The landlord will require the tenant to sign a letter of offer and pay a holding deposit to indicate initial acceptance. The letter of offer should always be subject to contract.
The holding deposit is paid as a sign of good intent whilst awaiting the preparation and completion of the tenancy agreement, and is usually the equivalent of one month's rental. The holding deposit shall become the first month's rental if the tenancy agreement is signed and shall be refunded in full if the tenancy agreement is not signed. Please ensure that your letter of offer does not state otherwise before signing. However, the landlord may insist on a non-refundable deposit. This is acceptable when the terms and conditions on the draft tenancy agreement are agreed by both parties.
