Modified Hold Fee
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Modified Hold Fee (by S i d [MO]) Jun 29, 2022 4:15 PM
       Modified Hold Fee (by Jim in O C [CA]) Jun 29, 2022 4:48 PM
       Modified Hold Fee (by Sisco [MO]) Jun 29, 2022 6:12 PM
       Modified Hold Fee (by melinda [MD]) Jun 29, 2022 6:37 PM
       Modified Hold Fee (by Ed [CA]) Jun 29, 2022 7:32 PM
       Modified Hold Fee (by 6x6 [TN]) Jun 29, 2022 8:37 PM
       Modified Hold Fee (by David [MI]) Jun 29, 2022 8:46 PM
       Modified Hold Fee (by zero [IN]) Jun 30, 2022 1:11 PM
       Modified Hold Fee (by David [MI]) Jun 30, 2022 1:56 PM
       Modified Hold Fee (by David [MI]) Jun 30, 2022 1:57 PM
       Modified Hold Fee (by zero [IN]) Jul 1, 2022 3:49 PM

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Modified Hold Fee (by S i d [MO]) Posted on: Jun 29, 2022 4:15 PM
Message:

I used to hold for up to 2 weeks for $400 (about 1/2 months rent). If they failed to move-in, pay all fees owed, etc, it was forfeit. If they do move-in, I would credit the holding fee toward their move-in costs.

Example: Deposit $750, Rent $750 less the Holding Fee of $400 paid in advance = $1,100 due in 2 weeks or less to move in.

But then I don't like eating vacancy!

I've decided to change our policy. Today was my first test with a newly approved applicant who needed "a few days" to get her move-in money together. I will hold for 24 hours after approval, then if they want me to keep holding they must pay the Hold Fee of $400. Out of that I deduct a daily amount equal to the per diem rent rate ($25 per day on a $750 house) from the Hold Fee. So now it works like this. Let's say a person wants me to hold for 5 days past the first 24 hours.

Deposit $750, Rent $750 less Hold Fee ($400 - (5 days * $25/day)) = $1225 due in 5 days to move in.

Applicant didn't bat an eye and said okay. So basically now I'm not eating any lost rent for the folks who DO move in, and I get to keep the entire holding fee if they don't. It also starts the clock ticking in earnest so that folks get things done faster. Before they had 2 weeks at no extra cost. Now every day beyond the first day costs them, but they can still "lock it in" as held.

No lease signing and no keys until all money is paid in full and utilities are switched over to their name, as always.

We'll see how it goes.

--184.4.xx.xx




Modified Hold Fee (by Jim in O C [CA]) Posted on: Jun 29, 2022 4:48 PM
Message:

I will hold for 3 weeks after all move in costs are received. I will wait for a potentially excellent tenant. High FICO, savings account, very good job, no smokers, no pets and the right amount of occupants for that property.

Being very selective I didnít lose a penny during Covid. --99.23.xxx.x




Modified Hold Fee (by Sisco [MO]) Posted on: Jun 29, 2022 6:12 PM
Message:

The new version is a big improvement over the old version.

Why agree to hold your house off the market? It seems that in times that leasing is slow such an agreement would be useful, but currently lease ups are not slow to fill.

What are you attempting to achieve with holding agreement? --149.76.xxx.xxx




Modified Hold Fee (by melinda [MD]) Posted on: Jun 29, 2022 6:37 PM
Message:

We collect the "holding fee" which later turns into the deposit. Sick of big talkers saying that they want the house and then not completing the deal. "holding fee" paid upon approval of application. --24.233.xxx.xx




Modified Hold Fee (by Ed [CA]) Posted on: Jun 29, 2022 7:32 PM
Message:

Sid, I've been doing your new process for years. If someone balks at the deposit, I simply say "I'm in the business of renting properties, not holding them". Everyone kinda nods their head and pony up to the bar. --108.201.xx.xx




Modified Hold Fee (by 6x6 [TN]) Posted on: Jun 29, 2022 8:37 PM
Message:

Thank you for sharing your new process, Sid, and thanks for the example. You are one smart cookie. I will look for future updates as to how this goes. --73.120.xx.xxx




Modified Hold Fee (by David [MI]) Posted on: Jun 29, 2022 8:46 PM
Message:

I do not hold properties, ever. I give them 3 days to get everything together (funds, renters insurance, vet docs, utilities transfer) . I continue to show and take appliances. If they can't get it together in 3days, I reserve the right to go with someone else.

--174.240.xxx.xx




Modified Hold Fee (by zero [IN]) Posted on: Jun 30, 2022 1:11 PM
Message:

Years back I would offer first right of refusal. Gave people 24 hours to decide and get the funds.

Lost a lot of new tenants because of that.

Now if the prospective tenant is a little short I work with them by making the rent bi-weekly or even weekly. Gets them to the next payday where they are liquid enough to get it all done.

I kind of like the idea of charging the hold fee, I need to look into this a little more.

I have also been known to split the deposit to help with getting utilities on and such. In the past I allowed them to make small payments. That bit me too many times so no longer allow that. --107.147.xx.xxx




Modified Hold Fee (by David [MI]) Posted on: Jun 30, 2022 1:56 PM
Message:

a tenant who is "a little short" on the move-in funds is going to be "a little short" on the rent. THat is one of my screening : can the tenant quickly come up with 3 months rent? --50.4.xxx.x




Modified Hold Fee (by David [MI]) Posted on: Jun 30, 2022 1:57 PM
Message:

Now to clarify, you don't have to kick every applicant to the curb after a certain time if they can't come up with the funds. You can just tell them it's not guaranteed theirs anymore if another qualified applicant comes along. --50.4.xxx.x




Modified Hold Fee (by zero [IN]) Posted on: Jul 1, 2022 3:49 PM
Message:

While I admit I have been burned in the past starting with short tenants, for the most part there is a lot of cost in moving and I realize that.

If the people had the mental fortitude to save enough for first, last, deposit, utility deposits and everything else associated with moving then maybe they wouldn't be renting anyhow.

On a case by case basis I have found that helping someone out has paid me back with good, honest tenants that follow the rules. I realize that I am taking risks by doing this and have not made it happen every time I have a new prospective tenant. They know I am doing them a favor and it is a one time deal.

Had one tenant whose girlfriend collected a settlement for a vehicle accident. They knew they would blow thru the money so they paid a year in advance. Only time that has happened to me. Unfortunately they brought in a dog illegally which started issues with the neighbor. I said the dog had to go. They said they would rather leave. I took them up on it and they were gone.

Hated giving so much money back to them, but they just wouldn't work out.

People are strange and everyone is a little different. --107.147.xx.xxx



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