Non-refundable holding deposit
A non-refundable holding deposit (often $200–$500) holds the unit while you complete paperwork. You lose it if you back out — read carefully.
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What it actually means
A holding deposit takes the unit off the market. If you sign the lease, it usually converts to part of your security deposit.
If you back out, it's forfeit. If the landlord backs out, you should get it back — make sure that's in writing.
What it looks like in a lease
"Applicant shall pay a non-refundable holding deposit of $300 to reserve the unit pending lease execution."
What to watch for
- Conditions under which the landlord must refund
- Whether it applies to security deposit
How to negotiate it
Ask for: 'refundable if landlord rejects application or fails to provide a lease within X days.'
When it crosses into a red flag
- No refund even if landlord backs out
- Deposit exceeds one month's rent
Frequently asked questions
What if the landlord rents to someone else?
You should get a full refund — but only if that clause is in writing. Verbal promises don't count.
Want to know how this works in your specific state? Read the Security deposit laws guide, or pick your state from the guide index.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
