Do you require a deposit when application is submitted?

Question

Do any landlords require a deposit when a application is submitted that goes towards firsts month rent to cut out all the BS ($10 or $20)  If it rejected they will get there money back. To many times I receive a application and screen them, check all there references and everything looks good. I call them back 2 days later and they say they found another place and are no longer interested. What a waste of time.

Rolanda Eldridge · Answer

Jimmy S. ..I require deposit after prospect meets renting criteria/credit pulled.  I charge a $50 app fee, $35 for co-app.   Most in my market don't want to put $$$ on the line unless interested in moving forward.  However, I did collect 3 fees for applicants not qualified.  Most discrepancies show up on credit report..

Michele Fischer · Answer

I think it really depends on what your market will bear.

I would not have any applicants if I charged any funds on the front end, or at least not enough to make a good choice.  Very few in my target neighborhood try it.

I do all the free verification first, and call them to confirm interest before I spend money verifying info.  "Would you accept the unit if it was offered" is a great question to ask midstream.  Never any guarantees, but helps.

Misty W. · Answer

Always. A lot of times people will apply to multiple places because they don't think they will be approved for the one they want. Of course, they don't tell you that. I ask for a deposit and they sign a contract stating if they are approved they will not get the deposit returned. Makes them think first before wasting your time.

Elizabeth Colegrove · Answer

@Nate M.

All of my applications are online. I do not charge an application fee but I require my tenants to pay the credit/background check themselves when it is run.

I also refuse to hold the house for anyone without a signed lease and security deposit.

Andrew Fingado · Answer

I allow applicants to give me a holding deposit if they are serious about the property I am showing.  The deposit moves them to head of the line.  If their application is approved they get the place and it is applied to first months rent.  If it is not approved they are refunded the deposit.  If they back out they forfeit the entire deposit.

My deposits typically run between 20% and 40% of the monthly rent, depending on the interest and rental price of the unit.

I think holding deposits are extremely necessary to weed out the "lookey-loos".  It saves me a lot of time doing tenant screening. Most of the time the applicant who gives me a holding deposit is qualified, serious about the place, and is the one I get into the unit.  I seldom take more than one holding deposit for this reason.

Frank M. · Answer

$25 application fee, and 1/2 months rent.

If they are not accepted, they get the 1/2 month returned.