Deposit

Since I am fairly new to this job as apartment manager, I had a new situation this past week. I had a prospective tenant look at an apartment. We have a model apartment. The plan we have available is a bit different but I always make sure they are made aware of the changes. This guy came in and was approved and then put a deposit down. I had him sign the lease and then we went to do the walk thru. Apparently the apt. was not what he invisioned and he did not want to take it. I tried to get him in another apartment but in the end he decided not to come. He came in for his deposit check but it had already been deposited. I told him that we had to wait for the check to clear and then we could reissue him the deposit check. Well, tonite I found out he does not get the deposit check back. If a person puts a deposit down, but backs out before they move in, do they normally get their deposit back? I guess I do not understand why they wouldn't. I am sure we can get the apartment filled fairly quickly. I just wonder if this is a common practice to keep the deposit if they back out before even moving in.

Thanks,

Lexi

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You normally cannot keep it if he backed out solely because the apt was not the same as what you showed him.

[OHlandlord]

I'm sorry Lexi, but I don't understand why you are doing things in that order. I can understand that he may see a model unit when he comes in to apply, but shouldn't he see the actual unit he will be renting before he signs the lease? Especially since it is different from the model he viewed originally? If the units were identical, there wouldn't be a problem with doing it that way. But when they are different (color scheme, appliances, etc.), he should see his unit before he signs the lease. If they are significantly different, he could claim bait & switch. You said the floor plan with this unit is different. That could be judged to be a significant difference. Your boss is going to have to talk to this guy since you already told him he would get his money back. It would be good business to give his money to him. In future, when the unit is different from the model unit, have them view the actual unit for a couple minutes just before they sign. This will end any more of this type of arguements.

If the tenant had seen his actual unit, then signed the lease and backed out claiming he didn't want to live there, you might be able to keep his deposit. Some LLs do write this in their leases that failure to take possession forfeits the deposit in lieu of lost rent, advertising charges, etc.

good advice!!