Landlord Question and Answer Forum

The future tenant gave me a deposit to hold the apartment until they moved in. They wanted to make sure that I was not going to give the apartment to someone else so they gave me the money to hold it, in New York State. They are backing out and do not want to sign the lease or move in and are demanding their money back. Do I have to return their money back to them? What type of deposit would this be considered? A Security Deposit? And what rights would I have as landlord in this situation? The deposit was only half a months rent.

Don't give it back to them. That's the whole reason they gave it to you in the first place - a deposit to reserve the lease! Let them take you to court if they want. If everyone had to give back a deposit regardless of whether the person did what they said they would, why would anyone take deposits and hold up their own end of the bargain?

Posted by Gregory T, CA on Friday, October 1, 2010

I think as long as you stated clearly that it was a non-refundable holding deposit you should be o.k. to keep it.

Posted by Will and Rebecca H, OH on Thursday, November 11, 2010

Vanessa - you've probably taken action by now. I hope that you kept the deposit. You took the property off of the market and stopped showing it to other potential candidates. You lost time and money. They should not have given you a deposit if they weren't serious.

Posted by Mary D, CO on Friday, November 12, 2010

Never call it a deposit, make it a holding fee and spell out it is non refundable

Posted by , PA on Tuesday, December 27, 2011