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Tutorial7 min read

Collect a Security Deposit of 1 Month's Rent Online

Property managers and landlords can collect rental security deposits online using pre-authorization holds (up to 28 days), partial upfront charges, or traditional bank transfers. No paperwork, no cash.

Your Options for Rental Deposits

There are three main approaches to collecting a one-month security deposit online:

  • Pre-authorization hold: Hold the deposit on a credit card for up to 28 days without charging
  • Partial upfront charge: Charge the deposit now, collect rent separately
  • Bank transfer deposit: Collect via SEPA or iDEAL for zero transaction fees

3 Ways to Collect One Month's Rent as Deposit

1

Pre-Authorization Hold (28 Days)

Place a hold on the tenant's credit card equal to one month's rent. No charge is made — the funds are simply reserved on their card.

How it works
You send a deposit request via PayRequest. The tenant's credit card is authorized for the full deposit amount (e.g., €1,200). The hold lasts up to 28 days. You capture it if there are damages at move-out, or release it if everything is in order.
Best for
Short-term rentals, vacation homes, furnished apartments with stays under 28 days
PayRequest feature
Manual capture via Stripe or Mollie integration
2

Partial Upfront Charge

Charge the full month's deposit before the tenant moves in. Refund partially or fully when the lease ends and the property is returned in good condition.

How it works
Send a payment link for the deposit amount. The tenant pays via credit card, iDEAL, SEPA, or Bancontact. The funds are in your account immediately. At lease end, issue a full or partial refund based on property condition.
Best for
Long-term rentals, annual leases, commercial properties where the hold period exceeds 28 days
PayRequest feature
Payment link + refund workflow
3

Traditional Bank Transfer Deposit

Collect the deposit via a direct bank transfer (SEPA, iDEAL) into a dedicated deposit account. Zero transaction fees with bank payment methods.

How it works
Create a payment request with bank transfer as the payment method. The tenant transfers one month's rent directly. PayRequest tracks the payment and sends confirmation to both parties.
Best for
Regulated markets where deposits must be held in a separate account, or when minimizing fees is the priority
PayRequest feature
SEPA/iDEAL via Mollie or Ponto bank integration

Property Types That Use Online Deposit Collection

Apartments & Flats

Collect one month's rent as a security deposit before handing over keys. Track deposits digitally instead of managing spreadsheets.

Vacation Homes & Holiday Rentals

Pre-authorize a damage deposit on the guest's credit card. Release automatically after checkout if no issues are found.

Commercial Property

Collect larger security deposits for office spaces and retail units. Bank transfers keep fees at zero for high-value deposits.

Student Housing

Simplify deposit collection for student rooms and shared housing. Send payment links that tenants can pay from their phone.

Furnished Rentals

Hold deposits for furnished apartments where the furniture and appliances increase the risk. Pre-auth covers short stays, upfront charge covers longer leases.

Seasonal Properties

Manage deposits for seasonal rentals — ski chalets, beach houses, and summer cottages. Automated reminders ensure deposits are collected before arrival.

Important Things to Know

  • 28-day maximum for holds: Pre-authorization holds expire after a maximum of 28 days (Mollie) or 7 days (Stripe). For leases longer than 28 days, use an upfront charge with refund.
  • Credit card only for holds: Pre-authorization only works with credit cards. iDEAL, SEPA direct debit, and Bancontact process payments immediately — they cannot place holds.
  • Local regulations: Many countries and regions have laws about security deposit limits, separate deposit accounts, and refund timelines. Always check local tenant protection laws.
  • Document everything: Take photos, create checklists, and keep records of property condition at move-in and move-out. This protects both landlord and tenant in case of disputes.

Frequently Asked Questions

Can I hold a one-month security deposit on a credit card?

Yes, but only for up to 28 days with Mollie or 7 days with Stripe. For monthly rentals or shorter stays, pre-authorization works perfectly. For longer leases, charge the deposit upfront and refund at lease end.

What is the cheapest way to collect a rental deposit online?

Bank transfers via SEPA or iDEAL have the lowest fees — often €0.00 to €0.29 per transaction. Credit card deposits cost 1.5–2.9% in fees. For a €1,200 deposit, that is the difference between €0.29 and €35.

How do I refund a security deposit online?

If you collected via credit card or iDEAL through PayRequest, you can issue a full or partial refund directly from the dashboard. Bank transfer refunds can be initiated manually to the tenant's IBAN.

Is a pre-authorization visible on the tenant's bank statement?

Yes, pre-authorizations appear as pending charges on credit card statements. The amount is reserved but not deducted. This can sometimes cause confusion, so inform tenants upfront that the hold is temporary.

Can I collect security deposits for multiple properties at once?

Yes. With PayRequest, you can create individual deposit requests for each property and tenant. Track all deposits from a single dashboard, send automated reminders, and manage captures or refunds in bulk.

Related

Collect Rental Deposits Online — No Paperwork

PayRequest lets landlords and property managers collect security deposits digitally. Send payment links, hold funds on credit cards, and track every deposit from one dashboard.