Cancellation Fee Deposit (by Steve Drake [TX]) May 10, 2021 11:22 AM
Cancellation Fee Deposit (by Vee [OH]) May 10, 2021 11:46 AM
Cancellation Fee Deposit (by Moshe [CA]) May 10, 2021 12:00 PM
Cancellation Fee Deposit (by WMH [NC]) May 10, 2021 12:11 PM
Cancellation Fee Deposit (by Jason [VA]) May 10, 2021 12:12 PM
Cancellation Fee Deposit (by Kim [TX]) May 10, 2021 12:30 PM
Cancellation Fee Deposit (by S i d [MO]) May 10, 2021 12:39 PM
Cancellation Fee Deposit (by Steve Drake [TX]) May 10, 2021 1:21 PM
Cancellation Fee Deposit (by Jerry [MA]) May 10, 2021 1:29 PM
Cancellation Fee Deposit (by Jason [VA]) May 10, 2021 1:32 PM
Cancellation Fee Deposit (by Steve Drake [TX]) May 10, 2021 1:36 PM
Cancellation Fee Deposit (by Steve Drake [TX]) May 10, 2021 1:38 PM
Cancellation Fee Deposit (by 6x6 [TN]) May 10, 2021 2:40 PM
Cancellation Fee Deposit (by Jerry [MA]) May 10, 2021 2:54 PM
Cancellation Fee Deposit (by DJ [VA]) May 10, 2021 6:14 PM
Cancellation Fee Deposit (by 6x6 [TN]) May 10, 2021 6:32 PM
Cancellation Fee Deposit (by BRAD 20,000 [IN]) May 10, 2021 11:26 PM
Cancellation Fee Deposit (by Steve Drake [TX]) May 11, 2021 8:53 AM
Cancellation Fee Deposit (by FloridaNative [FL]) May 11, 2021 9:28 AM
Cancellation Fee Deposit (by Pmh [TX]) May 11, 2021 5:06 PM
Cancellation Fee Deposit (by Steve Drake [TX]) Posted on: May 10, 2021 11:22 AM Message:
How much of a cancellation fee can landlord charge if Security Deposit is received prior to move-in and prospective tenant(s) backs out? --66.69.xxx.xx |
Cancellation Fee Deposit (by Vee [OH]) Posted on: May 10, 2021 11:46 AM Message:
What does your agreement about the holding fee show? If the wording is about deposit then you are stuck with local and state law, check your rules for any update since you opened for business, deposit by definition is refundable. --76.188.xxx.xxx |
Cancellation Fee Deposit (by Moshe [CA]) Posted on: May 10, 2021 12:00 PM Message:
Deposit is not necessarily refundable.
Often (especially by prior agreement) deposit may be partially or fully forfeit upon default of an agreement.
Remember that if you charge a cancellation fee, then the deposit is FULLY REFUNDABLE no matter what the detriment may be to you. You cannot keep both.
--47.139.xx.xxx |
Cancellation Fee Deposit (by WMH [NC]) Posted on: May 10, 2021 12:11 PM Message:
Security Deposits are for damages, and that includes financial damage. If the tenant failed to take possession and didn't pay their rent or fulfill their lease, you are entitled to damages.
Some tenants seem to believe the Deposit is to hold the place for them while they continue to look around, then want it back if they find something they like better... --50.82.xxx.xxx |
Cancellation Fee Deposit (by Jason [VA]) Posted on: May 10, 2021 12:12 PM Message:
Going forward, it should be clearly spelled out to them.
When I accept an applicant, I tell them that a holding fee is required within 24 hours. In writing, I tell them that the fee is non-refundable but will be credited towards their security deposit at lease signing.
I charge a holding FEE, not a DEPOSIT. --73.177.xxx.xx |
Cancellation Fee Deposit (by Kim [TX]) Posted on: May 10, 2021 12:30 PM Message:
Did they sign the lease? If not, give it all back. --23.30.xx.xxx |
Cancellation Fee Deposit (by S i d [MO]) Posted on: May 10, 2021 12:39 PM Message:
This is what happens when you use a White/Black crayon to color a picture. You need one or the other, not both.
Deposits are, by definition, refundable unless you can prove you suffered damages. Can you prove someone else capable and qualified would have rented from you during that same time? If not, then you have suffered no loss and the deposit should be returned.
Fees are, by definition, not refundable. It doesn't matter if someone else could have rented it or would have rented it. The fee is buying TIME to get the rest of their affairs in order. When two things of value are exchanged, there is no refund. Money for Time; Time for Money.
Next time...be sure to take a FEE. Not a "Fee Deposit." There exists no such animal. For this time, I would work out an equitable agreement with the person who backed out on you. Get it in writing. --107.216.xxx.xxx |
Cancellation Fee Deposit (by Steve Drake [TX]) Posted on: May 10, 2021 1:21 PM Message:
Guys and gals,
Thank you for your responses.
I have not received the security deposit yet, but the prospective tenants are already asking me whether they back out after giving me the security deposit they then get the whole thing back. If I receive a security deposit three weeks in advance of new tenants moving in on June 1, and two weeks from now they back out, have I not suffered liquidated damages for taking my property off the market and holding it only for them?
For Jason in VA, what is the amount typically of your holding fee? Is it a percentage of monthly rent, or a per day charge? --66.69.xxx.xx |
Cancellation Fee Deposit (by Jerry [MA]) Posted on: May 10, 2021 1:29 PM Message:
Steve, what about a lease? Have they already signed a lease? If they have already signed the lease, then they owe for the full term of the lease. If they back out, then they owe you for the time until you are able to re-rent the unit. A security deposit would be used to cover those damages. --71.233.xxx.xx |
Cancellation Fee Deposit (by Jason [VA]) Posted on: May 10, 2021 1:32 PM Message:
My holding fee is always equal to one month's rent. If they back out or can't come up with the rest of the move-in funds, they've lost that fee. --73.177.xxx.xx |
Cancellation Fee Deposit (by Steve Drake [TX]) Posted on: May 10, 2021 1:36 PM Message:
Jerry,
No lease has been signed yet. I verbally gave acceptance of the applicants yesterday, and am meeting them today to pick up security deposit for a June 1 move-in. I typically do the lease sign-up and hand over of keys the day before they move in.
The more I think about this I like the idea of a "Holding Fee" and waiting until lease-sign up to collect the Security Deposit and first month's rent. --66.69.xxx.xx |
Cancellation Fee Deposit (by Steve Drake [TX]) Posted on: May 10, 2021 1:38 PM Message:
Thanks Jason! --66.69.xxx.xx |
Cancellation Fee Deposit (by 6x6 [TN]) Posted on: May 10, 2021 2:40 PM Message:
As Jason stated --73.120.xx.xxx |
Cancellation Fee Deposit (by Jerry [MA]) Posted on: May 10, 2021 2:54 PM Message:
Until the lease is signed, you will need to return any deposits if they back out.
I never take any money until the lease is signed, and until it is signed I keep showing the unit to other prospects. If they want it, they need to sign and pay. --71.233.xxx.xx |
Cancellation Fee Deposit (by DJ [VA]) Posted on: May 10, 2021 6:14 PM Message:
I operated a little differently.
I would have them sign the lease tomorrow & commit themselves, with a 6/1/possession date.
Meet again on 5/31 to give keys after I confirm utilities are switched.
I would take the security amount as a holding fee upon signing, and convert it to security deposit when first month's rent is paid at key transfer.
Why wait to sign the lease for 3 weeks? If they refuse to sign now, they are not committed - still looking at other places. --68.229.xxx.xxx |
Cancellation Fee Deposit (by 6x6 [TN]) Posted on: May 10, 2021 6:32 PM Message:
DJ, why bother having them sign the lease at that point if you are not yet collecting first months rent and giving the keys?
Why not just do the holding fee with the proper paperwork and then there is no claim that they can make that they have a lease agreement with you and force you to give the keys?
The other option would be as Brad does and not hold the property at all. Just have them sign the lease and pay all move in monies and then they can move in whenever they want.
With the way that you are doing it, they may be able to sue you in court. Just my uneducated thoughts. --73.120.xx.xxx |
Cancellation Fee Deposit (by BRAD 20,000 [IN]) Posted on: May 10, 2021 11:26 PM Message:
Steve,
The definition of deposit is something that is refundable. I had a similar situation. MY judge ordered a refund because I was not harmed, only disappointed.
Get busy and re-rent the place. They don’t want to live there so I don’t want them. Can’t force them the move in.
Holding fee wording must be precise. Most are weak.
My slogan “It ain’t rented til it’s rented.” Money, lease, keys, possession.
We don’t hold homes. It stays on market until fully rented. 90% will rent it now rather than lose it. We also don’t lose hundred$$$ of rent each time to meet an applicant’s schedule.
We normally do not pre-rent before the previous res is out. Too many obstacles - cleaning, updates, slow exits, etc. We DO advertise and take apps in advance. Can rent within a day or two of when the res actually vacates. PLUS many leave before the end of the month.
BRAD
--73.102.xxx.xxx |
Cancellation Fee Deposit (by Steve Drake [TX]) Posted on: May 11, 2021 8:53 AM Message:
Okay, good thoughts.
Advertising a month in advance and taking all apps so that you have a pool to choose from until previous residents move out means you have not selected anyone until far along in the process. Perhaps the last week or weekend that your current tenants are getting out and the house is vacated.
How does that give the new tenants you have selected time to give 30-day notice at their current place of residence and move in to your place by June 1?
--66.69.xxx.xx |
Cancellation Fee Deposit (by FloridaNative [FL]) Posted on: May 11, 2021 9:28 AM Message:
OP, based on your comment you gave a verbal acceptance yesterday and there is no lease signed and no deposit paid yet. Today the potential tenant asked what would happen to their deposit if they cancelled between now and June 1 (prospective occupancy date). You are so early in the process that it would be best to let this one go - since there is nothing tying them to the property - no lease, no money and now cold feet after less than 24 hours. You are fortunate that you know this now, less than one day after you accepted their application.
Don't take your property off the market. Continue to look for someone that is looking to rent your property and meets your guidelines. If your market is anything like mine the demand far exceeds the supply. I don't see where you sustained financial damages in this particular instance.
--99.56.xx.xx |
Cancellation Fee Deposit (by Pmh [TX]) Posted on: May 11, 2021 5:06 PM Message:
in future: you need to collect a (non refundable) hold fee & convert to security deposit on move in. --107.77.xxx.xxx |
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