Landlord Question and Answer Forum

Forum / General Property Management / Is it ok to get potion of security deposit before lease agreement?
Hi, I'm taking portion of security deposit from a potential tenant before his background check and lease signing. Is this ok? Are there any legal ramifications? Thanks, Sachin
Sachin S, CA on Monday, June 25, 2018
RE: Is it ok to get potion of security deposit before lease agreement?
call it a holding fee. Have them sign something like this
Posted by Scott H, VA on Monday, June 25, 2018
RE: Is it ok to get potion of security deposit before lease agreement?
Receipt of Holding Fee This receipt is acknowledgment of receiving $XXXX Holding Fee from XXXXX (Applicants) to hold the rental Home at the following address: XXXXXXXXXXXXXXX until July 1st, 2018. If the home is not available at the agreed upon date the landlord will make a full refund of the fee without interest, and with no liability or penalty to either party. This Holding Fee will be applied to the security deposit when Applicant Pays 1st month's rent and takes possession of the above-described Home. If Applicant fails to pay 1st month's rent and/or take possession. The landlord may deduct any additional costs to find a new tenant from the holding fee including but not limited to: advertising, realtor fees, and the daily cost of vacancy.
Posted by Scott H, VA on Monday, June 25, 2018
RE: Is it ok to get potion of security deposit before lease agreement?
Sorry, the spacing/return formatting doesn't stay when you post on here.
Posted by Scott H, VA on Monday, June 25, 2018
RE: Is it ok to get potion of security deposit before lease agreement?
Thank you so much! This is very helpful.
Posted by Sachin S, CA on Tuesday, June 26, 2018
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