Holding Apartment Question - Landlord Forum thread

Holding Apartment Question by Lisa (NY) on November 5, 2009 @22:29

I had an add in newspaper to rent apartment. The first couple that came said they wanted it. They gave me a deposit and application fee. She said she would mail the application back to me filled out. A few days later she said she did not have time, would do it in a couple of days. I waited and received it yesterday.

This morning, just ready to put application through background check service and I get a call now a week later they changed their minds and want their money back. They said they found something closer to work. I have held the apartment for them, and now a week has gone by and lost advertising.

Is it possible to charge a fee or part of the deposit after a certain amount of time has gone by and perspective tenants have changed their minds? And if so what would most LL's consider reasonable or what would be lawful?

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Re: Holding Apartment Question by Micah on November 5, 2009 @23:11	[ Reply ]
It depends on what your receipt or contract said. Did they sign a Holding fee document or a Security Deposit, or just an application? Was it from the LPA?

Re: Holding Apartment Question by OK-LL on November 5, 2009 @23:15

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You should have used a holding fee agreement which would have allowed you to specify a particular amount of $$ which would hold the unit and would be non-refundable, unless tenant doesn't qualify for some reason not including false information provided on the application. That way you would be compensated for the time held, and the lost potential other tenants. On lease signing, that holding fee would convert to partial rent (don't convert it to SD as that may have negative ramifications if it goes to court).

If you had no written agreement pertaining to the deposit, you should attempt to negotiate a reasonable fee with the non-tenant -- like the rental amount for the time held, plus the first advertising fee. Good luck.

Re: Holding Apartment Question by Lisa on November 6, 2009 @00:04

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I had an Application that had a clause to the effect that I could retain $50 if the Applicant withdraws the Application within a week and 1/2 of the holding deposit if after.

I once went to Court with an Applicant who changed their mind a little more than 3 weeks later with the same Application and Stipulation. The Judge gave them a Judgment against me for the entire holding fee. I never understood why. I lost a months rent plus.

The recent Applicant did not want to give me the $50, but eventually offered to let me keep the $35 Application Fee. She at least caught me just before I put the App through this morning. I see the LPA App has it covered. I am going to start using that one.

I would like to know the reason it is not good to convert the SD to Deposit? I have normally done that. I am learning so much about my mistakes from reading this forum.

Thanks for the info.

Re: Holding Apartment Question by Lisa on November 6, 2009 @00:06	[ Reply ]
Sorry, I mean't converting holding fee to SD?

Re: Holding Apartment Question

Re: Holding Apartment Question by Lisa on November 6, 2009 @00:19	[ Reply ]
Does LPA have a holding fee agreement? I only can find the Application to Rent on LPA.

Re: Holding Apartment Question