A holding deposit is money a landlord can ask a tenant to pay to take a unit off the market until the tenant moves in at a later time. This typically happens when a tenant sees a unit that they like but they are not able to move in right away. By paying a holding deposit, the tenant secures the unit and the landlord agrees that they will not rent the unit to any other prospective tenant. RCW 59.18.253 addresses holding deposits, and tenants can refer to this section of the Residential Landlord-Tenant Act (RLTA) for exact language of the law including the changes that took effect in July 2011.
The following tip is general information that tenants may find useful in addition to reviewing the exact language of the law.
In order to take a holding deposit from a prospective tenant, the landlord needs to provide:
- A receipt to the tenant upon payment of the holding deposit.
- A written statement of conditions in which the holding deposit may be retained.
When the tenant moves in, the landlord must apply the holding deposit towards the tenant’s security deposit amount or first month’s rent. If a tenant chooses not to move in, for example if they change their mind and find a different place to rent, the landlord can keep the holding deposit. It is important for tenants to understand how holding deposits work before paying one to a landlord, because it can be costly to have it withheld if the tenant chooses not to move in.
Before paying a holding deposit, tenants can consider the following questions:
- Have you passed the landlord’s screening criteria and background check?
- Is this a fee that the landlord is asking for to place you on a waiting list until a unit becomes available? The law dictates that the landlord cannot accept a fee for this purpose. A holding deposit is not the same as a screening fee.
- Is the landlord offering the unit only to you and asking for a holding deposit to secure the unit for you only?
- Have you reviewed the rental agreement terms, looked at the actual unit you will be renting, and know for sure you will be moving into this unit?
These questions can help tenants decide whether they should pay a holding deposit or if they may want to reconsider. For example: If a tenant has not yet been approved by the landlord after completing a background and credit check, there is no guarantee that the tenant will be accepted and offered the unit. If a landlord is asking for a holding deposit at this stage, it may be a red flag that they are not following the law. The unit should be offered and held for a particular tenant in order to accept a holding deposit.
The recent law changes to this section of the RLTA give additional rights to tenants who are receiving assistance through a tenant-based rental assistance program, such as Section 8 or other subsidized housing. When a tenant covered under such programs pays a holding deposit, they are now entitled to get the holding deposit back when the unit they are interested in fails the required inspection by the qualified party of such program. RCW 59.18.030 provides definitions as to who is considered to be a qualified inspector under these guidelines.
Landlords can no longer keep a holding deposit from a tenant due to their units not passing such inspection. Failing inspection is not considered to be the same thing as a tenant simply changing their mind about renting that particular unit. Prior to the law changes, landlords were unfairly keeping holding deposits from tenants even though it was not up to the tenant to decide whether or not they could move in. The decision was made by the program providing the assistance and completing the inspection. If the inspection is not completed within ten days, however, the landlord can notify the tenant that they will no longer be holding the unit past this time or past a longer period that the landlord and tenant may have agreed upon. In this case, the landlord must promptly return the deposit to the tenant by sending it first class mail, postage prepaid.
If a landlord fails to promptly return the holding deposit to a tenant who, based on the law, should be getting the deposit back, they can be held liable for up to twice the amount of the holding deposit. The landlord must promptly return the deposit to the tenant by sending it first class mail, postage prepaid.
If you have questions about holding deposits or other rights as a tenant, you can visit the Deposits section of our website or contact the Tenant Services Hotline at Solid Ground at 206.694.6767 (M, W & Th, 10:30 am-4:30 pm) to discuss your situation with a Tenant Counselor and for potential referrals to pro bono legal services.
The tenant information contained in this article or linked to the Solid Ground Tenant Services website is for informational purposes only. Solid Ground makes no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to its website. Solid Ground cannot act as your attorney. Solid Ground makes no representations, expressed or implied, that the information contained in or linked to its website can or will be used or interpreted in any particular way by any governmental agency or court. As legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing provided herein should be used as a substitute for the advice of competent counsel. Solid Ground Tenant Counselors offer these tenant tips as generalized information for renters. People with specific questions should call our Tenant Services hotline at 206.694.6767 Mondays, Wednesdays & Thursdays between 10:30 am and 4:30 pm.
branden says
When demanding a holding deposit, is it legally required that a landlord also fully define the contract for the apartment that is being held–including what the security deposit fee amount will be? If not, couldn’t the landlord raise the security deposit or monthly rent once the person gives him the holding deposit since the landlord now ‘has it in the bag’ so to speak?
Kayley says
Hi I recently went to go look at an apartment and I paid the 150 holding fee for the apartment and we didn’t follow through because the apartment wasn’t the right one we wanted so now we have called and told them that we will not be doing it and we asked for our holding fee back and they won’t by law do they have to give us our holding deposit back ?
Liz Reed Hawk says
Hi Kayley, please call our TENANT SERVICES MESSAGE HOTLINE: 206.694.6767 with your question. This is a message-only line, open M & Th, 10:30am – 1:30pm. Tenant Counselors response to messages as they come in. In the meantime, here are some resources that might help:
1) Solid Ground’s Tenant Services Deposits webpage: https://www.solid-ground.org/get-help/housing/for-tenants/deposits/
2) A sample letter you might modify to request the return of your holding deposit: https://s14621.pcdn.co/wp-content/uploads/2015/10/SampleLetterHoldingDepositReturn.pdf
3) WA state’s Landlord-Tenant Law on holding deposit violations: RCW 59.18.253: Deposit to secure occupancy by tenant—Landlord’s duties—Violation.
Brittiney Nicole Cummings says
By Law is it legal for a landlord at a apartment complex allowed to hold 2 deposits for two different future residents that applied for the one appartment unit that is available?
Mike Buchman says
Hi Brittiney, I’ll reach out to the Tenant Counselors and get you an answer.
~mb
Mike Buchman says
Washington state landlords may only charge a holding deposit after they have accepted a tenant’s application to a unit. After a tenant moves in, the landlord must apply the holding deposit to the first month’s rent or security deposit. RCW 59.18.253 also states “ It shall be unlawful for a landlord to require a fee or deposit from a prospective tenant for the privilege of being placed on a waiting list to be considered as a tenant for a dwelling unit.” I hope this helps. Not that is information is not from an attorney and Solid Ground cannot provide legal advice on this.
HK says
Hello,
Do you know if there is a similar law in other states such as Pennsylvania where wait list fees are considered unlawful? Thank you!
Liz Reed Hawk says
Hi HK, Solid Ground’s Tenant Counselors provide advice on Washington state landlord/tenant law — but you can leave a message on our Tenant Services message-only line at 206.694.6767 during open hours (M & Th, 10:30am – 1:30pm, PDT) with your questions, and a Tenant Counselor might be able to direct you to resources in PA.
Dorothy says
My daughter recently looked at an apartment and was approved the landlord told her that a resident would be moving out so she gave them 350 deposit to hold the apartment the landlord then said the resident changed their mind so now the apartment is not available but she had another one and that is fine but then the landlord called and again and said that the apartment was no longer available but they have one in another town but my daughter does not want to move there. Legally are they allowed to do that?
Liz Reed Hawk says
Hi Dorothy, Solid Ground’s Tenant Counselors provide advice on Washington state landlord/tenant law. If you live in Washington, please call our Tenant Services message-only line, 206.694.6767, with your questions, and they will respond as soon as possible. (Current message line open hours are: M & Th, 10:30am – 1:30pm, PST.)
Amy says
I recently paid a deposit for an apartment and first months rent was to be free and I was supposed to electronically sign my lease the next day but the lease information was wrong. They have a tenant portal they have logged me out of now after setting it up the day I paid deposit. I contacted management she told me she would get back to me but hasn’t yet. I no longer want the apartment now can I get my security deposit back since I didn’t sign a lease and it’s been a week now
Liz Reed Hawk says
Solid Ground’s Tenant Counselors provide advice on Washington state landlord/tenant law. If you live in Washington, please call our Tenant Services message-only line, 206.694.6767, with your questions, and they will respond as soon as possible. (Current message line open hours are: M & Th, 10:30am – 1:30pm, PST.)
Brooke Ramby says
A few months ago I went on a tour of an apartment for Fall 2020 semester and I applied to be a resident. At the time they were managed by a different company, during this time I was approved and was required to pay a holding deposit of 400$. Well a month goes by and I noticed my Portal no longer worked and I had received an email stating they had changed companies, what was not stated was that the new company would not transfer over my approved application, I had found this out by calling about an increase in the rent amount online. During the phone call I was told I had to reapply and that they had my 400$ but I could not get it back. I reapplied and was denied through the new company. Are they legally aloud to keep my holding deposit for an apartment application I was previously approved for?
Liz Reed Hawk says
Hi Brooke, Solid Ground’s Tenant Counselors provide advice on Washington state landlord/tenant law. If you live in Washington, please call our Tenant Services message-only line, 206.694.6767, with your questions, and they will respond as soon as possible. (Current message line open hours are: M & Th, 10:30am – 1:30pm, PT.)
Lee says
I had recently put a deposit on a place to hold for 850.00 dollars. Over half way through the month I decided that was not the right fit for me and I politely asked for my deposit money back. Are the landlords legally able to withhold the deposit even if I didn’t move in the the room? Would it be a waste of time to go to small claims court. Even though they held the room? Or would it be the deduction from the days it was held.
Mike Buchman says
Hi Lee, I am sorry to hear about the situation. I am not an attorney and I cannot provide legal advice. If you were prevented from moving in due to the COVID-19 outbreak, this section of the governor’s moratorium could possibly apply: “Landlords, property owners, and property managers are prohibited from assessing, or threatening to assess, rent or other charges related to a dwelling or parcel of land occupied as a dwelling for any period during which the resident’s access to, or occupancy of, such dwelling was prevented as a result of the COVID-19 outbreak.” (Full text of the moratorium, which applies through August 1st 2020, here). I suggest you speak to an attorney about the situation. Please feel free to call our tenant counseling hotline (206.694.6767) between 10:30am and 1:30pm on a Monday or a Thursday. A tenant counselor will call you back and help you figure out what legal services are available in your area.
Samantha says
If I pay a holding deposit is the landlord required to process the application in full & cease showings of the apartment to other people while processing the app? Or are they legally still able to accept other applicants during this process? Thanks
Liz Reed Hawk says
Hi Samantha, unfortunately we cannot respond to tenant questions via the blog, but Solid Ground’s Tenant Counselors can provide advice on Washington State Landlord/Tenant Law via phone. If you live in Washington, please call our Tenant Services message-only line at 206.694.6767 during open hours (M & Th, 10:30am – 1:30pm, PT) with your questions, and they will respond as soon as possible.
Nixza says
If I gave my deposit for an apartment but I found another one economic. I ask the landlord back for my deposit and letting them know that I’m not moving in no more. But they don’t want to give me my deposit back. There was no contract or lease with them. What should I do? Advice.
Liz Reed Hawk says
Hi Nixza, we’re sorry to hear about your situation. While we cannot respond to tenant questions via the blog, Solid Ground’s Tenant Counselors can provide advice on Washington state landlord/tenant law via phone. If you live in Washington, please call our Tenant Services message-only line at 206.694.6767 during open hours (M & Th, 10:30am – 1:30pm, PT) with your questions, and they will respond as soon as possible.
Chris says
I was asked to give a 700 dollar holding fee/ security deposit to this apartment complex to even be put on the waiting list. I had not seen the apartment in person yet was told I had to give the 700 dollars to be put on the waiting list, I obliged. On move in day for this apartment I got other inquires back about better units that are closer to my place of work so I had to back out on my expected moving day. Mind you I still had not seen the unit in person. I email the manager and she told me that she is not going to give me my deposit/ holding fee back in full because she is going to now pro-rate the deposit until she has a tenant move into the unit I was supposed to. Is she legally allowed to do this? Even though no documents or agreements were signed stating she could or would do so if I chose not to move into the unit? (From Ohio)
Liz Reed Hawk says
Hi Chris, we’re so sorry to hear about your situation. Unfortunately Solid Ground’s Tenant Counselors provide advice on Washington State landlord/tenant law – but you can leave a message on our Tenant Services message-only line at 206.694.6767 during open hours (M, T, and Th, 10:30am – 1:30pm, PT) with your questions, and a Tenant Counselor might be able to direct you to resources in your state.
Marshalette Samuels says
I paid 1,100 for a home security deposit and section 8 processed my packet and approved it then they reassigned it to someone else who told me that I can’t move because my paperwork was lost landlord lied and said he never received it…..not true I lost my 1,100 dollars because section 8 took to long to do paperwork…help me please
Liz Reed Hawk says
Hi Marshalette, we’re sorry to hear about your situation. While we can’t respond to tenant questions via our blog, Solid Ground’s Tenant Counselors can provide advice on Washington state landlord/tenant law via phone. If you live in Washington, please call our Tenant Services message-only line at 206.694.6767 during open hours (M, T, and Th, 10:30am – 1:30pm, PT) with your questions, and they will respond as soon as possible.