Re: Is Non-Refundable Holding Fee Unreasonable?

Re: Is Non-Refundable Holding Fee Unreasonable? by Anonymous on April 22, 2015 @11:33

A delay between qualifying a tenant and the actual lease signing/move in day is not unusual, and the reason for it doesn't matter (so you list of cleaning, which seems to have everyone confused and upset is a non-issue).

Any time there is a delay between qualifying a tenant and lease signing, you should collect a holding fee to protect your position. As you point out, no holding fee means the tenant and landlord can walk at any time.

If you use a lease instead of the holding fee, you must be very careful to identify the "effective date" of the lease as the day of signing, not the day of move in. Without that, if the tenant cancels before move in, the lease is not yet effective and you have to return all money collected.

If you DO have the lease effective date identified as the lease signing date, then if the tenant doesn't move in or attempts to cancel, they are bound by the terms of the lease and must pay the rent and all costs of re-leasing (utilities, new tenant fee if you use a PM) until you have secured a new tenant. You can take these "damages" from the SD.

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Re: Is Non-Refundable Holding Fee Unreasonable? by Anonymous on April 22, 2015 @11:35	[ Reply ]

And as you have indicated is the case, you would then apply the holding fee to the security deposit or rent due at lease signing.

Re: Is Non-Refundable Holding Fee Unreasonable? - Landlord Forum thread 333981