The basics of holding deposits and the necessity of landlord tenant forms
It happens sometimes that the property will be rented to the tenant. But the tenant is not allowed to move inside straight away. As far as this situation is concerned the landlord has all the rights reserved to ask for the holding deposit from the tenant. The holding deposit is the money which is deposited to hold the rental property for a fixed period of time unless and until the tenant pays the first monthly installment or the security money.
During this time period the landlord will have no right to sell the property or to give the property to somebody else. Now suppose the tenant changes his mind and decides to leave the property. Then in that case according to the law the landlord can keep some amount of the holding deposit and pay back the remaining amount to the tenant.
If you want to pay the holding deposit then you as a tenant should ask some questions from yourself. Those questions are as follows:
- You should ask the landlord that the holding deposit will be credited to the first rental installment or not. If it is so then you should make sure that it is mentioned in the landlord tenant form afterwards and you should not have any hesitation in paying the security deposit at any cost.
- You should also ask the landlord that any part of the holding deposit is refundable or not. You should know the rule. As per the rule book if you will change your mind then the landlord can keep some or full holding deposit with him. This point is clearly stated in the law book.
Even if you are not on fault, then as well you can lose the holding deposit. Suppose you lose your job. Then you might not be able to pay the rental installments. This is by no mean your fault. But according to the rule book you are supposed to get no mercy.
Suppose the landlord agrees that he will pay back you the full amount of the holding deposit if you change your mind, then you should try to get the promise written on the piece of stamp paper. This is extremely important.
You should keep in mind that the holding deposit does not give the tenant the right to take the control of the property. The control is still in the hands of the landlord. However now the landlord cannot give the property to any other party on rent and he will sign the landlord tenant form with you only.