Renter signed holding deposit that has a forefeit clause where we keep the money.

[Cali Skier]

Hi,  

We took a property off the market 6 weeks ago because we landed some tenants that paid a deposit / holding fee.  They signed an agreement to comit to signing the lease or forefeit the money.  Aug 1st is the day they have to sign.   There are some indications that they may not sign, some personal family stuff that I don't want to get into.  They wanted to start early, but then no, then they have stopped texting.  I believe it's my right to keep the deposit, is there some law or some thing I don't know about that would say otherwise? 

Aug 2 I am relisting the house if I don't have a signed lease.  

[Nathan Gesner]

Quote from @Cali Skier:

I agree with Mike that you should be fine.

I recommend you tighten your standards for future renters.

1. Don't hold a vacant property for someone for more than two weeks. After that, they have to pay rent, utilities, and other costs even if they aren't going to occupy for another month. In your case, you are holding the property for nearly two months and you probably have a deposit of one month's rent, which means you will lose at least a month of rent, two months of utilities, the cost of lawn care, etc.

2. Make them sign the lease or a Holding Agreement immediately with payment of the deposit, and make sure it is clear that they will forfeit funds if they do not start renting on a specific date.