Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
There is a reason why most experienced landlords say that you have to be strong and tough. If you give an inch people take a mile. We had a home that we were trying to rent around New Years/Christmas. A tenant applied using smart move and everything looked good. She had good credit, work history, and no evictions. She asked if we could hold the home till she got paid next. 2 weeks? Sure no problem. She was supposed to move in tonight. I called her and she told me that she had a car problem and couldn't afford deposit or first months and was sorry for wasting my time. I literally turned down 10-15 interested parties because it was "already rented". Learn from my mistake!! I know I sure did.
Madison Heights, MI · Member since 2014 · 471 posts · 132 votes
11y
AFAIK, in MI it is illegal to take a deposit to hold a unit. For this reason, I always refuse and say that the first qualified applicant that has the $$$ can move in.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
11y
Personally I don't "hold" a unit. They sign the lease and pay some rent but don't get the keys until all money (security deposit and 1st month's rent) is paid.
I had a conniving tenant threaten to sue me over the "holding fee". I'm sure I would have won but decided that my time was more valuable than being drug into small claims court or worse yet full court (by free lawyer friend of prospect tenant). After that no more "holding fee." Now it's a signed lease and money in the bank. If they want to play hard ball, I'll evict them and mess up their credit. My tenants typically care about their credit.
For me deposit has to be in my account prior to removing the listing. Then prorated rent deposited prior to getting keys. Be consistent and you'll have no problems.
Exactly. I do this too. And the one time a potential tenant backed out of the apartment I ended up keeping the deposit, and renting the apartment to the second tenant who applied.
Just make sure your application makes it clear that a deposit only holds the apartment untill they move in at which point the deposit converts to a security deposit or something like that.