 Are rental binders legal? (by Mandy Newbie [RI]) Aug 17, 2018 2:55 PM
 Are rental binders legal? (by plenty [MO]) Aug 17, 2018 5:57 PM
Are rental binders legal? (by RathdrumGal [ID]) Aug 17, 2018 6:42 PM
Are rental binders legal? (by S i d [MO]) Aug 17, 2018 6:45 PM
Are rental binders legal? (by Vee [OH]) Aug 17, 2018 7:24 PM
Are rental binders legal? (by fred [CA]) Aug 17, 2018 8:24 PM
Are rental binders legal? (by Hoosier [IN]) Aug 18, 2018 1:10 PM
Are rental binders legal? (by Robert J [CA]) Aug 18, 2018 8:21 PM
Are rental binders legal? (by elliot [RI]) Aug 19, 2018 2:58 PM
Are rental binders legal? (by CGB [MI]) Aug 20, 2018 9:10 AM
Are rental binders legal? (by Dan [NY]) Aug 20, 2018 11:45 AM
Are rental binders legal? (by Mandy Newbie [RI]) Posted on: Aug 17, 2018 2:55 PM
Message:
Is it acceptable to take a binder of say $500 dollars or so to show the seriousness of a potential renter, while you search out their credit and keep showing the apartment to others - I ,mean sort of like what I understand real estate agents do?
Thank you --173.48.xxx.xxx |
Are rental binders legal? (by plenty [MO]) Posted on: Aug 17, 2018 5:57 PM
Message:
I have taken a Holding Fee. Usually $100 or $200. A fee is not refundable if I approve them but if I reject them I refund. I have a one page agreement called Holding Fee. It's acceptable in my area. --99.203.xx.xxx |
Are rental binders legal? (by RathdrumGal [ID]) Posted on: Aug 17, 2018 6:42 PM
Message:
I have taken a holding fee that is equal to the SD amount. My agreement states that the holding fee will be forfeited if the applicant does not rent my apartment, if they rent the apartment, the fee converts to the SD. --98.146.xxx.xxx |
Are rental binders legal? (by S i d [MO]) Posted on: Aug 17, 2018 6:45 PM
Message:
Regarding what real estate agents do, are you referring to Earnest Money?
My application states that, once approved, applicant must pay a non-refundable holding fee of $400, and we will not hold more than 2 weeks. That only goes into effect if we have one applicant. However, if I have multiple interested parties, it becomes first person to qualify and pay wins.
It's rare that I have to take Holding Fees. Usually, I fill vacancies in 3 days or less.
Find out what your market will tolerate. If other LLs in your town are getting pre-approval funds, then get what your market will allow. It would be highly unusual in my market to collect a fee prior to application approval. I rent Class C units (basic, clean, safe, functional, nothing fancy). Maybe it would work for Class A (high end, swanky, multiple well-qualified applicants). --173.19.x.xxx |
Are rental binders legal? (by Vee [OH]) Posted on: Aug 17, 2018 7:24 PM
Message:
A lot, well the whole agreement hinges on your state and local contract law, once they have been approved then you will have them in a civil contract for renting. Study your state and local laws before opening for business, legal help is the highest hourly cost we have. --76.188.xxx.xx |
Are rental binders legal? (by fred [CA]) Posted on: Aug 17, 2018 8:24 PM
Message:
I usually don't take a holding fee (or Ernest Money), but the in last vacancy (last month) I did, and the new tenants already moved in.
My receipt says that this money is non refundable if they don't qualify or if they change their minds. But refundable if I change my mind. --99.59.x.xxx |
Are rental binders legal? (by Hoosier [IN]) Posted on: Aug 18, 2018 1:10 PM
Message:
I am not a lawyer so can't respond about legality, but I do similar to what Sid does...take a modest (usually $400 but depends on the monthly rent) fee that is stated as non-refundable if they don't pay the total due by a certain date...usually I give them about a week.
However, I see that you are asking about taking this BEFORE you approve. I've never done that...and probably will not. I like to approve first. --99.92.xxx.xxx |
Are rental binders legal? (by Robert J [CA]) Posted on: Aug 18, 2018 8:21 PM
Message:
In many States a "holding fee" won't work. Here's one common problem. Someone wants the rental. They give you a completed application and a $500 holding fee. You give them a receipt for the money.
The applicants phone gets disconnected for non-payment and they never call you back. You then rent the property to someone else. Then a month later they show up and say, "You rented my house to someone else, you accepted my holding fee. I'm going to sue you!"
You had no right to rent the home to someone else because you didn't put down on the receipt and the applicant didn't sign an agreement that the holding fee is for ONLY 5 DAYS! If the applicant doesn't sing a lease and come up with all of the moving costs, you are free to rent the home to someone else. And for each day the applicant stalls, you are deducting from the holding fee the daily rent of like $30 a day....
--47.156.xx.xx |
Are rental binders legal? (by elliot [RI]) Posted on: Aug 19, 2018 2:58 PM
Message:
In RI, you can take a holding fee, at least my lawyer says so.. --71.232.xxx.xxx |
Are rental binders legal? (by CGB [MI]) Posted on: Aug 20, 2018 9:10 AM
Message:
I dont think the original poster was talking about a holding fee. He was asking for something similar to earnest money as proof they have funds, potentially from many possible tenants. I would say it is legal as long as if you choose to give the unit to someone else it gets refunded. --107.130.xxx.xxx |
Are rental binders legal? (by Dan [NY]) Posted on: Aug 20, 2018 11:45 AM
Message:
I have taking a non-refundable holding fee. I take it from tenants on program or not. If section 8 I take dependent on the unit passing a section 8 inspection with the landlord allowed to make corrections at our discretion. This approach has saved us several times, meaning folks who wanted to walk away. Our fee is usually one month of rent and becomes the security deposit at move in. --107.77.xxx.x |
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