Rent and Deposit to hold an apt?

[Zeplon]

I have a question about a situation that just came up for the first time in my 18 yrs. of rentals.

I had someone give me a prorated rent check plus half of the deposit required for move in to hold the apt. for them. They got one of the two utilities in their name. Now a week later they have backed out and want ALL of their money back. In the meantime, I have told numerous people it has been rented and have taken the ad out of the paper. What can I legally do with the money? I told them when they gave it to me to hold the apt. that if they backed out I would have to keep a portion of it. Can I legally keep a portion of it to cover the days it sits vacant until it is re-rented? I would like to charge them at minimum, daily rent until the apt. rents and the cost of running an ad in the paper again.

Advice please...??

 

[army judge]

I have a question about a situation that just came up for the first time in my 18 yrs. of rentals.

I had someone give me a prorated rent check plus half of the deposit required for move in to hold the apt. for them. They got one of the two utilities in their name. Now a week later they have backed out and want ALL of their money back. In the meantime, I have told numerous people it has been rented and have taken the ad out of the paper. What can I legally do with the money? I told them when they gave it to me to hold the apt. that if they backed out I would have to keep a portion of it. Can I legally keep a portion of it to cover the days it sits vacant until it is re-rented? I would like to charge them at minimum, daily rent until the apt. rents and the cost of running an ad in the paper again.

Advice please...??

Unless you had a written contract, you'll make things easier on yourself by giving the person back their money, all of it.
Without a contract, you have no legal reason to keep any portion of their money.
If you do, the person will probably sue you.

Why not tell the person what financial damages they have caused you.
Let them know what your forbearance, on their behalf, ended up costing you in a dollar amount.
Ask them what they think they should offer you towards that loss.
Whatever they offered me, I'd take (even if that was nothing).

Actually, I wouldn't be asking them the question.
I have such a provision written into my lease agreements.

I wouldn't say anything about taking them to small claims court?
You can do that if you feel the need.
I'd advise against it, and just move on, wiser, smarter for the next time.
Going forward, create a contract to address such situations.

 

[Zeplon]

Technically hasn't the apartment been rented to them since one of the two utilities they had put in their name?

That tells me that they have rented the apt.

 

[army judge]

Technically hasn't the apartment been rented to them since one of the two utilities they had put in their name?

That tells me that they have rented the apt.

Okay, you can believe that if you wish.


They've told you they don't want to rent the apartment.


You know that if you keep any of that money, there will be trouble.


If that's a battle you don't mind fighting, you're free to do anything you wish.


Just remember, all choices have consequences.

 

[Gail_in_Georgia]

Is there any written evidence that any of this money was a "holding fee" (i.e., a fee to take the rental unit off the market and hold it for an applicant)?

If so, such a fee is typically lost if the applicant backs out.

If not, return the money.

It is always a good idea to have the applicants sign a lease at the time they are providing the security deposit and any rent. At that point they have a legal contract with you. There is no three day "cooling off" period with real estate contracts should they change their mind later.

Gail