Deposit to Hold (Earnest Money)

[Nicholas W.]

So I am reading The Book on Managing Rental Properties and Brandon recommends taking a deposit within 24 hours of accepting an applicant. I understand the concept I think it's a great idea. The trouble is in Wisconsin this earnest money deposit has very specific restrictions as to how quickly it has to be returned and what specifically it can be applied to. Unlike Brandon recommends (which probably works fine in his state) I can't just take the full deposit without first trying to fill the unit to mitigate losses and itemizing what the deposit was used for (additional advertising, number of days rent missed, etc.) For this reason it seems that taking an earnest money deposit is more trouble and risk than it is worth in Wisconsin.

One question I have is when bother with this at all? Is there some reason not to just schedule the lease signing as soon as possible, even if the move in date isn't for a week or two? What am I missing?

[Scott Schultz]

we take the first month and sec. dep at lease signing, unless special circumstances exist, I think Brandon may be referring to Ernest money that would be applied to first month, and that would have little regulation, unless you are licensed, and use state forms that direct where the money goes, and how it would be distributed.