All Forum Posts by: Account Closed

@Ethan Atkinson Yes I did.  I thought that's what you are supposed to do when someone gives you a deposit to hold and says I will wait over 30 days to move into your home, signs a bunch of paper work holding them contingent to approval.  Lesson learned, maybe I should just keep taking the applications.

@William Walker This is my first rental property. It's the home I lived in for 3 years with my wife. We don't have a website or anything like that since we are just starting out. Since I am a new to land lording, I try to ask a lot of questions before, after and especially when I get into things.  I also tell my applicants that I do everything based on what the documents say.  So whenever they ask me something and I'm not sure I actually tell them I'll have to look over the documents.  So all of these comments are helpful.  I definitely agree it is not worth $860 and I've already agreed to give the money back.

Thanks @Patrisha Leybovich. Interesting idea of the first come first serve policy. 

Since this is my first rental property, I am trying to be very careful of what I do, that's why I posted this question here, and asked so many people outside of bigger pockets as well, what can I and should I do in this situation.  I'm not just trying to go after someones money for no reason.

I understand that a tenant may have the right to sue for discrimination. And for that very reason I asked if I had to rescind an applicants withdrawal when they tell me to a day later. To me that was strange behavior and I was unsure about this persons character at that point. I did pre-screen this person before passing them over to the HOA and everything checked out ok. So in that situation, would you say I could be sued for discrimination If I decided not to rescind the withdrawal?

William Walker so the holding deposit that I collect is half of first months rent. Rent is $1725, deposit $862.50. So I'm trying to be fair in this situation, and learn that's the whole reason I started this thread in the first place. And I'm following the steps of my lease agreement. My applicant knew and understood the rules of the lease prior to signing, and knew the HOA approval timeframe. So with all that I find it interesting that a lot of people are saying give the deposit back and move on. I get the whole save reputation for your business, which I'm glad people mentioned that, but I'm curious why more people don't see it your way

Sean Phillips well said. I agree. My question to you would now be at what point do you say I need to hold an applicants deposit to hold money? I ask because I assume that clause isn't put into a lease agreement for no reason. After all, you do waste time and money by holding the property. It's also a protection for the tenant as well so the landlord doesn't back out either.

@Deanna McCormick That's exactly what both attorney's told me. 

@Deanna McCormick My agreement does not say anything about the time frame for the HOA to approve. It just mentions being approved prior to lease term date.

Your thoughts are what I assumed were the correct thing to do.  Also after speaking with 2 attorney's they also agreed with you after reading through my lease agreement.  I see a lot of comments saying otherwise, that I should give the money back and that I would be wrong for keeping it.

@Kimberly H. yes I agree it is a really long time.  I spoke with the property manager and she told me that is the normal time frame.  Obviously everyone disagree with that here.  Not sure why the property manager thinks that's a normally time frame for approval.

@Michelle B. I collected a holding deposit after screening the applicant myself. Once I approved them we moved on to the HOA screening process and the applicant was informed that the process will take up to 30 days by the HOA. They agreed, paid their application fee to the hoa and gave me the holding deposit contingent on the HOA approval. Right now we are at day 30 and a few days ago the applicant said they wanted to withdraw their application. This is why I am asking about the holding fee.

@Michaela G. I understand what you are saying. if the condo had declined the tenant I definitely would not keep the deposit as it states in the lease agreement. What i'm trying to ask is if prior to signing a lease agreement, the applicant was made aware that the hoa approval process takes up to 30 days, (it's in writing on their application form for the HOA.) then on day 26 or day 27, the applicant says the HOA is taking too long I want to withdraw my offer. Everyone is saying return the money, which I said I would, but just for learning and understanding, why is she entitled to receiving her deposit back?