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Ok what if renter gives deposit, sign deposit but no lease was sign, and changes mind 1week 1/2 later.. renter loss their deposit? ..
The deposit you gave was likely a holding deposit which basically took the unit off the market until you signed the lease. Holding deposits aren't refundable and cover the expenses of the landlord in putting the unit back up for rent.
Yes, if the renter gives a deposit but then changes their mind, they lose the deposit.
I had a new tenant that paid her security deposit. She backed out and said she can't move the day before she was to move in. We turned so many people away that called and wanted to see the apartment, all were told the apartment was no longer available. We have lost income due to her changing her mind. The property is in Pennsylvania. We have not signed a lease with her yet. Are you sure we don't have to return her deposit? Like I said this is in PA. I hear the laws are different in each state.
I had a new tenant that paid her security deposit. She backed out and said she can't move the day before she was to move in. We turned so many people away that called and wanted to see the apartment, all were told the apartment was no longer available. We have lost income due to her changing her mind. The property is in Pennsylvania. We have not signed a lease with her yet. Are you sure we don't have to return her deposit? Like I said this is in PA. I hear the laws are different in each state.
State landlord tenant laws are linked in the first "sticky" on this forum. If what she gave you was a "security deposit" then you have to return it. A security deposit is not a holding deposit - it's a deposit which the landlord holds until the lease term is over to cover any damages or unpaid rent.
If she had signed a lease with you, you would have been able to hold the security deposit and apply it to unpaid rent since she breached the contract. If the deposit was receipted as a holding deposit, you can retain it.
Read your state laws and, if still in doubt, consult an attorney.
I had a new tenant that paid her security deposit. She backed out and said she can't move the day before she was to move in. We turned so many people away that called and wanted to see the apartment, all were told the apartment was no longer available. We have lost income due to her changing her mind. The property is in Pennsylvania. We have not signed a lease with her yet. Are you sure we don't have to return her deposit? Like I said this is in PA. I hear the laws are different in each state.
Even without a signed lease, the tenant has at minimum a month to month rental obligation, a contract having been entered into as evidenced by the deposit. If she backed out on that obligation you can withhold the first months rent from the deposit and return the rest if any.
Even without a signed lease, the tenant has at minimum a month to month rental obligation, a contract having been entered into as evidenced by the deposit. If she backed out on that obligation you can withhold the first months rent from the deposit and return the rest if any.
You may well be right but some states are tricky about that and I still think that if this was designated as a security deposit the OP should check with legal counsel to be on the safe side. A local landlord association may be able to answer the question, too.
OP, it's a good landlord lesson to learn. If you take a holding deposit, document it as such. That will hold the unit for a few days until a lease is signed and is then deducted from the monies owed at signing. If the prospective tenant backs out you keep it, basically - again, state law prevails. An application fee is for a background check and is not returned or credited. A security deposit is as was stated earlier and should be collected when the lease is signed along with first month's rent and last (if that's common in your area).
OP, if the landlord accepts a holding deposit and then can not provide the unit and has to cancel, then yes, the deposit goes back to the renter.
If the landlord thought that the unit would be available and the moving-out tenant dug in and didn't vacate, there is no unit to give to the new renter, so deposit gets returned to the new (now the non) renter. Other things can happen to make the unit unavailable. Unexpected damage from the departing tenants, unexpected structural damage, problems with the occupancy license, a temper tantrum from Mother Nature.
If the landlord changes his mind because he discovers that there is a deal-breaking lie on the application, then the tenant who is rejected might not get his deposit back. But if it is entirely a problem on the landlord's end, then deposit gets returned. If you neglect to tell me that your drug felon husband is getting out of prison and moving in with you, then you will find that there is no longer a place waiting for you, and I have no legal obligation to rent to you. The applicant has basically committed fraud and loses legal standing.
You may well be right but some states are tricky about that and I still think that if this was designated as a security deposit the OP should check with legal counsel to be on the safe side. A local landlord association may be able to answer the question, too.
OP, it's a good landlord lesson to learn. If you take a holding deposit, document it as such. That will hold the unit for a few days until a lease is signed and is then deducted from the monies owed at signing. If the prospective tenant backs out you keep it, basically - again, state law prevails. An application fee is for a background check and is not returned or credited. A security deposit is as was stated earlier and should be collected when the lease is signed along with first month's rent and last (if that's common in your area).
A security deposit is the money the tenant gives to the landlord when first renting the unit. A security deposit is intended to cover damages that might be caused by the tenant during the term of the lease. It may also be kept by the landlord to cover unpaid rent.
I am not aware of any state that does not allow the landlord to deduct unpaid rent from a security deposit.
I am not aware of any state that does not allow the landlord to deduct unpaid rent from a security deposit.
I'm aware of that and, as I said earlier, you may well be right about this particular circumstance but to me it's still a gray area. The lease was never signed and the tenant never moved in. I would defer to the advice of legal counsel.
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security deposit not refundable
