A holding deposit is money a prospective renter pays to reserve an apartment before the lease is signed, usually while application, documentation, and move-in steps are being completed. It is different from a security deposit: a holding deposit reserves the home before tenancy begins, while a security deposit is generally tied to damages or unpaid amounts after a lease is in place. Operators should document the amount, due date, refund terms, and how the payment will be applied if the applicant moves forward.