Security/Holding Deposit Issues

[Dustin Lin]

I got the security deposit from someone and verbally told him this was used to hold the apt for him. But he told me he couldn't take the apt in the last minute before we signed the lease(so we didn't sign the lease yet), because of some personal problems; and asked for the deposit back. He stated the security was for the damage of property. 

After googled, I just learned I should use the term Holding Deposit instead of Security Deposit.

So my questions:

1. Can I keep all or portion of the money by PA's law?

2. What's the best solution for this case?

[Account Closed]

I don't know about PA law specifically, but normally even if you were to call it a "holding deposit," you would still only be able to keep an amount that reflected your actual out-of-pocket losses if they chose not to move in.  If you held it for a month, and your holding deposit reflected a month's lost rent, for instance, that would be fair.

But, to charge a month's rent as a "holding deposit," when you only held the property for a few days, probably wouldn't fly in court.

There are no real mystery magical clauses you can put into leases that allow you do do anything that is not "reasonable."  That is the word that is used in law and in courts - what is "reasonable."  If something doesn't sound "reasonable," then it's probably not legal.