Is it ok to get potion of security deposit before lease agreement? : ezLandlordForms

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Is it ok to get potion of security deposit before lease agreement?

Sachin S

started a topic over 6 years ago

Hi, I'm taking portion of security deposit from a potential tenant before his background check and lease signing. Is this ok? Are there any legal ramifications? Thanks, Sachin

4 Comments

Scott H

said over 6 years ago

call it a holding fee. Have them sign something like this

Scott H

said over 6 years ago

Receipt of Holding Fee This receipt is acknowledgment of receiving $XXXX Holding Fee from XXXXX (Applicants) to hold the rental Home at the following address: XXXXXXXXXXXXXXX until July 1st, 2018. If the home is not available at the agreed upon date the landlord will make a full refund of the fee without interest, and with no liability or penalty to either party. This Holding Fee will be applied to the security deposit when Applicant Pays 1st month's rent and takes possession of the above-described Home. If Applicant fails to pay 1st month's rent and/or take possession. The landlord may deduct any additional costs to find a new tenant from the holding fee including but not limited to: advertising, realtor fees, and the daily cost of vacancy.

Scott H

said over 6 years ago

Sorry, the spacing/return formatting doesn't stay when you post on here.

Sachin S

said over 6 years ago

Thank you so much! This is very helpful.