Do you ever accept a HOLDING DEPOSIT?

7 Replies

- Applicant is asking to give me a holding deposit because she can not move in until dec 12th. She wants me to HOLD the property..... How do i go about that? 

- Have you ever held a deposit? Is it MINE to keep for holding it for so long?

I would let that applicant know that it is in your best interest as a landlord to have your property perform as many months out of the year as possible, and that by allowing it to sit vacant you are losing money. Let her know that you are more than willing to keep the property for her as long as she compensates for that lost time (AKA start paying rent now, move in whenever you like)

EDIT:

Keep in mind that there are insurance implications with keeping the property vacant. Speak to your insurance provider for further clarification.

Originally posted by @Charlie Moore :

- Applicant is asking to give me a holding deposit because she can not move in until dec 12th. She wants me to HOLD the property..... How do i go about that? 

- Have you ever held a deposit? Is it MINE to keep for holding it for so long?

That is a little too far out.. I have held the property for prospective tenants, but for a week or so. This is like 3 weeks. You should only do it if you feel you can't find someone in 3 weeks to rent it and move in. You can create a document stating that you will not market the property for the time frame for a non refundable deposit of X. The only way you will refund the deposit is if you can't deliver the property (for some reason... Lets say the water pipe bursts and it floods the basement for e.g.) If they do sign the lease then make the holding deposit part of the security deposit.

 

Originally posted by @Bjorn Ahlblad :

@Charlie Moore we take holding fees. It is equal to rent in our case and we keep it. If the tenant wants to move stuff in we sign a lease and get a security deposit and first and last.

If they can pay the whole amount security deposit and are 100% sure they want the place, why would they even talk about fee in the first place..

I would try and find someone to move in right away.

I do take a deposit to hold a unit. I have them sign an agreement that deposits are non refundable if they change their mind or do not sign a lease on an agreed upon date.

Originally posted by @John Underwood :

I would try and find someone to move in right away.

I do take a deposit to hold a unit. I have them sign an agreement that deposits are non refundable if they change their mind or do not sign a lease on an agreed upon date.

Can you send me this? Via email? 

Originally posted by @Charlie Moore :
Originally posted by @John Underwood:

I would try and find someone to move in right away.

I do take a deposit to hold a unit. I have them sign an agreement that deposits are non refundable if they change their mind or do not sign a lease on an agreed upon date.

Can you send me this? Via email? 

 I don't save it. I just go into word and type up what I need when I need something like this.

You can also google xx template and find an example of almost anything.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here