A Holding Deposit serves as a refundable payment made upon reservation or booking, securing a property while the tenancy agreement is prepared and guarantor checks are conducted. During this time, the property/room will be removed from the market.
The Holding Deposit is set at £50, with the agreement that it will be refunded by deducting it from the first monthly rental payment, as per StudentTenant Lettings Limited’s Business Terms and Conditions. This refund process will be detailed in your Rental Summary upon reserving a room.
Per the TFA, if a Tenancy Agreement isn’t entered within 14 days, the Holding Deposit might be retained by the Agent/Landlord or repaid to the potential tenant, subject to specific conditions.
Tenant Suitability Criteria:
Before committing to a Holding Deposit, tenants are required to meet our Suitability Criteria, including:
- - You are an eligible higher education student over the age of 18, enrolled / enrolling at a UCAS recognised institution. We might ask for proof of this.
- You meet the UK Government’s Right To Rent criteria. You will need to show the landlord your passport and relevant documentation (Right To Rent)
- You can provide an acceptable UK guarantor (Be aged 21 or over, no CCJ or bankruptcy history and with earnings at least 3x the tenants annual rent, and be willing to be legally liable under a guarantor agreement), or if not available, agree with the landlord to pay rent in advance or by using a commercial Guarantor service.
Conditions for Holding Deposit Retention:
The Holding Deposit can only be retained by the Agent/Landlord under specific circumstances, such as when a prospective tenant:
- - provides false or misleading information which it is reasonable for a landlord or agent to take it into account (this can include the tenants action in providing it) in deciding to grant the tenancy (e.g. affects their suitability as a tenant)
- - Fails a Right to Rent check.
- - Reserves a room without permission.
- - Withdraws from a property booking*.
- - Failure to take all reasonable steps to enter into a tenancy agreement when a landlord or agent has done so*
*this does not apply where a landlord or agent imposes a requirement that breaches the ban (e.g. requiring you to pay an unlawful fee) and/or acts in such a way that it would be unreasonable to expect you to enter into a tenancy agreement with them (e.g. including unfair terms in a tenancy agreement.
Transfer of Holding Deposit to Alternative Property:
Under certain outlined circumstances, StudentTenant can allow tenants to transfer the Holding Deposit to an alternative property. However, it's important to note that under such situations, StudentTenant will not process a monetary refund of the Holding Deposit.