Do I Have To Return Her Holding Deposit?

[Christine Swaidan]

Woman wanted to rent an apartment. She wrote on her application that her building had been sold and rent was increased. She said she did not want to move but she could not afford new rent. I ran her credit around October 1 and all was good so I told her that she had been accepted. Move-in scheduled for October 17. I received a $500 deposit before I cancelled ads but there was no lease signed--she is Section 8 and inspection was scheduled for October14--tomorrow. She called this evening saying she can now stay in her current unit and wants her money back. Do I have to return her $$ because there was not a signed agreement?

By the way, my next step is to come up with a form that a holding deposit is non-refundable. Better late....

[Steven J.]

I second what @Jim Sakalis says. You likely have to return it (probably not worth the headache over it). Chalk it up to a lesson in keeping your ad running until a lease is signed and they are in.