Application/Holding Fee

[muscat1]

Hi everyone:

I delivered an application to lease an apartment along with the first month's rent and the security deposit (equal to another month's rent). For various reasons (of my choosing, not because my application was rejected), a lease was never signed and I never moved in.

I called to get a refund on the rent and security deposit and the management office is saying that they will keep $500 for a "holding fee" - i.e. a fee for keeping the apartment off the market. This holding period was between last Fri and this past Mon (i.e. right around the time of the hurricane) b/c I told my broker to inform the management office that I would not be moving in on Tues am.

The application that I signed does not mention a non-refundable holding/application fee. Neither was the holding/application fee mentioned verbally. I was just told that submitting the first month's rent and security deposit would be necessary to get me the apartment.

Is a holding fee in the manner described above customary (i.e. is this something I should just accept and move on b/c there is no point fighting)? Otherwise, what would be the best course of action?

Many thanks to you all for taking time to read this post and reply.

[ronin]

If it is not listed anywhere on an application or other written contract I would say fight like hell. A whole month's rent is exceptionally high for a "fee". Now, if you HAD signed a lease they could hold the months rent because you owed it. Because you hadn't signed the lease there is no customary month you owe because they can rent it out to the next guy for the rest of the month. (If they had done that and you had signed the lease they would have to refund your rent on a prorated basis).

This is job for small claims court.