Holding fee on a rental in Texas

[Mary lou L.]

I did a search and didnt find info exclusive to Texas.

I have an applicant that qualifies and wants the property, it wont be ready for about 10 days. 

I am planning on collecting a holding fee of 250 to be applied to her security deposit upon signing of the lease.  Non refundable if she does not sign the lease on ready date, as I am stopping any advertising for prospective tenants.

Just wanted to know and make sure i have this right, as I do not have a document in place for this. I do have one to prorate the rent, that she will sign along with the lease. 

I would love to connect with Texas landlords! I am an out of state land lord (CA) 

The rental is in the Wichita Falls area. Id love to also discuss trends and anything else pertaining to the area! 

Thanks!

[Account Closed]

Originally posted by @Mary lou L.:

I did a search and didnt find info exclusive to Texas.

I have an applicant that qualifies and wants the property, it wont be ready for about 10 days. 

I am planning on collecting a holding fee of 250 to be applied to her security deposit upon signing of the lease.  Non refundable if she does not sign the lease on ready date, as I am stopping any advertising for prospective tenants.

Just wanted to know and make sure i have this right, as I do not have a document in place for this. I do have one to prorate the rent, that she will sign along with the lease. 

I would love to connect with Texas landlords! I am an out of state land lord (CA) 

The rental is in the Wichita Falls area. Id love to also discuss trends and anything else pertaining to the area! 

Thanks!

 A holding fee is appropriate if you are holding the place empty, while the applicant makes up their mind.  It's not appropriate to charge them for your convenience until the place is ready.

For a fee to be appropriate, it would be a situation where the place is ready, and you're holding it for the applicant, and because of this, you potentially lost rent, if they change their mind.

I think what you're proposing is unreasonable.  If the place isn't ready yet, and you're not willing to commit to a move-in date for the applicant, then you can't hold them to some fee that didn't result in a loss for you.

What would be fair, is to sign a contract with them with a solid move-in date, and with a get out of jail free clause if you can't deliver it on that date due to no fault of your own.  That type of clause is fairly standard and fair.  In that case, the tenant has the option to get out of the lease, with all fees refunded, if you can't deliver it on move-in date - and you aren't liable for any of their potential costs, if you can't deliver it on move-in date.  If it's not ready, the contract is just invalid, at the option of the tenant.

In my opinion, it's always better to get a signed contract immediately.  I don't understand the trend to wait until move-in day to get a tenant to sign a contract.  If you don't have a contract, they can walk away.  So, sign one, with the get out of jail free clause.  I think it's the best option.

As a tenant now, since I retired a year and a half ago, I hate this trend of landlords not signing the lease until your move-in day.  It's scary and nerve-wracking to think I might not have an apartment sewed up with my stuff in a moving van outside, and my last place vacated.  I think the idea is that it keeps the landlord clear as far as the possibility of the previous tenant not vacating, but if you just put in the clause mentioned, that shouldn't be an issue.  

Anyway, I vote no on your holding fee.  Just sign a contract with them, or keep looking.  That's what I did.  I told everyone I keep shopping until I get a signed contract.  So, delay at your peril :-)