How to turn down a tenant I already accepted a holding deposit for

phila, a · Member since 2016 · 23 posts · 0 votes

Hi, I was looking for advice. I recently accepted a prospective tenants application for one of my rentals. Originally they said they wanted to move by October 1st. Then after accepting the application, they wanted to change it to the middle of October. I accepted and prorated the amount that would be needed to move in. When meeting for the holding deposit the prospective tenant was 40 min late due to work and not being able to find place to get a money order. We also signed an agreement that if the tenant couldn't move in by the date agreed upon they would forfeit the holding deposit. Just now the tenant has emailed saying that they would like to move in Nov 1st instead, to make sure they have the full amount needed to move in. I let them know that it wasn't what I had agreed to and I would have found someone to move in sooner if that was the case, and would find someone else if they couldn't move in by the date agreed upon. They got back to me and said they would have all the money the evening we agreed upon. However I am no longer confident that this prospective tenant will be able to manage themselves and pay on time. I want to give them their holding deposit back and deny leasing to them. How can I do this in a professional way and what reason do I give them for denying them the rental after I already accepted them?

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Kevin Sobilo

Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.

It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.

Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?

Also, why would you prorate move-in money?

If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.

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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Samantha Coppinger:

Be honest with them. Their behavior indicates they are not responsible and don't have the finances to afford your rental. Tell them you are canceling the agreement and putting it back on the market. That gives them a full month to find something they can afford.
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Samantha Coppinger
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phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.
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Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.
Or rather the lease she will sign
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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

It's business, they asked for a 2nd change and you said no and they said ok. So, they are sticking to the agreement as long as they meet whatever the current agreement is which sounds like mid October.
So, this is about your feeling about that exchange (communication) as they have not yet failed to perform what they promised since it isn't mid October yet.
You are NEVER certain tenants will perform up to the lease they sign. The SAME WAY a tenant is NEVER sure a landlord will live up to their end of the lease.
Here is a completely different example. Maybe 6 years ago, I had a variable rate mortgage with a local lender and rates had dropped but I was not due for a rate adjustment for a few years. It was enough of a difference that I might choose to refinance the loan.
First, I went to the lender and asked if we could do a loan modification instead of me shopping around for a new loan that might not be with them at a lower rate and for a modest processing fee they did that.
I asked for a change in our agreement and they said yes! That is what happened between you and your prospective tenant. They asked for a change to the agreement twice. You said yes to the first change. The fact that you said no the second time doesn't mean they will not perform just like I would not stop paying my loan if my lender had said no.
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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

One more thing to think about. If you do try to break your agreement like you want. YOU will be the one who did not live up to the agreement!
So, the EXACT thing you think this prospective tenant MIGHT do, is what YOU YOURSELF ACTUALLY WOULD BE DOING!
Doesn't seem so crazy when you now have to face that you behind the scenes are acting as inconsistent as they have been to your face. Pretty ironic, isn't it?!?
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Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
1y
People need to stop using the term "agreement" like my friend and I have an agreement to meet at the movie theater at 7 PM. What we have here is a CONTRACT. A legally binding contract. Both parties need to fulfill the terms of the contract.
1 Reply
Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
1y
Just give them back the money, don't hand over keys and let them know that you won't be moving forward with them
Better to get rid of them now then get stuck
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Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Kevin Sobilo:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

One more thing to think about. If you do try to break your agreement like you want. YOU will be the one who did not live up to the agreement!
So, the EXACT thing you think this prospective tenant MIGHT do, is what YOU YOURSELF ACTUALLY WOULD BE DOING!
Doesn't seem so crazy when you now have to face that you behind the scenes are acting as inconsistent as they have been to your face. Pretty ironic, isn't it?!?

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Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

One more thing to think about. If you do try to break your agreement like you want. YOU will be the one who did not live up to the agreement!
So, the EXACT thing you think this prospective tenant MIGHT do, is what YOU YOURSELF ACTUALLY WOULD BE DOING!
Doesn't seem so crazy when you now have to face that you behind the scenes are acting as inconsistent as they have been to your face. Pretty ironic, isn't it?!?
Well not if I signed paperwork saying If I break it for any reason I give back the deposit. Sooo covered myself there. Stop turning it on me and actually answer what I asked in the initial post about how to professionally turn them down now. Thanks anyway enjoy your day!

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Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Nathan Gesner:

Quote from @Samantha Coppinger:

Be honest with them. Their behavior indicates they are not responsible and don't have the finances to afford your rental. Tell them you are canceling the agreement and putting it back on the market. That gives them a full month to find something they can afford.
Thank you, I was thinking this is best. I just never ran into this type of situation before.
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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
Quote from @Samantha Coppinger:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

One more thing to think about. If you do try to break your agreement like you want. YOU will be the one who did not live up to the agreement!
So, the EXACT thing you think this prospective tenant MIGHT do, is what YOU YOURSELF ACTUALLY WOULD BE DOING!
Doesn't seem so crazy when you now have to face that you behind the scenes are acting as inconsistent as they have been to your face. Pretty ironic, isn't it?!?
Well not if I signed paperwork saying If I break it for any reason I give back the deposit. Sooo covered myself there. Stop turning it on me and actually answer what I asked in the initial post about how to professionally turn them down now. Thanks anyway enjoy your day!

You just don't like that what I'm saying makes sense. You are holding the flakiness against them while trying to justify doing the exact same thing yourself. Let's face it YOU would NOT rent to YOU based on what you're saying here.

I hope you consulted a lawyer before adding that out clause for yourself. Just because you add something to an agreement doesn't mean its legal or enforceable. It may be, but I would want to be certain.

You accepted them and now less than 2 weeks before move-in you want to cancel on them. If I was them, I would sue you for damages. Oral agreements for rentals are allowed in most places but default to month to month. So, if I was the tenant I would be suing you for liquidated damages because you very well may be costing them money and causing them harm.

You are talking about jerking them around about one of the most important things in their life. So, its no small thing to be doing to someone. So, stop thinking this is all about you and not feeling like you are responsible for any of this.
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James Mc Ree
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
1y
You have a legally binding lease. You can walk away from it and the tenant can sue you to hold you accountable to the lease. They can also sue you for damages if they incur temporary housing costs, feel you discriminated against them, etc. Bad idea.
It is common for new tenants to ask for an change to the move in date ahead of the start of a lease. I've had it happen several times. The way to handle this is to tell your tenant they can move in anytime they want and the lease starts Oct 15, since you already agreed to that change. They can move in Oct 15, Nov 1 or whenever. That is up to them, but they start paying as of Oct 15.
1 Reply
Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Kevin Sobilo:

Quote from @Samantha Coppinger:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

Quote from @Samantha Coppinger:

Quote from @Kevin Sobilo:

@Samantha Coppinger, I would say you don't until they actually don't live up to what they agreed to. You agreed to change the move-in date to mid-October, so until they fail to meet that date your "feelings" about them don't give you the right to take any action.
It isn't reasonable in any way to break an agreement because of how the other party communicates. Actions determine whether you have cause to terminate an agreement, for example not paying the rent.
Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?
Also, why would you prorate move-in money?
If a tenant moves in on October 15th, they pay the security deposit and a FULL months rent. Then, I prorate the rent and apply the overage to November. So, come November 1st, they only owe the remainder for that month.
I never thought about doing proration, that way. I did the prorated for the days that month they would actually be living there. I just thought it was fair. And it's not just about the communication, it's about changing the move In date and being able to pay. I was looking for October 1st move in and she was ok with that until she wasn't. I agreed once. I didn't agree a second time. Her trying to move the date around multiple times shows she can't stick to an agreement she signed. How can I be sure she will stick with a lease she signed.

One more thing to think about. If you do try to break your agreement like you want. YOU will be the one who did not live up to the agreement!
So, the EXACT thing you think this prospective tenant MIGHT do, is what YOU YOURSELF ACTUALLY WOULD BE DOING!
Doesn't seem so crazy when you now have to face that you behind the scenes are acting as inconsistent as they have been to your face. Pretty ironic, isn't it?!?
Well not if I signed paperwork saying If I break it for any reason I give back the deposit. Sooo covered myself there. Stop turning it on me and actually answer what I asked in the initial post about how to professionally turn them down now. Thanks anyway enjoy your day!

You just don't like that what I'm saying makes sense. You are holding the flakiness against them while trying to justify doing the exact same thing yourself. Let's face it YOU would NOT rent to YOU based on what you're saying here.

I hope you consulted a lawyer before adding that out clause for yourself. Just because you add something to an agreement doesn't mean its legal or enforceable. It may be, but I would want to be certain.

You accepted them and now less than 2 weeks before move-in you want to cancel on them. If I was them, I would sue you for damages. Oral agreements for rentals are allowed in most places but default to month to month. So, if I was the tenant I would be suing you for liquidated damages because you very well may be costing them money and causing them harm.

You are talking about jerking them around about one of the most important things in their life. So, its no small thing to be doing to someone. So, stop thinking this is all about you and not feeling like you are responsible for any of this.

0 Reply
Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @James Mc Ree:

You have a legally binding lease. You can walk away from it and the tenant can sue you to hold you accountable to the lease. They can also sue you for damages if they incur temporary housing costs, feel you discriminated against them, etc. Bad idea.
It is common for new tenants to ask for an change to the move in date ahead of the start of a lease. I've had it happen several times. The way to handle this is to tell your tenant they can move in anytime they want and the lease starts Oct 15, since you already agreed to that change. They can move in Oct 15, Nov 1 or whenever. That is up to them, but they start paying as of Oct 15.

Actually I don't have any lease at all yet. It was just a signed paper about the holding deposit, that if the tenant doesn't move in by the date it's forfeited and if for any reason the landlord decides not to rent then the landlord has to give back the holding deposit.
0 Reply
Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
Quote from @Samantha Coppinger:

Quote from @James Mc Ree:

You have a legally binding lease. You can walk away from it and the tenant can sue you to hold you accountable to the lease. They can also sue you for damages if they incur temporary housing costs, feel you discriminated against them, etc. Bad idea.
It is common for new tenants to ask for an change to the move in date ahead of the start of a lease. I've had it happen several times. The way to handle this is to tell your tenant they can move in anytime they want and the lease starts Oct 15, since you already agreed to that change. They can move in Oct 15, Nov 1 or whenever. That is up to them, but they start paying as of Oct 15.

Actually I don't have any lease at all yet. It was just a signed paper about the holding deposit, that if the tenant doesn't move in by the date it's forfeited and if for any reason the landlord decides not to rent then the landlord has to give back the holding deposit.

Exactly, and I am not a lawyer, but the "paper" you signed about the holding deposit sounds like a "bilateral contract" where in exchange for this deposit you agree to provide them with a lease. However, since you have this "out clause" in the agreement it isn't "bilateral" because you aren't required to perform up to your end. I suspect that clause might be improper.
When someone writes a contract and a section is ambiguous of unenforceable because that section is improper, I believe that section legally is supposed to be interpreted in favor of the party that did not write the document (the tenant).
So, if I am correct, that document may not be doing you any good to you at all because of that.
Again, I'm not a lawyer but let's be honest that holding document is shady of you to use with that out clause. I'm sorry, but no other way to put it when you take money from someone with no promise to live up to what you're accepting money about.
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James Mc Ree
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
1y
Good point. I assumed you signed a lease when you said you accepted the application and took the deposit. In this case, you just need to adhere to whatever you agreed to with your prospective tenant. My apology for assuming you signed a lease.
I tell my prospects their deposit is non-refundable if they don't adhere to the written terms of the contract I use for the deposit. That would allow you to keep the deposit if they don't adhere to the agreement.
0 Reply
Ran Fridman
Property Manager · Illinois, Indiana & Wisconsin but call center all 50 states · Member since 2020 · 92 posts · 32 votes
1y
Hi Samantha: Sorry to hear about your dilemma my friend. I'm Ran Fridman, and I have been in the property management business for over 15 years. Having a property manager is the solution for dealing with matters that occur with problematic elements of our population, and in alleviating yourself from these kind of stressful encounters. Prescreening tenants is the best way to handle situations before they happen. If they have low credit scores, shady history, and lots of heartbreaking stories, they don't have the money now, and they won't have the money after, and you will be sad to discover this one month down the road. Simply write the tenant prospect the following letter and be done with it:
Hi [Prospective Tenant’s Name],

Thank you for your interest in renting our property. After careful consideration from our financial department, we have decided to return your holding deposit and not proceed with the lease. This decision is based on the need for timely and reliable communication and payments, which are crucial for a successful landlord and tenancy relationship. I wish you the best in finding a suitable home.

Best regards,
[Name of your Company]
1 Reply
Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Ran Fridman:

Hi Samantha: Sorry to hear about your dilemma my friend. I'm Ran Fridman, and I have been in the property management business for over 15 years. Having a property manager is the solution for dealing with matters that occur with problematic elements of our population, and in alleviating yourself from these kind of stressful encounters. Prescreening tenants is the best way to handle situations before they happen. If they have low credit scores, shady history, and lots of heartbreaking stories, they don't have the money now, and they won't have the money after, and you will be sad to discover this one month down the road. Simply write the tenant prospect the following letter and be done with it:
Hi [Prospective Tenant’s Name],

Thank you for your interest in renting our property. After careful consideration from our financial department, we have decided to return your holding deposit and not proceed with the lease. This decision is based on the need for timely and reliable communication and payments, which are crucial for a successful landlord and tenancy relationship. I wish you the best in finding a suitable home.

Best regards,
[Name of your Company]
Thank you, that is very helpful!
0 Reply
Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @James Mc Ree:

Good point. I assumed you signed a lease when you said you accepted the application and took the deposit. In this case, you just need to adhere to whatever you agreed to with your prospective tenant. My apology for assuming you signed a lease.
I tell my prospects their deposit is non-refundable if they don't adhere to the written terms of the contract I use for the deposit. That would allow you to keep the deposit if they don't adhere to the agreement.
Yes it is non refundable if they back out, and I do appreciate your responses!
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Samantha Coppinger what does your Holding Deposit form say about all this?
Recommend:
1) You learn from this and update your form/contract to address it.
2) Change the word "deposit" to "fee". Legally, anything called a deposit is inherently refundable. So, a prospect could sue based upon this and a judge would have to decide. Avoid this and just call it a fee that MAY be refunded under specific scenarios.
[email protected]248-209-6824
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Samantha Coppinger
OP
phila, a · Member since 2016 · 23 posts · 0 votes
1y
Quote from @Drew Sygit:

@Samantha Coppinger what does your Holding Deposit form say about all this?
Recommend:
1) You learn from this and update your form/contract to address it.
2) Change the word "deposit" to "fee". Legally, anything called a deposit is inherently refundable. So, a prospect could sue based upon this and a judge would have to decide. Avoid this and just call it a fee that MAY be refunded under specific scenarios.

Thank you, I will change that wording immediately! The prospective tenant has backed out herself and I did refund it this time. I informed her the next landlord that takes a non refundable deposit won't give it back and to make sure she's actually ready before signing any paperwork. It was another learning lesson for the both of us for sure! And I thank everyone that kindly provided their knowledge with me!
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