Security Deposit
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Security Deposit (by Gail [WI]) Jun 30, 2009 4:29 AM
       Security Deposit (by joann [PA]) Jun 30, 2009 4:38 AM
       Security Deposit (by Gail [WI]) Jun 30, 2009 4:44 AM
       Security Deposit (by Brad [IL]) Jun 30, 2009 4:59 AM
       Security Deposit (by Gail [WI]) Jun 30, 2009 5:41 AM
       Security Deposit (by EC [MA]) Jun 30, 2009 5:44 AM
       Security Deposit (by Gail [WI]) Jun 30, 2009 7:58 AM
       Security Deposit (by Nancy [IN]) Jun 30, 2009 10:44 AM
       Security Deposit (by Erin [FL]) Jun 30, 2009 4:45 PM
       Security Deposit (by Anderson [IN]) Jul 1, 2009 4:21 AM

Security Deposit (by Gail [WI]) Posted on: Jun 30, 2009 4:29 AM

State Specific Question About: WISCONSIN (WI)

I never experienced this in 25 years of rentals.

I showed an upper unit in my 2 unit duplex on June 8th, tenant loved it and we met a few days later (after checking her out) to collect the security deposit. Once I receive the security I told her I would remove the "for rent" sign and all news ads. I informed her that I would call her on July first to let her know the condition of the unit(after the tenants moved out)and when she could move in, possible July 2nd or 3rd, I would pro-rate the rent. We would meet on the 1st and go over the lease and sign it.

I received the deposit on June 11th, once that was done I called the other 4 interested people to let them know it was rented.

Yesterday June 29th, she called to say she things came up and she wouldn't be renting it and wants to meet to get her deposit back.

Also I'd like to add she lives with her parents and they are landlords too.

My question: Isn't a security deposit money you loose if you back out of the unit? Isn't it like any other deposit you loose it if you back out of the deal, it's money down right? I know once they move in it's for damages.

Thank you for any information on this for Wisconsin, Gail

Security Deposit (by joann [PA]) Posted on: Jun 30, 2009 4:38 AM

I worded ours as non refundable holding fee

Security Deposit (by Gail [WI]) Posted on: Jun 30, 2009 4:44 AM

I know that now...rewording it from now on. I never had to deal with this before, people followed through.

Security Deposit (by Brad [IL]) Posted on: Jun 30, 2009 4:59 AM

If they had signed the lease, then backed out you could keep money from the SD for damages. Since they didn't sign a lease, there we no damages from their tenancy.

Security Deposit (by Gail [WI]) Posted on: Jun 30, 2009 5:41 AM

I have this at the bottom of all my applications. Does this save me at all??


Security Deposit (by EC [MA]) Posted on: Jun 30, 2009 5:44 AM

Tough lesson learned. A security deposit should have accompanied a signed lease. If she did not sign a lease and the money was not indicated as a non-refundable deposit, IMO you would need to return it to her.

Security Deposit (by Gail [WI]) Posted on: Jun 30, 2009 7:58 AM

I just got off the phone with my lawyer. I was told that I can send her a 21 day letter stating that I will be subtracting money for advertising for the unit and days lost until I rent the unit. I have to make every effort in finding a replacement tenant for her, posting signs and news paper ads.

Interesting huh.

Security Deposit (by Nancy [IN]) Posted on: Jun 30, 2009 10:44 AM

Your attorney is wrong if she didn't sign the Lease. You have nothing but a deposit for a deal that didn't go through, unless you have a Non-Refundable Holding Fee document.

You can try it, but it might not work.

Security Deposit (by Erin [FL]) Posted on: Jun 30, 2009 4:45 PM

I agree that you cannot keep anything. It is a deposit and you cannot take anything for damages because you have no lease. You didn't even have a set move in date. You can try to decduct the costs you say, but if the person goes to court to get all of the money back I think you would lose. Give it back and take it as a lesson learned. Non refundable holding fee is you wait to sign lease or security deposit and first mo rent if you sign a lease.

Security Deposit (by Anderson [IN]) Posted on: Jul 1, 2009 4:21 AM

I agree that your Lawyer is wrong. There is no damage to the unit, therefore a security deposit must be returned.

Now, a Holding fee would be kept.

I can't speak for the Judge you might have to go in front of, but here in the Fort, I would be court ordered to return that security deposit.

Are you sure you didn't call it a Holding fee? Did you at the VERY least verbally tell her that the SD will be lost if she fails to move in? I am going to hazard a guess that was not even done....

I think you have a great life lesson on your hands. What doesn't kill you only makes you stronger.

Subject: RE: Security Deposit
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