Re: Is Non-Refundable Holding Fee Unreasonable?

Re: Is Non-Refundable Holding Fee Unreasonable? by jannie (IL) on April 21, 2015 @11:01

That's the way I do it also. Especially since you're only talking a few days. However, if it's more than the 4 or 5 days before move in I would get a non-refundable fee. I had a situation where we signed lease to move in later. I e-mailed the names of some lawn care services. Oh, wow, she came back that it was LL responsibility. Of course it's right there in the lease they are responsible and we had even discussed the fact her husband liked to mow the yard.
Bottom line some time had passed - they must have found somewhere closer to her work or they liked better. I could have held them to the lease as they had paid SD & first month - but really didn't want to have to deal with them. A non-refundable fee would have been better in this case. As I lost at least a month.

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Re: Is Non-Refundable Holding Fee Unreasonable? by Anonymous on April 21, 2015 @11:58	[ Reply ]

Any time you have to turn other prospects away, I would do a non-refundable holding fee. I would not sign a lease before the move-in date. It's a tricky situation when a tenant breaks a lease that hasn't begun yet, unless you are smart enough to make the lease "effective" as of the day of signing and to have an early termination fee in the lease, and you collect the first month's rent and SD at the time of signing (not leaving the first month's rent collection until the move-in day). Then you get to keep the first month's rent (which otherwise wouldn't be due yet) and the SD (which you couldn't otherwise keep because tenant hasn't moved in to cause damage), which combined should cover the ETF, if the person cancels before move-in.

Re: Is Non-Refundable Holding Fee Unreasonable? by Garry (Iowa) on April 21, 2015 @12:53	[ Reply ]

In Iowa, we have to prove all damages against their deposit. We can also use the deposit for any unpaid rent. It does not matter what term you use for the word "deposit", it is all "refundable" subject to proving damages and unpaid rent against it. If I get a deposit on April 15 for a May 1 move-in date and the T is no-where to be found, I have to send a 3 day notice to them on May 2 saying rent was due on May 1 In this case, I would send it to their address they put on the app, and also send one to my rental address they were going to move into. Once the 3 days are up, and still no communication from them, I may proceed to find another T. I still have to send them the sec dep statement letter showing what I have done with their dep. by May 30.

Re: Is Non-Refundable Holding Fee Unreasonable? - Landlord Forum thread 333902