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I recently submitted a rental application and 3 days later decided that I don't like the place and backed out. It was a signed application that included a security deposit for last months rent ($1100). Now I have NOT signed a lease/rental agreement, simply submitted an application form with a deposit (wasn't even accepted).
After trying to back out the property management company informed me that I will be charged my full deposit for administrative costs. Is this legally acceptable?
The company is calling me tomorrow to discuss further, what should I say?
I am in Ontario, Canada if this makes a difference.
Well Davie, I don't know what is customary in Canada let alone what is legal so I really can't offer any help other than to suggest you find some legal aid. Perhaps start here Housing | Legal Aid Ontario
Get a copy of that application and read the holding deposit disclosure would be a good start. Most of us are in the US so we can't really help you. My applications state that once accepted any money you use for holding is forfeit in the event that you back out.
Get a copy of that application and read the holding deposit disclosure would be a good start. Most of us are in the US so we can't really help you. My applications state that once accepted any money you use for holding is forfeit in the event that you back out.
But do you ask for a deposit of $1,100 from all applicants?!! That is insane (and I say that as a LL).
And by "once accepted," do you mean once you accept the MONEY or once you accept the APPLICANT?
Quote:
Originally Posted by rentaldavie
I recently submitted a rental application and 3 days later decided that I don't like the place and backed out. It was a signed application that included a security deposit for last months rent ($1100). Now I have NOT signed a lease/rental agreement, simply submitted an application form with a deposit (wasn't even accepted).
OP, they rejected your application -- is that what you mean by "wasn't even accepted"? If so, I don't see how they can keep the last month's rent unless Ontario has VERY tenant-unfriendly rules.
Or by "wasn't even accepted" do you mean they just hadn't gotten back to you yet? Were all applicants required to submit a $1,100 payment at the time of application? If so, are they keeping everyone's? That wouldn't make sense either.
Quote:
Originally Posted by rentaldavie
After trying to back out the property management company informed me that I will be charged my full deposit for administrative costs. Is this legally acceptable?
The company is calling me tomorrow to discuss further, what should I say?
I am in Ontario, Canada if this makes a difference.
Thank you in advanced
They have "administrative costs" of $1,100 for looking over your application?!! B.S.! I cannot believe that that is legal UNLESS they DID accept you as a tenant and it was a holding deposit.
What does your paperwork say -- i.e., what you signed?
I just googled "rental deposits ontario law" and this was one of the first hits: Ontario Landlord and Tenant Law: Ontario: Illegal Security Deposits . Sounds like the last month's rent is what is collected after a tenant is ACCEPTED, which may mean you are out of luck. Can you come back and clarify?
But do you ask for a deposit of $1,100 from all applicants?!! That is insane (and I say that as a LL).
And by "once accepted," do you mean once you accept the MONEY or once you accept the APPLICANT
I don't actually take holding deposits anymore but I have left it on the application though I used to and it turns into a hassle more often than not. Once the applicant is accepted by the landlord to rent the unit is what I meant.
I don't actually take holding deposits anymore but I have left it on the application though I used to and it turns into a hassle more often than not. Once the applicant is accepted by the landlord to rent the unit is what I meant.
That makes sense. Unfortunately I can't tell from the OP's post whether all applicants had to submit the $1,100 (which seems nuts -- I can't imagine any state or province allowing the LL to keep all the funds from all the applicants) or whether he was indeed accepted by the LL to rent the place (although he says not) and the $1,100 was a holding deposit -- which he could indeed lose, at least in many jurisdictions here in the U.S. Something is off.
Yes. You need to look at the actual laws in your area and the wording of the application, but something doesn't add up.
Here in Chicago, some apartments can be highly sought after, especially in the summer, and many landlords are very careful in choosing their tenants. Thus many applications could be made for a single unit before a tenant is chosen. Typically there is an application fee of around $50 per applicant that is nonrefundable and deposits or moving fees are asked for upfront to ensure that the tenant is serious, but these are refunded in the case a tenant backs out or is rejected. I can't imagine a landlord asking for a full month application fee. That means that the landlord could be making several months of rent just off of multiple applicants.
I wasn't accepted as in I backed out before there was any agreement. On the application it did say I would forfeit my deposit if I backed out. This however is ILLEGAL and has been determined void by the Ontario Court of Appeal.
That being said, they have not been answering my emails or calls and I am getting worried.
I suggest that, if nothing else, you take away the lesson to never pay for a place that you aren't 100% certain that you want. You don't pay a deposit and have the landlord take the apartment off the market for a few days while you make up your mind whether or not you want that apartment.
I wasn't accepted as in I backed out before there was any agreement. On the application it did say I would forfeit my deposit if I backed out. This however is ILLEGAL and has been determined void by the Ontario Court of Appeal.
That being said, they have not been answering my emails or calls and I am getting worried.
Thanks for the advice.
In the states, you would be advised to send a letter via certified mail demanding your deposit back referencing the code/law that makes it illegal for them to keep your deposit. Within that letter give them a reasonable time to respond (10 days, maybe) and tell them if you don't receive a response by that deadline, you will be filing in small claims court. And follow through on that threat.
You might be best served to speak with an attorney or legal aid to assist you.
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