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Re: binder agreement/deposit fee - Landlord Forum thread 196350

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Re: binder agreement/deposit fee by Anonymous on February 11, 2010 @18:11

At this point I think it is fine to decline them since they seem hard to get a hold of and you want to move on. If you decline them, you have to refund their money. A deposit by definition is refundable. You cannot have a non-refundable deposit. As far as the insurance and utilities go, I think it is rediculous to expect a tenant to get these when they don't have a lease signed. Why would they go ahead and pay for these things if they don't even have a lease yet?
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Re: binder agreement/deposit fee by Anonymous (mi) on February 12, 2010 @05:55 [ Reply ]
I should have stated that they have insurance and the utilities set for the 15th. That would have been the last day for them to sign the lease. The day I have a tenant sign the lease and give them the keys is the last day I have control since I can't turn the utilities off once they have possession.
    Re: binder agreement/deposit fee by Anonymous on February 12, 2010 @08:01 [ Reply ]
    I have them sign the lease when they want the place that way I know for sure I have them commited legally which can be a couple weeks before the lease starts and they move in. Then I don't give keys until the day of the lease, after making sure utilities are ready to go in their name. I find much better not to sign the lease and give keys the same day otherwise you have no committment from them and could just be wasting your time since they could walk. I of course get at least first months rent and one month rent amount as a deposit when the lease is signed, so if they tried to walk I have not only this, but the lease saying they are responsible for the length of the lease.

    It is not the 15th yet, and since they say they have things set up for that date they are following through on their promise, so you have to on yours as well. As I said before, why would tenant change utilites over to their name for a time period before they have possession? So of course they have it set-up for the day they plan to move in and have possession. Also, in the future you must do as others suggested and call it a non-refundable holding FEE as I explained earlier about deposits. And have them sign a form that explains this and explains the fee is to hold the place for them as long as their application is approved to a certain date. If they do not sign lease and do other things you require by that date, then the place will no longer be held for them and they lose the fee. If they do those things then the fee converts to a security deposit.

      Re: binder agreement/deposit fee by Anonymous (mi) on February 12, 2010 @08:56 [ Reply ]
      The holding deposit form I used was from this site "Rental Binder and Deposit Receipt", in the agreement that have until the 15th to sign a lease and occupancy is to be on the 15th. So if they show up on the 15th to sign they will need to have the utilities in place. When you switch utilities you tell them the date you want them started and so far they have place no calls.

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