Need advice please! (apartment, lease, tenant, security deposit)
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I'm getting an apartment for the very first time and so far all I have done is signed the application for the background check etc and put down a security deposit so they wont rent it out to anyone else. I have not signed a lease yet. Am I able to back out or cancel without any kind penalty? I don't care about getting the money I have put down, just wanting to know if I can cancel on renting the apartment. Any help would be great. Thanks!
I'm getting an apartment for the very first time...I have signed the application for the background check...
and put down a security deposit so they wont rent it out to anyone else.
More than just the semantics this is a pet peeve of mine:
If you aren't approved yet (credit etc) then you don't have a lease yet...
and therefore you CAN'T have a security deposit with them yet.
If handled properly... what you have is a "holding fee" that will later be applied to the SD if approved etc.
As a "fee" this amount shouldn't be more than a token amount ($100or so).
In the event they reject you or you choose to back out...
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Am I able to back out or cancel without any kind penalty?
Yes. That fee masquerading as a SD is at risk.
They may or may not (depending on local law) be obliged to refund that to you and/or do so promptly.
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I don't care about getting the money I have put down, just wanting to know if I can cancel on renting the apartment.
I'd care if I were you. But if you haven't signed a lease...
then you have no continuing relationship with them aside from the stranded money.
You leave them some money so that they will hold the apartment for you and not rent it to somebody else.
If you fail at qualifying for the place based on their criteria, they should return it to you 100%, along with a letter stating why they denied you and where they got their info.
If you walk away, consider that money gone. They get a couple of bucks and you get to find a new place. No harm done.
If you do end up renting the place, then that money should go towards that purpose. Either security deposit, or first months' rent.
If you didn't sign a lease or move in then they can't make you take the apartment, but you're probably not going to get your 'deposit' back, since you are the one backing out.
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To hold an apartment prior to lease signing we require the first months rent or close to it. Our earnest money agreement provides for forfeiture of the money if the tenant fails to sign the lease by a particular date after being notified of approval. The funds are to cover our costs of re-advertising and loss of income. We will retain all or part according to what is reasonable (meaning what a court would allow us). Example if we held an apt for a week and lost other tenants as a result, then ended up sitting on a vacant unit for weeks as a result we would keep the whole thing. But if someone changed their mind the next day we'd keep a minimal amount or none.
If we decided not to sign the lease or can't provide the unit on time we refund the whole amount.
To hold an apartment prior to lease signing we require the first months rent or close to it.
Sure, but doesn't that assume you have already approved the person to be a tenant. That they have passed the credit & background check but for whatever reason aren't ready to move in for X days/weeks. Right?
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Our earnest money agreement provides for forfeiture of the money if the tenant fails to sign the lease by a particular date after being notified of approval.
People really give you a whole months rent before even knowing if you'll allow them to move in? Where I come from we call that being a *******.
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If we decided not to sign the lease or can't provide the unit on time we refund the whole amount.
How can you decide IF you would rent to someone before doing the credit & background check?
I am having a similar problem. without a lease we putdown a security deposit and backed out but only because of the landlords refuseal to have a professional come exterminate the dwelling, and it is missing some windows. the landlord put up plywood and still expected us and our 2 little ones to move in before the window was installed. can i get the deposit back.
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