What happens to an application deposit if a rental application is accepted?

When a rental application is accepted, the application deposit is typically credited toward the security deposit. This reflects a common practice in the rental industry, where the amount paid as an application deposit is applied to the larger security deposit required for the lease. This process benefits the applicant since it reduces the overall upfront costs associated with securing the rental property.

The rationale behind this practice is to ensure that the funds provided by potential tenants are not lost but rather used to contribute to their future responsibilities as renters. This also illustrates the landlord's acknowledgment of the applicant’s seriousness and commitment to the rental agreement once the application is approved.