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Apartment Holding Fees


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Apartment Holding Fees. In some markets, a holding deposit is called a holding fee. such fees might sound like a good idea for landlords, but read on to learn why. After all, every day a rental isn't occupied, money is lost.

Signed a Lease but Changed My Mind What Are My Options? Apartment Notes
Signed a Lease but Changed My Mind What Are My Options? Apartment Notes from apartmentnotes.com

An apartment holding fee is a sum paid by a prospective tenant to a landlord or property manager to reserve a specific rental unit. A holding deposit is a fee — typically equal to a few hundred dollars — charged by landlords to tenants to “hold” an apartment before a lease is signed. A holding deposit or “holding fee” is a financial sum that a potential tenant will pay as part of their application to rent a property.

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Signed a Lease but Changed My Mind What Are My Options? Apartment Notes

The deposit secures the property for that tenant, payable to the landlord or their letting agent and can legally be no more than one week’s rent. The deposit secures the property for that tenant, payable to the landlord or their letting agent and can legally be no more than one week’s rent. After all, every day a rental isn't occupied, money is lost. It may depend on how much time passed before the landlord could rent the unit to someone else, or on the additional costs that the landlord bore because the tenant backed out.

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