What Is The Holding Deposit vs. The Security Deposit?

Tyler Malvase -

What is the $500 Holding Deposit? 

The $500 holding deposit you paid to book your unit will not be charged to your account. The charge is only a hold that will show as pending on your account for 7 days. After those 7 days, the pending charge will automatically be removed from your account. 

The $500 charge will not be applied to your rent balance or security deposit.

If you choose to cancel 48 hours after your booking then the $500 deposit is charged to your card and paid to the landlord for the cancellation fee. 

 

Why do I Have to Pay a Security Deposit?

Most landlords require that their tenants provide a security deposit. To see how much your security deposit is please consult section 6.f in your lease agreement. The security deposit will be held for your entire lease duration for damage liability purposes. The security deposit can be used by your landlord to repair any damage that might occur during your stay. To avoid any deductions to your security deposit, please make sure to leave the unit in the same condition it was in when you moved-in and make sure to document the condition of the unit when you move-in and move-out.

 

HomeSuite does not hold the security deposit during your stay. Once you pay the invoice for your security deposit, it is automatically sent to your landlord. After you move-out, your landlord will release the security deposit back to HomeSuite and inform us of any deductions to the deposit. Once HomeSuite receives the deposit from the landlord, we will return it you. For information on how HomeSuite returns security deposits, please consult this article Your Security Deposit Refund.

 

How Long will it Take After I Move-Out for me to Receive my Security Deposit Back?

 

If you would like to know when you can expect your security deposit to be refunded please consult the chart below. The amount of time a landlord has to return your deposit varies depending on the state that you rented in. If it has been more than the number of days listed for your state and you have not received your security deposit refund, please contact the HomeSuite Customer Care Team for assistance. 

 

State Number of days
California 21
New York 30-60*
Illinois 30
Massachusetts 30
Washington DC** 45
Washington (State) 14

*New York State law stipulates that landlords have a "reasonable amount of time" to return security deposits. Current legal precedent suggests a reasonable amount of time is 30-60 days.

**Washington DC refers to Virginia, Maryland, and the District of Columbia.

 

How will HomeSuite return my security deposit?

 

Tenants with an American Bank Account

If you bank with a U.S. based financial institution, HomeSuite can reimburse you one of two ways: ACH Bank Transfer (Echeck) or a physical check. Once your landlord releases your security deposit, you will receive an invite to the website Bill.com. Bill.com is a third party payment vendor that we use for security deposit refunds. 

If you opt to receive your refund via ACH Bank Transfer, you will receive an email from one of our vendors, Bill.com, asking for you to provide your bank information as well as some additional information. Once you provide the requested information, we will be able to process your security deposit refund via ACH Bank Transfer. If you would prefer to receive your refund via physical check you can simply select that option through Bill.com and provide your forwarding address. 

For more information on Bill.com please consult this article How To Use Bill.com.

 

International Tenants

For tenants who do not have a U.S. based bank account, HomeSuite is able to send your security deposit refund via International Wire Transfer. If you need to receive your deposit refund via international wire transfer, please contact the HomeSuite Customer Care Team at care@yourhomesuite.com or submit a request below for more information on processing an international wire transfer.

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