A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
a Landlord get a Holding Deposit
you are renting a Property, many potential Tenants are considered, What do you
do, if the most qualified Tenant can’t move in right away. In this situation
you may be willing to wait, but what guarantee do you have if you take your
property off the market for a period of time, that the potential Tenant will
actually move in.
mistake many Landlords make is that to hold a property, they take a security
deposit. This is all well and good, but if a Potential Tenant does not follow
through and decides to not move into your property, that security deposit will
most likely be returned in full to the Tenant. What you need to do, is ask the
Tenant for what is called a Holding Deposit.
A holding deposit is a deposit to
hold the rental unit for a stated period of time until the tenant pays the
first month's rent and any security deposit. During this period, the landlord
agrees not to rent the unit to anyone else. If the tenant changes his or her
mind about moving in, the landlord may keep at least some of the holding
the Tenant does change their mind, the Landlord can take in consideration, how
much rent the landlord lost due to the time that the property was not rented
for and also the Landlord can take in consideration added expense such as extra
advertising that was incurred due to the property being on hold for a period of
time. Money can be deducted from the holding deposit and just like a security
deposit, a Landlord must account for the funds that are withheld from the
Terms of the Holding deposit should be clearly defined in the agreement between
the Landlord and the Tenant.
A.D. Cantelmo Property Management Specializes in Property
Management on Orange County Ca.