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Reputation: 2

Apartment Holding Fee NOT applied to 1st month's rent

I applied for an apartment yesterday & paid the $299 holding fee. I asked if I get it back & she said no, they keep it, that it also goes to getting the apt ready etc..when I signed the application, IT stated that the holding fee would go towards 1st months rent. I pointed that out to her and she said No, they don't do that, it's a mistake...and went into another office where they told her to just cross that part off (the "apply to 1st months rent") and have me sign it...so I did. Was that legal of them to cross that off?

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4 Answers

  • Sho_small
    Reputation: 1226

    Well, how nice and shady of them. Usually, holding deposits are designed to secure the apartment for the prospective tenant prior to moving in. If you don't move in, the deposit compensates the landlord or their agents for the time lost that could have been used securing a new tenant. If you do move in, the deposit goes to either your first month of rent or your security deposit, per RCW 59.18.253.

    Two questions: are you planning on moving in, or did you ask for the deposit back because you changed your mind about that? Also, what else did the application say about the fee? The application should have pointed out all the conditions under which the fee is refundable or not.

    As to changing the contract after the fact because "we don't do that", well, that's just ridiculous. And according to the Residential Landlord Tenant Act, they have to apply the deposit to rent or the security deposit. If you're going to move in, I'd contest the late change even though you signed the document. The Residential Landlord Tenant Act is rife with sections that protect the tenant against the tenant signing their rights away. The assumption there is that the residential tenant is a layman at a bargaining disadvantage, whereas a landlord is doing business as a savvy, sophisticated entity.

    If I were you, and if I/you wanted that apartment, I'd raise the issue with the landlord again and get the deposit applied as it should be applied. Bring a copy of the Residential Landlord Tenant Act with you. Bring business-like friends that stand there silently and glare at the leasing agent. You could try contacting the various tenants' rights organizations in the area, though they're all pretty swamped right now, from what I hear. Couldn't hurt. And there's always small claims court. If you don't want the apartment, I'm not sure that you'd be able to get that deposit back anyway. Good luck!

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  • Shack_small
    Reputation: 583

    This sounds way sketchy. The previous tenant should have had a portion of their security deposit taken out if the apartment had more than the usual wear & tear. Otherwise, it's the landlord's responsibility to prepare a unit for the next tenant.

    Seattle tenants' rights info is here:
    http://www.seattle.gov/dclu/Publications/cam/infofortenants.pdf
    It states that a non-refundable fee must be explained in the lease contract, mentioning explicitly that the fee will not be returned.

    If the only thing she had you do was cross out that portion of the contract, your tenant rights are violated, per the statue in the above pdf document I linked to. You should point this out to her and make sure she knows she's in violation of the law. You may not have to/want to escalate it further beyond the two of you, but you may be doing your fellow tenants a favor by contacting the proper authorities. I have no idea what the penalty is. And you have to consider that this will be your landlord. Or, you could escalate it and move the hell out.

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  • Icon_small
    Reputation: 1627

    I have no idea what the legal implications are, but that is some serious bullshit in a renters' market. They just robbed you of $299.

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  • Sacri_ordines_by_charism_small
    Reputation: 3723

    Yes, it was legal (and arguably binding if you signed it, were it not for state law) it's also legal for you to cross shit off / add things to the lease. It's an "agreement" so whatever you and the landlord agree upon can be there / be vetoed.

    But any leasing agent pulling this shit should be kicked to the curb. Unless they're offering month2month or a killer deal, I'd cross that $299 off as a painful learning experience and seek a place with better/less-criminal people running things.
    I mean, they didn't fire this person.... so, based on this, what do you think is going to happen to your deposit -for example- when you move out? I just bet they'll "discover" damages and you end up owing money rather than getting a refunded deposit. You ought to post the address here, or at bare minimum, file a review at apartmentratings.com.
    Good luck!

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