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Old 08-08-2021, 02:16 PM
 
Location: Illinois
3,205 posts, read 3,475,366 times
Reputation: 4239

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Quote:
Originally Posted by frimpter928 View Post
I am about to get ready to sign a lease for a new apartment, but not sure if this is a practice that I should be weary of or suspicious. It's been a while since I have had to look for a new apartment.

The apartment I want requires no security deposit which is great. Like most, you have to fill out an application with an application fee. The interesting part is that they ask you to pay the application fee, move in fee, and first month's rent all in one when submitting the application. Is that odd?

I would think that you would apply, pay the application fee. Then if you get approved, sign a lease and that is when you submit the move in fee and first month's rent. Or is this common practice? I looked them up on Yelp on the have some mixed reviews. I saw one reviewer said that she filled out the application, payed the move in fee, and the first month's rent, only to have her application rejected. She is still waiting to get her money back.

I kind of feel like telling my agent I will gladly fill out the application and pay the application fee, but prefer to see if I get approved before I also send money for the move in and first month's rent.

What do you all think?
It is standard practice in Chicago to pay the first month's rent upon application. It is considered earnest money, and it has become standard practice since escrow rules phased out the practice of collecting security deposits. You pay an application fee and the first month's rent (often paying the first month's rent to your leasing broker's office) when you apply. Upon approval, the first month's rent is applied to the first full-month of rent. You will pay your move-in fees and pet fees upon approval as well. Please do not let anyone tell you that this practice is shady. They do not know what they are talking about and will lead you to lose an apartment. The money is fully refundable.
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Old 08-09-2021, 06:57 PM
 
9,884 posts, read 9,492,567 times
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How can you pay 1st month's rent when you have not yet signed a lease?

So theres one huge bad thing. Dont sign it because once you sign, you are liable for an apartment you have not yet seen.
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Old 08-09-2021, 06:59 PM
 
9,884 posts, read 9,492,567 times
Reputation: 10059
Quote:
Originally Posted by Hiruko View Post
It is standard practice in Chicago to pay the first month's rent upon application. It is considered earnest money, and it has become standard practice since escrow rules phased out the practice of collecting security deposits. You pay an application fee and the first month's rent (often paying the first month's rent to your leasing broker's office) when you apply. Upon approval, the first month's rent is applied to the first full-month of rent. You will pay your move-in fees and pet fees upon approval as well. Please do not let anyone tell you that this practice is shady. They do not know what they are talking about and will lead you to lose an apartment. The money is fully refundable.
I dont think you are right. When you sign THE LEASE, then you might have to pay a security deposit aka 1st months rent. But just doing an application - its an application fee like maybe up to $250 and an admin fee maybe $60 and maybe a credit check $60. but first months rent (security deposit) is only due when you sign the lease.

If that money other than the admin fee, credit check fee, is paid, and the landlord denies you the apartment, it should be refundable, but NOT if the future tenant decides to say no to an available apartment. the tenent should at least have the chance to look at the apartment, what if the apartment is unsafe, broken, beat up, has bugs, rats, etc. I'd go else where if these demands are demanded.

Perhaps, and only PERHAPS some landlords are dealing with cheap apartments that are not being rented out well, and they put these stipulations on people who have lousy credit, lousy credit score, bad job history, bad renting history, evictions, criminal activity, etc, then PERHAPS that might be required.
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Old 08-09-2021, 09:30 PM
 
Location: Illinois
3,205 posts, read 3,475,366 times
Reputation: 4239
Quote:
Originally Posted by ChicagoMeO View Post
I dont think you are right. When you sign THE LEASE, then you might have to pay a security deposit aka 1st months rent. But just doing an application - its an application fee like maybe up to $250 and an admin fee maybe $60 and maybe a credit check $60. but first months rent (security deposit) is only due when you sign the lease.

If that money other than the admin fee, credit check fee, is paid, and the landlord denies you the apartment, it should be refundable, but NOT if the future tenant decides to say no to an available apartment. the tenent should at least have the chance to look at the apartment, what if the apartment is unsafe, broken, beat up, has bugs, rats, etc. I'd go else where if these demands are demanded.

Perhaps, and only PERHAPS some landlords are dealing with cheap apartments that are not being rented out well, and they put these stipulations on people who have lousy credit, lousy credit score, bad job history, bad renting history, evictions, criminal activity, etc, then PERHAPS that might be required.
You don't have to think I am right. I know I'm right because I know many leasing agents as a landlord. Almost no one does security deposits in Chicago because escrow rules require separate accounts for every tenant, an insane burden. Landlords like ICM that only do prime renters and that only own prime property also require the first month's rent upon application. It applies to the first full month of the lease. It has nothing to do with the rental price or the tenants' credit scores. It is the equivalent of earnest money in the Chicago leasing world. Beal, ICM, Becovic, MTD, TBS, and so many others require first month's rent, especially when working with a broker. They will NOT process your application without it.
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