brit_usa2014

Hi we maybe moving to a new location, and we found a couple of places that we would like to rent! One place where we filled out the application required us to pay $100 (in cash/cheque) to hold the apartment (as "they were filling up"). We didn't have it in hand, so we paid them $50, which we thought was ok (this was 3 weeks back)!

Yesterday, we got an email saying that they require the rest of the deposit which is $1400 (almost a full month's rent) by either cash/cheque/money order. I know its standard practice for apartments to require security deposit when signing the lease, but asking for deposit before even signing anything? They asked for reference from our current landlord which we found fair enough!
We haven't even moved yet, and don't know if we'll be moving! I know the correct thing to do is decline, but lets say hypothetically- if we did decide we were moving and wanted that apartment, is this normal of the leasing agent to ask for a deposit before actually signing anything?

Giantaxe

I would only hand over $$$ when I signed a lease.

jibsymalone

Me too, Luckily I have not had to rent here, but it all sounds a little suspect to me?

brit_usa2014

Problem is, it looked suspicious to me as well, but they are a proper leasing agent (with website, ratings on apartmentrating) and so forth, so it's not like a dodgy apartment or anything!

But, all this asking for deposit without signing anything rings alarm bells in my mind somehow!

Hotscot

Why not ask them if this is the usual process?

Giantaxe

Wtf do you think they are going to say?

Jscl

You could ask whether the deposit is fully refundable and under what conditions. You need to clarify whether it is a deposit to hold the apartment for you (often not refundable, sounds like this is your $50) or a security deposit which they hold in case you wreck the place (should be fully refundable if you don't wreck the place or not pay your rent).

For what it's worth, we've only ever given the security deposit at lease signing, after which point they might keep the deposit even if you don't end up moving in, because you've committed to the apartment and they can't rent it to anyone else (so they'll keep the deposit as the first month's rent you would have paid if you'd moved in).

brit_usa2014

Exactly! Obviously they are going to say yes, which is why I wanted to ask people's experiences.

We have been renting at 2 places since we came 3 years back, and all asked for security deposit upon signing the lease. But some leasing agents might have different policies, but still it looked suspicious to ask for deposit without signing anything!

brit_usa2014

Thank you, that seems reasonable asking when you actually sign the lease not before?

Pulaski

It sounds to me like they're assuming that you will be renting their apartment. Apartments often have vacancies currently available, so the usual routine is that people apply, pay the application fee, and move to lease signing within a few days, and that people who go through the application process and don't sign a lease are in a very small minority.

Unless there other reasons to be concerned I don't think it is a scam, but they're trying to help you, or hurry you along (if they're scrambling for tenants). If you're not ready, or not sure, just tell them so, and ask them how long the application can be held for a future rental.

brit_usa2014

I don't think its a scam, just was a bit unusual, but your post makes sense. Thanks so much!

Bob

Do you want the place or not?

If you do, pay up, other wise you will lose it.

It's that simple. If you haven't signed a lease, they are under no obligation to hold it for you.

captainsensible

Its not uncommon actually for the holding deposit to be as much as the security deposit - once the lease is signed, the holding deposit becomes the security deposit and is then placed into an escrow account.

Sally Redux

We paid $30 each to apply and $500 deposit.

captainsensible

It really depends on the person/company leasing the property - sometimes all they want is a 'small' application fee that a. shows your serious and b. pays for your credit check. Other times, they are perfectly entitled to ask for an application/holding fee for a much higher amount - particularly for a property that they know won't available for long. So long as the holding fee becomes your protected security deposit, then it really should not matter.