Holding a Property with a Deposit?

7 Replies

I believe I've selected a renter for a house I own, but they aren't able to take possession for 30 days. They'll be paying rent in their apartment. Of course, I want to avoid committing the property to them, only to have them change their mind...wasting time I could've rented it to someone else.

I was planning to at least ask for the security deposit to hold the property...is there a different way that you'd do it?

Thanks!

BHB

It is pretty common to require 3 months rent when the lease is signed (first month, last month, 1 month security deposit). If they back out after signing the lease, you keep their money & use that to cover you until you are able to rent it out again (state law varies in terms of size of deposit & what you can do legally, so look at the law for the state in which this property is located and/or consult a local real estate attorney or agent that does a lot of rentals).

It is pretty common to require 3 months rent when the lease is signed (first month, last month, 1 month security deposit). If they back out after signing the lease, you keep their money & use that to cover you until you are able to rent it out again. State law varies in terms of size of deposit allowed & what you can legally keep, so look at the law for the state in which this property is located and/or consult a local real estate attorney or agent that does a lot of rentals.

It depends on the state you live in as to how much money you can accept as a Security Deposit.

In Michigan we can only accept one month and a half rent as a  Security Deposit, so check your state laws for that.

I would never hold a home for 30 days.  3 Days no longer and they have to give me the half a months rent as a deposit.  On the Holding Deposit Form, it states they have three days to pay the balance of the  amount owed  or forfeit their deposit.  So half a months rent t hold  the place for 3 days isn't too bad, in case they don't come up with the rest of the money or decide they don't want it anymore.  At  least their deposit will pay for the advertising and the potential loss of other interested parties.  However, I still continue to show the home in case they don't take the place and I tell the other interested party that I will know if the home has been taken or not in a couple of day.

Nancy Neville

I would tell them that I would continue to look for a new renter.  If the rental is still available then I would happy to have them as new renters.  

For this reason I do not hold! The house must be taken within 5 days of the signing of the lease . when I do "hold" the deposit is required along with a signed lease. lease included a break lease clause that requires 2 not has notice and 2 months fee! I enforce this as it starts the minute it is signed!

Paid first months rent, security deposit, any pet fees, and a signed lease holds the property and I take it off the market.  I have them sign a form stating if they walk away they forfeit all payments.  Until all that happens I keep showing and advertising.  

Thanks to all who've replied to my question! It appeared that I was on the path to making a rookie mistake, and because of your info, I've hit the brakes. I appreciate it.

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