A Holding Deposit is a sum of money paid to you as an owner or letting agent by the prospective renter to reserve a rental property before the signing of a tenancy agreement.
Holding deposit is an advanced payment for rent. Enabling a Holding Deposit is optional, depending on your needs in securing a tenant for the property.
A Holding Deposit is normally non-refundable if the prospective tenant withdraws their application for tenancy. However, the tenant is eligible for a refund of the holding deposit if the owner or agent is misleading and deceptive, among other things.
Please check the residential tenancy laws in your State and ensure you comply with Holding Deposits.