An application or holding deposit is money a property owner can ask a renter to pay to take a rental off the market until you move in later. This usually occurs when you see a rental you like but you can’t move in immediately.
Paying an application deposit enables you to secure the unit and the property owner agrees not to rent it to any other potential renter. Beware that a holding deposit isn’t similar to a security deposit, which serves as a security measure in the event that things go wrong once you’ve signed the lease. Here’s what you should know about an application deposit.