Watch video on getting application
deposit back
Landlords often refuse to hold a place for you without
giving them a deposit. These are generally called
application deposits or "hold deposits." When you give a
landlord an application deposit, you are giving the
landlord some assurance that you intend to sign the lease
if the landlord finds you acceptable. If the landlord
approves your application and you change your mind, most
landlords will keep your application deposit. (If a
landlord rejects your application, then the landlord should
return your application deposit.)
Different from security deposits and application
fees
Application deposits are not considered security deposits
because there is no lease agreement between the parties at
this point. The applicant is not a tenant so the security
deposit rules do not apply.
An application deposit is in addition to the application
fee landlords will charge you. Application fees supposedly
pay for a landlord's time and trouble as well as the cost
of a doing a background check. Application fees are
typically nonrefundable -- also known as a gift. We have
heard of landlords that have no intention of renting to an
applicant but they take their application fee and never
bother to check anything. Nice little way to take advantage
of people don't you think?
Conversion to security deposits
Typically, if a lease is signed between the parties, then
the application deposit is converted into all or part of
the security deposit. (Then the security deposit rules
apply.)
How long does a landlord have to either accept or reject a
tenant? If the landlord rejects the tenant, how long does
the landlord have to return the application deposit?
Continue on to Deadline to Return.