A pre-lease deposit agreement is an arrangement between a prospective renter and the landlord where a money deposit is placed to reserve a rental property for a future period. Typically this deposit is equal to the cost of the property’s first month rent.
Signing and paying a pre-lease deposit agreement will take the property off the market and begin the referencing process. A tenant is essentially committing to a rental unit in a written agreement. If possible, it is always recommended that a renter view the property in person before making such a commitment. This benefits both the landlord and the potential tenant in not removing the property from the market if it really will not fit the tenant’s needs in the long run.