What fees do you charge for move a new tenant?!

Question

I want to be sure I'm doing this correctly for a rental property in Gilbert Az Rent is 1450 a month / prorated for the date of move in. We have a $25 dollar application fee for each tenant over 18 for credit/background check Security deposit of 1450 a month which equals one month of rent, due on the date of move in. Earnest money /. How much would be appropriate to charge once the application is accepted. This would be to hold the property for them, the money could be given back or put towards the first months rent. If the applicant backs out this money is not refundable. Is there an appropriate way to figure this amount out? Maybe half of the rent Cleaning fee. The home is in perfect condition and professionally cleaned. Do you charge them a non refundable fee at the time of move in ? 150-250 for our property Any other advice is welcome Thank you

Kim Meredith Hampton · Answer

I actually collect a holding deposit when I collect the application, when they are approved, this turns into their security deposit. If for any reason they decide to not move in or cancel after their approval, the deposit is non-refundable (states this on the rental application). Leases must be signed within 2 days of approval, or I move on. If they do not put a holding deposit with their application,we keep showing the property, and everyone is advised of this.In addition, I also collect a Full months rent upon move, does not matter if they move in on the first, 10th or 20th, always a full month, and then the second month is pro-rated.I also charge a non-refundable cleaning fee and carpet cleaning fee.

Jeff B. · Answer

Most do not use a Holding Fee. Come see the apt and sign the agreement PLUS pay first month+ deposit. Whoever signs/pays first get's the keys.

David Long · Answer

Hi Paul, I'm from a different area than you, but the situation you are trying to prevent is common to all landlords and property managers. We don't want a tenant or tenants with an approved application to back out and cost us critical marketing time for our property. No one wants to lose money, right. We, our property management company, requires payment of the security deposit (full month's rent) and signature(s) on the lease within 3 days of application acceptance or we proceed with marketing the property. The lease constitutes a legal obligation and the security deposit funds encourage follow through with the commitment.On the issue of cleaning fees -- One thing you need to have is a move-in check sheet. Make sure the tenant(s) signs this and returns it to you or your property manager shortly following the move-in date. If they do not return it to you within your specified time, record a memo in their file stating such along with your version of the move-in check sheet. We charge non-refundable fees ($300) when tenants have pets because this typically will result in some back end work on our part when tenants move out. We also have a paragraph in our lease that requires the tenant to pay for professional carpet cleaning upon departure. Lastly, any time you are charging fees or making decisions about retaining security deposit funds, consult your state's landlord tenant law to help ensure your operating within the law.Best Regards,David

Denny Robert · Answer

Paul W. I do a security deposit equal to one month rent. I do a refundable cleaning deposit and make it clear it has to be move in ready for them to get it back. For screening I use Cozy.co and they pay online directly at the application. I believe it is $39.95 for criminal and credit.

Doug McVinua · Answer

@Paul W.We typically charge one month's rent plus a $300 cleaning deposit, both are refundable. If a pet is approved we will add another $300 that is non refundable. Deposits cannot exceed 1 1/2 times rent in Arizona.Application fee is $45 per adult for credit, criminal and eviction history. We also request a number of other documents to collaborate the information.Earnest Deposit is typically $750 for a property like this, earnest money normally converts to security deposit at move in. Earnest Deposit is non-refundable.Be sure to use documents that are inline with the Arizona Landlord Tenant laws.Let me know if you have any other questions, glad to help!

Thomas S. · Answer

Once a applicant has been approved and pays first months rent they lose that rent if they cancel. They get the keys when they pay the damage deposit. As the landlord you keep screening applicants until someone pays first months rent.