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Ask them to explain what the $500 is for as it seems out of line and out of the blue. Perhaps it is a clerical error of some sort.
If they insist that you pay this before your name is on the lease, then you can decide if it's worth it or not.
BTW, I would encourage you to say that you are building up a credit history as the reason for getting your name on the lease as you are actually doing that.
Yes, they want that simply to put my name on the lease as a lessee even though they initially told me as long as my mother name remains on the lease, I only needed to pay a $25 app fee.
I paid the $25 app fee and submitted bank statements showing I receive monthly direct deposits over $5,000 and had $43,000 in my account at that time. Then all of a sudden, today they called to tell me I needed to pay the $500 deposit also or else I cannot have my name on the lease.
So, I was wondering from a leasing agent who's familiar with this--is that normal to want a cosigner name on the lease who has been renting there for over a year AND now also wanting $500 after checking my income...???
Just seems fishy, but I wanted to know for sure before thinking they are up to no good.
2 bedroom apartment cost $650 monthly. I earn over $5,000 monthly and mother earns $3,700.
Sounds like it happened after you filed your application. They ran your credit after receiving your application. Because of your lack of a credit history they are charging you an additional deposit. People who only pay cash can deemed a flight risk. It's pretty common that a security deposit fee will be added after a credit check. Or that the fee will increase.
Have you considered getting a credit card? One with rewards that you pay off every month would help you build a credit history. Your credit history makes the world go round.
If I still need to pay a $500 deposit, then what's the purpose of having my mother name on the lease? Ya know? I'm just learning about all this...
In my experience, if you are 18 and older you MUST be on the lease. Credit history is not checked for secondary applicants or everyone on the lease . SO basically they are trying to rip you off. Don't pay it.
It will be better off if your mother still retains the lease and you are cosigner. And if vice versa, they charge for lack of credit history..That one should be refundable, but you may have a non refundable for 150-200 as well, check that out.
In the properties we own everyone over 18 must be on the lease and they have security and credit checks run on them. Failure to provide information on tenants would be breaking the lease. If a tenant does not meet our basic credit requirements but has alternatively shown they may be able to pay the lease (alimony being the most common non reported income) we will collect and additional deposit (separate from the security despoit) and return it after a year.
Even with this policy we plan on a certain amount of loss based on non performance by tenants. The deposit helps reduce that loss. Even if the OP is the 'good' tenant that makes the payments etfc on time there are enough bad tenants who string you along and end up costing time and money.
When you pay the app fee, they have not yet checked your credit. Adding $500 to the deposit is a normal reaction to lack of credit. Just take a lot of pictures and don't worry about it.
Great thinking; I will let them know and see what they say.
Quote:
Originally Posted by GotHereQuickAsICould
Ask them to explain what the $500 is for as it seems out of line and out of the blue. Perhaps it is a clerical error of some sort.
If they insist that you pay this before your name is on the lease, then you can decide if it's worth it or not.
BTW, I would encourage you to say that you are building up a credit history as the reason for getting your name on the lease as you are actually doing that.
Hi, yes, I realize I can only write off part of the apartment as office space. I've been self-employed since I've been working (never worked a regular job) and I usually take 30% as office space. I know many others who also do 30% to 40% of their home.
Note: Different IRS ballgame here. If your mother lives there too, then she technically occupies 50% of the apartment. You could only deduct 30% of your 50%.
I've thought about it, but I hate the whole interest thing. I don't like paying more money than what is required if ya know what I mean.
It's sad that this is the way the world works. It would be nice if you could just use your bank statements to show that you are reliable, because then they would see where I paid everything off in cash ($2900 bedroom set, $3600 living room set, $1300 computer, $12000 cash car, etc.) I'm more of a save and pay cash person. When I read reviews about this apartment complex online, many tenants complained of not receiving their deposit back...
I just hate the idea of paying more for my purchases, so always avoided credit cards.
Quote:
Originally Posted by ss20ts
Sounds like it happened after you filed your application. They ran your credit after receiving your application. Because of your lack of a credit history they are charging you an additional deposit. People who only pay cash can deemed a flight risk. It's pretty common that a security deposit fee will be added after a credit check. Or that the fee will increase.
Have you considered getting a credit card? One with rewards that you pay off every month would help you build a credit history. Your credit history makes the world go round.
The plan was for me to pay the full amount monthly then my mother would just give me cash for her part. I've known many people who do it this way for years with no problem, so not sure. I will be meeting with a tax professional soon and be asking the best way to go about things. In the past, I've done everything on my own, but now that my money is increasing, I want the most breaks as possible.
Quote:
Originally Posted by nightlysparrow
Note: Different IRS ballgame here. If your mother lives there too, then she technically occupies 50% of the apartment. You could only deduct 30% of your 50%.
I've thought about it, but I hate the whole interest thing. I don't like paying more money than what is required if ya know what I mean.
It's sad that this is the way the world works. It would be nice if you could just use your bank statements to show that you are reliable, because then they would see where I paid everything off in cash ($2900 bedroom set, $3600 living room set, $1300 computer, $12000 cash car, etc.) I'm more of a save and pay cash person. When I read reviews about this apartment complex online, many tenants complained of not receiving their deposit back...
I just hate the idea of paying more for my purchases, so always avoided credit cards.
We pay our bill off every month. We haven't paid a nickel's worth of interest in I can't tell you how long.
We now have AmEx through Costco. In addition to no interest, we'll get a nice rebate in the next month or so.
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