Refund of Security Deposit before Lease Signed - Landlord Forum thread 336792

Refund of Security Deposit before Lease Signed by Jessie (Pennsylvania) on June 30, 2015 @14:17

Hi, I applied for an apartment and was told to pay the application fee and security deposit at that time. I had not yet seen the lease. I was called later that day and was told I was approved and that I "had a new apartment", with occupancy to begin over a month later. That evening I was finally sent the lease. I read over it and sent an email with a few questions regarding the lease the next day. Over a week later I had not gotten a response. I had not yet sent it the lease. I emailed the landlord and told her I would not be signing the lease or taking the apartment. She said she was keeping my security deposit. Can she keep my security deposit if there was no legal agreement that I was going to inhabit the apartment, a lease had not been signed, and I had not ever occupied the apartment? I can only find legal information on security deposits after the lease has been signed, not prior to. Thanks in advance!

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Re: Refund of Security Deposit before Lease Signed by Garry (Iowa) on June 30, 2015 @17:06	[ Reply ]

You are correct. The LL cannot keep your deposit, because both of you needed to sign the lease to make it a binding agreement. However, you may have to take her to court to get your money back, because it doesn't sound like she is going to give it back willingly. But, this is your fault, also. You should never have given ANY deposit money on anything before you were approved for the apartment, had a chance to read the lease, and then signed the lease. I take apps, run them, and once I approve of someone, I call them up, and if they are still interested in the property, I ask them to meet me at the property within 24 hours. Then they can look over the lease, ask questions, and if we agree on everything, we both sign the lease, and then they give me their deposit money ( in which they get a receipt for), and the deal is done. They don't pay any rent till they are ready to move in, at which time they get keys for the first months rent.

Re: Refund of Security Deposit before Lease Signed

Re: Refund of Security Deposit before Lease Signed by Maiko (AL) on July 1, 2015 @12:21	[ Reply ]

Personally, I don't take the reservation fee/deposit until after I approve the tenant. However, a holding fee/reservation fee that is non-refundable (at least in my state) is completely legal. What does the application say regarding the deposit?