Why would you tender a security deposit with a rental application? (Austin: real estate, apartment)

[XLadylawX]

We were just informed that when we apply to rent a house through a property manager in Austin, we must submit not only the application fee but also the security deposit. Not that I think we will be rejected but isnt it premature to hand over a substantial sum of money before you are even approved?

[Jennibc]

We didn't have to do that when we were looking for a rental when we first moved here, but we didn't rent through a "property manager" either. After we were approved we wrote the deposit check. I am assuming that they don't deposit it until you have been approved.

[texastrigirl]

I have a client who is a real estate broker and that is standard procedure in their case. And jennibc is right...they don't cash your check until you have been approved. Just be sure you are using a reputable company.

[kelly katsus]

Just remember...Everything IS NEOGOTIABLE! I would suggest you always have representation when either leasing or purchasing a home. Not just because I am an agent, but because then the landlord or property manager has accountability to someone other than just the Renter. Just a suggestion.

[jentaylor]

A rental company insisted upon that when we were looking to rent a house. Before we could even wire them the money (as we had returned to Cincinnati at that point), they turned around and rented the house to someone else. Renting a house in Austin is a huge pain in the ass, but I did finally find a nice reasonable realtor/property manager who didn't want to totally 100% screw us. And our credit scores are in the low 800s so I was a bit put off by the harsh treatment.

Also, be sure to google the rental property company to make sure they don't do things like keep your deposit no matter what. We almost handed over a $2,000 deposit to a property manager who we learned does not return deposits and tenants have to sue to get their money back.

[passionatearts]

It's pretty standard procedure for property management companies to request that you pay a security deposit before signing a lease. They want to make sure that you're committed to renting the property. When I was managing my dad's rental properties, we learned the hard way that some people will back out of a lease at the last minute. So, our policy was that we would not take anything off the market until we had at least a security deposit in our hands.

[Jennibc]

Originally Posted by passionatearts

It's pretty standard procedure for property management companies to request that you pay a security deposit before signing a lease. They want to make sure that you're committed to renting the property. When I was managing my dad's rental properties, we learned the hard way that some people will back out of a lease at the last minute. So, our policy was that we would not take anything off the market until we had at least a security deposit in our hands.

She's asking about having to fork over the money with the application fee. It seems like the company could say, after approval you have 24 hours to get the deposit to us or we can rent to someone else.

[mlassoff]

It's the Austin Real Estate community run amock. Too much power-- Too big of a lobby in ABOR and AAA (AUstin Apartment Association).

It was so easy to rent in Connecticut comparitively. I paid a deposit equivilent to 1/2 months rent, the landlord called my references, checked my credit and I signed a lease the next day. I'll pay him the first months rent when I get the keys on October 1. The agents "Professionalism" is what makes these things so difficult. They start with the assumption that every renter is a deadbeat, felon who will destroy the place and won't pay rent and work from there.

[calel]

I don't recall having to write the security check until after the app was approved, just a small app fee to cover the credit check. The whole deal was tendered by a real estate agent, too. Maybe he wasn't following the proper procedure; he seemed pretty flighty during the whole thing...

[saharaga]

I used to be a property manager and the company I worked for also required a security deposit and a signed lease when an application was submitted. It was explained that the lease would only be effective if they were approved. If they weren't approved, they would get their security deposit back and the lease would be void.

We started doing this because so many people would fill out applications and decide to move somewhere else....essentially wasting our time.