To sort out serious applicants, a NSW property manager asks everyone applying for a unit to pay a holding fee of one week's rent with their application. Is this permitted?
Correct Answer
C) No, a holding fee may only be taken once an application is approved
Under section 24 of the Residential Tenancies Act 2010, a holding fee of no more than one week's rent can only be requested from a prospective tenant once their application has been approved by the landlord. The fee must go towards rent if the tenant signs the agreement. Collecting it from every applicant before approval is not allowed.
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