What is a rental holding deposit agreement?
When a landlord stops marketing a property for one applicant, both sides take a risk. A holding deposit agreement records the amount paid, how long the property is held and exactly when the deposit is refunded, kept or credited to rent.
This template sets out the proposed rent, start date and term, what still has to happen (references, checks, signing the lease), the deadline, the refund cases and the limited cases where the landlord may keep the deposit, with a written reason. Many places cap holding deposits and set deadlines, so the amount is yours to fill in and the agreement says local rules override it.
- Best for
- Reserving a residential rental between application and lease signing
- Signed by
- Landlord or letting agent, and the applicant
- On signing the lease
- Credited to first rent, credited to the security deposit, or refunded
- Length
- 2 pages
When to Use a rental holding deposit agreement
- A popular flat with several applicants
- An applicant waiting on references from a previous landlord
- Holding a property for a tenant relocating from abroad
- Letting agents standardising their reservation process
- Making refund rules clear before any money changes hands
What You Fill In
15 blanks, then the name and email of each person who signs: landlord, applicant.
1 The rental
- Date of this agreement*
- Landlord or letting agent*
- Applicant name(s)*
- Address of the rental*
- Currency*
- Agreed rent*
- Rent is paid* per month · per week · every two weeks
- Intended lease start date*
- Intended lease term*
2 The deposit
- Holding deposit*
- Lease must be signed by*
- If the lease is signed* credited towards the first rent payment · credited towards the security deposit under the lease · refunded to the Applicant within 7 days of the lease being signed
- What still has to happen*
- Days to refund if the deposit is returned*
- Governing law*
3 Who signs
- Landlord signature and date · The landlord or letting agent taking the holding deposit.
- Applicant signature and date · The prospective tenant paying the holding deposit.
What the rental holding deposit agreement Covers
- The proposed tenancy
- Holding deposit
- When the Holding Deposit is refunded
- When the Landlord may keep it
- Fair treatment
- General
Using the rental holding deposit agreement, step by step
1 Describe the rental
Enter the landlord, applicant, address, agreed rent, start date and term.
2 Set the deposit
Enter the holding deposit and the deadline for signing the lease, and choose what happens to it when the lease is signed.
3 List what's outstanding
Say what still has to happen — references, credit check, identity checks — and the refund period.
4 Send for signature
Add the governing law and send it to the applicant before taking payment.
Tips Before You Send It
- Check local law before choosing an amount — some places cap holding deposits at a few days' or a week's rent.
- Sign this before taking the money, so the refund rules are agreed in advance.
- If you keep the deposit, tell the applicant why in writing within any time the law sets.
- Keep the applicant's documents secure and only for the application — VergeHR stores the signed agreement in Files.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Rental holding deposit agreement: frequently asked questions
When must the holding deposit be refunded?
If the landlord decides not to go ahead (other than for the listed reasons), tries to change the main terms, doesn't get the lease ready in time, or the law requires it.
When can the landlord keep it?
As far as the law allows: if the applicant withdraws, gave false or misleading information that matters, or fails to take reasonable steps to sign by the deadline. Where the law limits retention to actual loss, the balance is refunded.
Is a holding deposit the same as a security deposit?
No. The agreement says it is neither rent nor a security deposit, though you can choose to credit it to either once the lease is signed.
Is an e-signed holding deposit agreement valid?
Electronic signatures are generally accepted for ordinary agreements like a holding deposit agreement in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada, though local rules can add requirements. VergeHR keeps an audit trail and a Certificate of Completion with the signed PDF.