Is a landlord asking for a holding deposit before I have signed any paperwork normal?
A small holding deposit to take a property off the market during referencing can be legitimate, but the rules on how much and when vary by country, and fraud is common.
Last reviewed: 1 June 2026
Explanation
Holding deposits are used in rental markets to reserve a property while referencing checks are completed. In the UK a holding deposit is capped at one week's rent and must be refunded unless you withdraw, provide false information, or fail referencing. Similar rules apply in many other jurisdictions. The fraudulent version involves a 'landlord' who collects holding deposits from multiple prospective tenants simultaneously, then disappears. Warning signs include a landlord who will not let you see the property first, urgency about paying before other applicants take it, and a deposit request exceeding local legal limits. Always get the landlord's full name and verify they have the right to let the property before paying any holding deposit.
Common red flags
- Holding deposit requested before you have viewed the property
- Amount exceeds local legal limits
- Landlord communicates only by text and cannot be verified
- Urgency — another applicant is ready to pay right now
- No receipt or written agreement provided for the deposit
What to do now
- View the property before paying any deposit
- Verify the landlord's identity and ownership of the property
- Get a written receipt specifying the holding deposit terms and refund conditions
- Report suspected rental fraud to the classified-ad platform and local housing authority
Frequently asked questions
Can I get a holding deposit back if I decide not to rent the property?
Rules vary by country. In the UK, if you decide not to proceed you typically forfeit the holding deposit unless the landlord breaches the terms. Always get the refund conditions in writing.