pull out of the Application
If tenants decide they no longer want the property, the remaining deposit is returned to the landlord.
Placing a holding deposit is meant to show that a tenant is serious about renting the property in question, so tenants must make sure only to place one if they definitely want to rent the property! If they pull out after placing it, or if an unreasonable amount of time has passed with no tenant contact, the money will go to the landlord to cover the costs they face by taking their property off the market in order to pursue the application.