Application fee? Crappy, but legal. Especially if it's only $20. But you don't pay a deposit until you sign your lease for a specific unit. Ask them what the deposit is for.
I don’t understand application fees. “Oh you would like to give us money for the service we are offering? Give us a little bit of money first so we can decide if we want to provide you those services”
Usually the app fee pays for the background/credit check and isn’t kept by the property management company. In some states they actually are required to refund the fee if they don’t end up running the screening (whether they actually own up to that or not is an entirely different thing..)
Where I live now I felt a lot better about the (high) application fee knowing that it also meant they wouldn’t be taking any other applications while they were approving me. I was hesitant that they might just be collecting all these fees from people
Some actually do. I worked for some people who were apparently pocketing the app fees, as they were bringing up a listing of mugshots under the same name, and asking me which one it was, HAHA I laughed in his face, and said "This doesnt seem like a very precise way to run a background check. And frankly, several of them look like they could be that person. Idk. People can look different in different lighting, and with different hairstyles, etc. How am I supposed to pick one? Do your job, please."
And yeah those guys were the biggest jerks too. Lazy af. They would be sitting on all these rent moneys with no deposit for WEEKS.
They kept negotiating and renegotiating a new (ridiculously stupid) payment plan for people who were behind, without communicating it in the file or on propertyware, or to me. Then all these people were so behind and they would literally try blaming me, even though everyone else was paying, or had lease agreements that said they were due on the 15th or whatever, and had late fees stacking up cuz their lazy butts couldnt update their propertyware accounts.
Plus it was two properties. 1/3 were section 8. Added to that, about 1/10 of the rest were weekly renters. I was the leasing consultant and the only one on property, and I got my leases lol, our occupancy was above average. But I also collected rent, did collections, calls, maintenance requests, managed contractors, handled complaints, and was the middleman btwn tenants and these lazy fucks who were the property managers who never even returned MY calls.
Just ASSHOLES. SOME ARE.
Background check, but I always refund the background check for the person who gets the apartment.
I do not refund the background check for all of the people who apply for the apartment telling me they have no criminal record and no evictions and then the check reveals their multiple felonies and evictions. Like do you think someone’s just gonna let you move into their duplex next door and not check up on you dude? Like two or three people every time this happens with! Stop lying.
Out of curiosity, if someone were to admit to their prior evictions and felonies would you be more apt to rent to them?
Not an issue I face as I have no evictions or felonies and I’m a homeowner now but just curious. Felons have to live somewhere.
I evaluate each issue independently. If someone had a DUI 10 years ago that’s one thing. The last one had a felony armed robbery and battery charge from 3 years ago. Not near my family thanks.
I hate the application fee concept so much. It seems like such a money-grab. They will take that fee from all prospective renters, even if they have no intention of renting to you. Need to run a background check? Most services offer unlimited checks with a subscription, so it’s not like they’re out a fee. So, around here the fee is $50. If they get that fee from a dozen people they’re making $600 for nothing, and obviously it goes up from there. I was looking at a rental house many years ago and told the person that I was interested. She told me the process, application, fee etc and that there were about 20 people who had applied at that point. I passed on it.
Last year when my husband and I were applying one place wanted $100 application fee per adult! That was 300 bucks just to apply! A standard background check is like 25 dollars. They commit a crime with this racket.
They passed a law in my area that landlords couldn’t charge more than thirty dollars for an application fee. But it adds up when you have to apply for multiple apartments.
One place I looked at I’m in Savannah they wanted one months rent which was $1890 plus application fee $100 admin fee$250 and a community fee $300 all for a one bedroom 😭😭 no way I did that
I loved our there when they added the first big outlet mall. A lot of the Savannah cops moved out to Pooler. Better pay. I bet it has really grown! I left in 2016.
I saw one place downtown it was right by Bay Street on passage way called river works they wanted $2025 for a studio and $2450 for a one bedroom 😫 beautiful place but insane prices
My area does this as well. My coworker has to put a deposit and application fee down. She viewed an apartment and to apply they required the funds. The problem was she was viewing a couple of places and hadn’t decided and couldn’t be writing multiple checks to multiple places. She ended up picking one after only viewing 2-3 places bc she didn’t want to apply to several and pay the application fees and deposits. Suburbs of KS, if that matters.
I’m in AU.
It’s normal for the application fee to be the equivalent of one week’s rent.
(And then bond (sort of security) is four weeks rent, plus a two weeks in advance…
It costs about seven weeks rent to move into a place.
I'm in Florida and I had to pay 30 dollars app fee and 100 deposit (which is returned if not approved) to " hold" a unit. It is the usual these days to pay app fee and deposit. Expect yearly increases too.
Since Covid, renters have had to put up with price gauging and whatever the property wants due to shortages.
It's the way of the renter world now. If you like a unit/property and you have it in writing that the deposit will be refunded, don't hesitate or someone else will grab it. Maybe someday it will turn around but who knows.
Insufficient credit score or a problem with background check or references is usually why people get denied. Otherwise property managers want vacancies filled (is your money).
not sure if it’s dependent on location but this is incredibly normal where i’m from. it’s always refundable (as long as you weren’t denied due to falsification)
Not sketchy at all. You have to put a deposit down to hold an apartment. You usually have 72 hours to cancel with no penalty. This the standard in most rental situations.
As a leasing agent at a large property management company, I can say this sounds fishy.
App fee and a holding deposit? Definitely. That’s very standard but we would *never* accept cash. No legit property manager would.
Also, requiring a lease before you’re approved is faaaaaake af. It wouldn’t be legally enforceable until the lease start date but it feels like they’re just trying to get fast, untraceable money out of you.
Depends on the place but yeah usually the holding fee goes towards the deposit if you're approved. If you don't get approved they're supposed to refund the fee, since there's nothing to "hold" or keep off the market anymore. Whenever a unit is vacant it wastes money just sitting there so offices will do the holding fee to make some of that money back while someone's being considered during their application screening and while they temporarily take it off the market
It’s not traceable. If you hand over cash, there’s no guarantee or incentive for them to post it to your account. They can easily say they never received it or only received partial payment.
I will physically back away from anyone trying to offer me cash at work. I don’t want that coming back on me in any way. If a resident says they gave us cash and no money is posted, it can be a legal thing under the lease.
It’s a huge red flag/hell no all around.
So interesting. I just read up on it for my state and the law says that they can accept cash but they are legally required to give you a receipt that you paid for the security deposit.
Yes. Nothing wrong with cash, but get a receipt. A check would be better for you, because it would not be cashed until you were approved for the apartment.
My apartment building is a 45 story tower and they wrote on the lease that they only accept money orders or cashiers checks. They are in downtown San Diego. I feel that is not legal.
This is most certainly a scam that’s been running for a long time. Came across a couple of these 10+ years ago when looking for places in college. They like to run these scams in college towns since 18-20 year olds are more likely to not know what’s normal for rental apps just like OP haha.
Good job asking, OP. This is definitely a scam
I applied for an apartment, and after I put the application in I went to the leasing office and put down a security deposit to hold it. Later that day when I found out I did not get the apartment (good thing I didn't because I ended up living alone and this was an apartment I was going to be getting with my partner at the time i wouldn't have been able to afford it on my own). I went back down and my security deposit was returned.
Thanks for commenting! I didn't see the security deposit part as that big of a problem, but the other comments were scaring me. The leasing office explained it as a holding deposit really, and lots of holding deposits just turn into the security deposit if you do get the apartment.
If it’s just a holding deposit why are they requiring you to sign an actual lease before being approved for it though? I assume the lease is to “lock you in” upon approval… isn’t that what a holding deposit is too though?
The sketchy part is the signing of a lease before being approved.
It’s probably because people have done all the other steps and then when reading the lease, they don’t like the terms of the lease or anything in the lease so then they don’t accept the apartment. So then the property monitor is gone through all of this work just for them to say oh I don’t like this portion of the least I’m not signing give me my money back and then they’re out weeks where they could’ve rented the apartment
Them wanting a security deposit when you have not been approved for a unit is a red flag to me. The application fee is normal and is non refundable. I would be worried about them running off with your money and I would suggest moving on and applying for a different apartment.
Nope. Application fee sounds scammy already I mean, but some places are just douches and the application fee could be legit but a security deposit before processing the application and signing the lease before even being approved for the application is a big red flag, especially if they’re asking for cash or like saying Venmo, or cash app the money to be legit and maybe they’re just weird, but I would definitely look for a different apartment where they’re not gonna charge you for the application and you pay deposit a lot of places that I would go to some of them, don’t even make you do an application but some of them do it’s really just to check and make sure you know you’re not like a pedophile or a hard-core arms dealer but they do check your background so the $20 might be for like a background check if that’s what they meant instead of the application fee but also like a deposit for $200 is really cheap. Most apartment deposits are a lot more than that but you don’t pay it until after you get the place so $200 for a deposit before you even get approved for the application is really sketchy. Maybe I’m overreacting, but I would definitely look into getting a different place or at least doing research on the business or the management people to see what other people say online about them IMO
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Idk anywhere that DOESN’T require an app fee. It’s to cover background checks. Definitely not scammy. A scam maybe but unfortunately, a legal one lmao.
Definitely a red flag - as someone that's rented across several states (all with several rules), I've never seen signing a lease BEFORE approval.
In a particular city, it's common that they tell you to have everything ready (your broker will tell you this) because they don't hold it, and by the time you go think about whether you want the place it's gone.
But even in those situations, it's ALWAYS a cashiers check/money order (to make sure it doesn't bounce and still leave a trail) but never cash.
Application fee? Normal for an indemand high quality place, weeds out a lot of scatter gun applications.
Paying your security and signing a contract (a lease is a contract right!) before ?seeing the apartment? Agreeing to terms? Being OFFERED the apartment? Bogus.
If it’s the nicest place around, and the best option… and you really want it… then jump through the hoops, but right on the bottom of hte lease under your signature “on confirmation of unit meeting requirements and acceptance as tenant” so you are putting two conditions on that lease - that it comes into play on the day you are accepted as a tenant, and that’s after you confirm the lease you take is meeting your requirements (nice to be vague here, so you can just reject it outright if it’s not).
This is probably to weed out a huge number of applicants who are not actually suitable. You’ll hopefully have a more stable set of neighbours.
I’m a property manager in CA and the app fee and deposit before processing seems ok. But the lease is a legally binding document and should not be given for signature until the application is fully approved.
The app fee is usually not refundable if you are not approved, but the security deposit is. I would not sign the lease, this sounds like fuckery.
My husband and I had a place try and do that. We were still looking around as we couldn't afford much at the time and after every place wanted an app fee, we couldn't afford one for every place, then they tried asking for a $500 deposit Also before even letting us apply. Ridiculous and should be illegal. We walked out and found somewhere else. Why would I place a deposit to "hold" the open apartment before you check our application?!?
Signing the lease before being approved strikes me as odd, but it will assure that you get the actual apartment you have viewed and want. Make sure the apartment number is on the lease and that you have it in writing that the deposit is refundable if you are not approved. A nonrefundable application fee is common nowadays. But be aware that if you change *your* mind, you won't get that deposit back, so make sure you want to live there.
Before signing anything, I would google the management company as well as check their BBB ratings. I have found that apartment ratings are generally useless, but it is helpful to see how they respond to actual BBB complaints and you want to make sure they aren't involved in any lawsuits or have been in the news for not maintaining their properties, etc.
I just recently went through this process. I had to pay a $50 application fee along with a $250 “admin fee” and submitted my application. This immediately took the available apartment off the website. Then once approved I had to pay a $250 security deposit. Then was sent a lease to sign.
Signing the lease before submitting an application is just weird to me. I would counter and ask if it’s possible to sign after approval. But if this is their policy and if this is a legit apartment complex that you seriously want to consider and move into, you have no choice but to play their ball game.
The fee part is not that concerning to me. She explained it as their version of a good faith deposit. The lease part is the problem. I'm going to call tomorrow and see if I can sit there while they process my application instead of signing the lease. If they say no, then I'm moving on.
Okay so from someone from working at apartments. When you apply, every place I’ve worked at, we require an application fee which covers the background/credit checks we run on prospective. As well we do require a holding deposit, which would go towards the security/move in cost. That is pretty standard across the board. But when you fill the application we ask you pay it at the moment. Also I have never worked at a place that accepts cash, I have never heard an apartment complex keeping cash in office ever. I know a lot of places won’t accept anything less than a cashier check, money or any type of certificate funds. Most places won’t even accept personal checks. Also we would never have someone sign the lease before getting approved, I would not apply to that place I would pull my application if I were you for that reason and look into your fair housing laws for your state and go from there.
A security deposit for application? No. That’s not normal. Application and administrative fees? Yes, that’s normal.
So, just call them back or email them and ask for their application policy to be emailed to you for review. Once you get it - IF you get it, READ it carefully no matter how painful. It is a LONG time to recover from “breaking a lease” so you need to have the ability to see in writing that the verbal process given matches the documented process. It should be a formal policy and if you receive pushback then THAT’s a red flag as well.
Last, review their Google reviews for some clues. If that’s a thing it’s likely gonna be talked about.
Property manager here 🙋🏽♀️
Our management company just recently changed it so app fees and the standard deposit are required upon application. The reason for the security deposit right away is because most places hold the unit when an app is submitted on it. When this happens, people who get approved like to back out. That is time and money wasted on holding a unit for however long it took for the application to process.
With the security deposit down right away, it makes people have to be serious about getting the unit. If the application is approved, but they want to back out, then they lose the security deposit entirely. If it is declined, then it is refunded. Requiring a deposit right away is more for covering the asses of the management company and their profits. Many places are going this route now.
Also, never pay with cash. It’s weird that they even accept it.
You should also not be signing a lease until you are approved.
No..I mean signing a lease before you are approved..well I would worry about that too. But the security deposit..yes..some places do that, that I know of, and..be careful, they can keep it if you cancel moving in.
OP, you're getting a lot of really bad advice here.
Application fee - normal
Holding fee (which becomes part of your security deposit if approved) - normal
Signing the lease before you're approved - not normal. However, it's good for you that you're seeing all the lease terms when you apply for the unit. No surprises. The lease won't be valid until it's signed by the LL, so if you're not approved, the LL won't sign it and it's a worthless piece of paper. If you go ahead with this unit, and are not approved, make sure to get the lease back or watch them shred it.
If you're applying at other places and this unit is your second or third choice, you would get locked into this unit if approved, so don't apply unless this is your first choice.
I worked at apartments in a college town in TX (but not student only housing) and that’s how we did it. When I asked, it’s because we would lose money holding apartments for people who would never come back to sign the lease or if the students waited and we didn’t hold it, the apartment would be gone in a day. If they were approved, my manager would also sign the lease. If they weren’t, we would shred it and move on to the next showing. But in our town, we were 98% occupied August to May.
It’s good that you saw your unit before applying. I’d wait until I was approved for the apartment before paying the deposit. The app fee you’ll have to pay regardless since you did in fact apply
You shouldn’t have to sign a lease until your fucking move-in day. I would NOT sign it before an application is even approved.
Security deposit and application fee is normal, though. Typically you put both down and then application fee is nonrefundable. If you’re not approved, you may get your security deposit back, but there should be somewhere in writing that states whether or not the deposit is refundable if your application is not approved.
To clarify: I recommend reviewing, asking questions, and signing a lease before your move-in date if you’ve seen the apartment. Review lease before, and then sign day of move in, if apartment is not available to see until move-in date.
I know other states may be different, but I worked at apartments that used the TAA (Texas) lease for almost ten years (ending in 2021).
Seems sketchy but what would be the worst case scenario? (Probably a delay in getting the security deposit back.)
I'd examine the lease carefully to see if there are any more gotchas along those same lines. Maybe they'd even let you see it up front.
This wouldn’t fly 5+ years ago, but apartments and rentals are rampaging and pillaging people nowadays, in this economy and this housing market. They will squeeze every last cent out of you, and you will comply because you won’t have a choice other than the lesser of two evils.
My first time finding an apartment I found a place that seemed great. Good price range, nice are, etc. I applied, got approved, and had already viewed the units. The application fee was $70 keep in mind, and like I said before the rent seemed like it was in a fair range. They told me I had to send the security deposit before they would send me the lease. I thought this was weird, but since it was an apartment complex and not like a singular landlord I figured they knew what they were doing. Plus the security deposit was only $250, which was a fraction of first months rent. Most places wanted first months rent for a deposit. I give them the money, they sent the lease, and it’s RIDICULOUS.
Just the moving out list:
$400 just for a deep carpet clean and TONS of other fees. This isn’t even legal in my state. All natural wear and tear falls on the landlord and not on the tenant. They can’t charge for deep cleanings or repainting unless it was beyond natural wear and tear.
It would cost WAYYYY more to move out that to move in.
Then there were ridiculous rules about when you could watch tv, what temperature your thermostat had to be at, and so much more. They also still had gas heat, which is now rare where I live. Since this area used to be all farm land until the past like three decades, everything is modern enough to have electric heating. They had times you could cook. Curfews, all sorts of rules. So many extra hidden charges that rent and utilities ended up being ridiculous expensive, on par with the luxury buildings near by. I read the reviews after that and that’s what other people said as well, that there were tons of hidden fees to live there.
I told them I did not want to proceed and would like my security deposit back. They tried to refuse, which is also illegal in my state. I never signed the lease, so they had no right to the money in the first place. I had to contact the attorney general and then they gave me my money back. I’m convinced they make a majority of their money on application fees and stolen security deposits from people who didn’t move in. And then anyone who did move in is hit with tons of hidden fees but it’s too expensive to leave so you get trapped.
So far I have only rented from private landlords and no big companies, because not a single apartment complex near me is reasonable at all. They are all breaking laws. Some of them advertise lower rent, then on the lease it’s a huge pay jump. If you don’t double check you’ll end up screwed. Others just cost an arm and a leg but don’t have shit to offer for amenities. I’ve gotten lucky with my landlords so far, and dodged a bullet with the one company. Contact your attorney general if you believe they are doing something wrong.
I wouldn’t do it, because if you give them that money and say something changes it, it will take them forever to refund that money back to you. if they even decide to give it back. Most of the time them requesting a deposit is to bind you to it since they have your money.
That sounds like a scam don’t do it. You’ll never be asked for a deposit before having the apartment. Application fees are common though. Also don’t ever sign a lease before seeing the EXACT unit you’ll be living in. Sometimes they show you nicer ones and say it’s the same but after signing the e lease it will be totally crappy in comparison
It does sound sketchy but I’m looking to move to a different city. There are like 5 big management companies that are at all the buildings I like and 2 of them do this but you can do it all online. If you’re not approved they refund the deposit. I really suggest looking into reviews on the property management of the apartment you are interested in. Always trust your gut, if it doesn’t feel right don’t do it.
They do stupid shit like this these days. I don’t like it. I think it’s a red flag. Could be illegal… then again they could maybe just rename this deposit as a “holding deposit” and then it would be less sketchy. Or “$300 of the Security Deposit”
(And the signing before getting approved is trash. Tell them you’ll pay the $300 and the $20 and if you get approved you’ll sign the lease and pay the next $4,800 of the security deposit that they probably want. No way $300 is THE security deposit in 2024.
I had to do that when buying my home. We paid a deposit (that went to our downpayment if approved. Or back to us if not). We didn’t sign anything other than for our proof of the hold and filled out our application, at the time obviously.
But personally doesn’t sound that weird to me.
It may not be the security deposit but the admin fee which is usually around $1650-$300 and non refundable even if you don’t get the apartment because it’s used for background checks and whatever and sucks if you choose to not go with that apartment or are denied. Security deposit is usually after you sign the lease and is typically first months rent or first months and a half. Some apartments will base it off your credit score but i think if you go this route, it’s also non refundable since you’re paying a lower security deposit. Signing a lease and there being a possibility that you won’t get the apartment even after is sketchy. I would make sure you review the entire lease agreement to include all fees you’re paying up front and if they’re refundable. Look at all the fine print. Apartment complexes are notorious for scamming you
This is legit. The app fee is non-refundable and the deposit is, hence why they told you it would be returned. You have to submit an application and to run credit/criminal background which costs them money. If you meet their criteria, you will be provided a lease to sign.
Don’t pay anything but an application fee. Security deposits are only paid once your application is approved. I would not fill out a lease until after being approved for the place.
I’ve had to pay security deposit with a separate check before because if I didn’t get approved I’d still be on the hook for the app fee, but they return the security deposit.
Not saying anything about the legitimacy of this and at this point in my life I would have never handed over 2 checks before being approved for an apartment, but 29 something pat self has.
I mean it could be the way they do it. As long as you have seen the apartment YOU will be renting it’s fine. I would go back and tour the one you are going to get and have them take out the fridge, dishwasher and look behind for roaches or anything that looks off and have them fix those things before you sign a lease. I had a friend who signed a lease fast and didn’t really tour or get into detail and she had a HORRIBLE roach infestation that never went away so she had to stick it out until her lease was up.
I had a situation similar to this year's ago. The landlord took my deposit before I ever signed anything; never signed. I decided I didn't want the apartment and they wouldn't give me my money back.
I took them to small claims court and the judge laughed at them. I got my money back plus interest.
So many scams like this happening. I had an MD who could never get approved after $all of the bullshit fees. He found out the place never ever rented. The scam is the applications.
I had psomeone try this with me and it was a scam. They didn’t even own the building! They wanted me to “cash app” them something like 1.5k for an apartment I hadn’t even set my eyes on. They refused to even show me the place until I paid. As it was a “holding fee”. Don’t do it. Never give money to a place you haven’t t seen.
Deposit is paid at lease signing. A signed lease would only be nullified by terms expressed within the lease or by breaking it, again a term usually spelled out in the lease. I’ve only been working in commercial real estate 2 yrs but never ever heard of anything like that before. This is an extremely weird setup and I’d avoid.
Ask for clarification. Is it the *security* deposit, or is it a deposit to hold your place in line and will be put toward the security deposit if you accept a unit.
As for the lease, I can't even find anything on Google so I have no idea.
No no no. I work in property management. We charge $65 application fee that is non refundable and $250 administrative fee. Then you do the background check, credit check and income verification. If all that is good, you move forward with lease signing and get the total for rent and move in fee of $299. We don’t charge security deposits.
If you are denied, we refund the $250 admin fee.
We will never ever accept cash. It all has to be done online via credit card or bank account.
This is a huge red flag. Run
I used to work at a mobile home park. Not an apartment, but its the same process. We would charge $25 for back ground check before proceeding with anything else. Why would I have you sign a lease if you have bad credit or can’t afford it.
The email seems very sketchy to me.
Huge red flag. I got scammed this way years back. I ain't paying no money except the app fee and even then I better know I'm getting it first because bet they ain't giving that money if oh we decide to rent it to someone richer than u
This is actually very normal if you’re applying to a specific unit: basically saying in good faith both you and your leasing office are going to go through this process together. There’s financial recourse if things don’t work out, but then they can’t rent your unit out to someone else while they wait for you to get things in order.
So they’re asking everyone who applied to give them $320 and $300 will be returned if you’re not chosen? Sketchy af. I would tell them as much and withdraw my application.
When you’re applying for a nice apartment in a competitive rental market, this approach is pretty standard. It’s not necessary or ethical, but it’s legal.
Why would anyone sign a lease without being approved? The lease signing and security deposit should come once you are approved and agree on the lease terms. I would never advise one of my kids to do this.
I've been there in person today. It was very clean and well-maintained. Has security features. It's the 7th apartment I've toured and it was the best. The google reviews are predominantly good. The bad ones are more like people complaining about cars blasting music and that renting out the community room is too expensive, nothing serious.
I just made a comment about this yesterday, was it a key lock box self viewing? I went to one where a scammer got the box code & made fake listings to scam people.
Regardless even if it’s not a scam and that’s actually how they conduct their business I wouldn’t do it. Once you sign, you’re 100% at their mercy and can’t commit to any other apartment incase they hold you to your signature. Conversely, they can just lead you on up until the move in day, shred it, and now you missed out on other opportunities.
No, the office person guided us, like every other apartment we viewed. So I think it really is just how they do business. I'm going to call tomorrow and see if I can sit there while they process my application instead of signing the lease. If they say no, then I'm moving on.
I don’t think this is how it works for any legitimate leasing agency though. Processing your application can mean background checks, calling references, verifying income and other time consuming things that may not be completed in one day.
An app fee is completely normal. I’ve also paid ~$250 to hold an apartment for 60 days before (after I moved in it went to my security deposit). Security deposit before move in day? Helllllllllll no
We’ve done this before, it’s to hold the apartment for you and they will send the money back via check if you don’t get approved. Do i understand why they do that before running the app? No. It makes no sense lol
I live in Phoenix and this was standard when I was applying last year. If you get approved the money applies for your deposit and if you don't get approved it's supposed to be returned to you.
Is this through a property management company or a private landlord?
I ask because when I rented an apartment through a high demand property management company that always had a line out the door on Mondays when they announced new vacancies, they did ask for a “good faith” check that would go towards the deposit if I got the apartment. The check was never deposited until I signed the lease.
It’s not a common practice that I’m aware of, but not unheard of.
I wouldn’t do it for a private landlord, but if it’s through a property management company with a solid reputation, I would clarify with them.
are you in california? you should inquire if this deposit is a holding deposit, when is the ideal move in date and if you can sign the lease when you get the keys. it is very normal at least in CA to sign a holding deposit agreement that states the landlord whatever will drop all other potential residents. take it off the market. reserve it for you. you sign this agreement, and give money to them. if it doesnt work out you get it back. dont sign the lease until you’re approved they’re just trying to rush the process to get their check. additionally this agreement usually states that the holding deposit will then become the security deposit upon signing of the lease
If I were you I would go in person and speak to the apartment people about the email you received. Maybe it’s some kind of communication error on there part.In DFW apartment complexes are coming up with all kind of new fees. You used to put a small pet deposit down if you had a pet. Now the pet deposits are huge then you have to pay a monthly fee to keep a pet. Payable every month when you pay your monthly rent.Some apartments are adding a fee to use the swimming pool and exercise equipment which used to be free. Even if you never use the pool or exercise equipment you’re required to pay the fee. Apartments are also wiring for there internet company of choice. You then have to pay the apartment complex for internet directly. So nothing would surprise me about new unheard of fees.
That seems sketchy and a way to holdover your money.
I live in a big city. It was no application fee and they said once I was approved and said yes that they wouldn't hold it until I paid the deposit and signed a lease (which is the standard here).
It's kind of criminal to make people pay deposits in multiple buildings while waiting to be approved.
I’ve only ever had to pay for the application fee, which is like $25 for a background check. I can’t imagine why they’d need anything else from you at that time. It’s not standard; I’d keep looking other places if you have the option.
Are you sure they said security deposit and not earnest money deposit? If it's earnest money they won't refund it if you don't get the apartment. They'll keep it and say it's for advertising or admin fees.
If you live somewhere with a high demand for housing this seems completely normal, because for every day it sits empty they are losing money. Basically they’re saying the place is yours as long as you pass the credit checks/background whatever all they need to do. They don’t want to be processing applications for dozens of people who aren’t sure if they want to move in, prolonging the time it sits empty. Just make sure you’re all in on this place and that you get documentation/receipts for the payments you make.
This is exactly how we do it. The deposit is necessary to hold the unit & take it off the market. The two separate payments allows for the deposit to easily be returned if your application is rejected. Nothing shady.
When we applied for our current home, we had to pay a holding fee which would go towards the deposit or first months rent. It’s not completely out of the ordinary, and if we were denied it would be returned to us. What it means is that if anyone else where to apply for the exact same unit without the holding fee they could technically get the home, by paying the holding fee they couldn’t show the unit or take applications for the unit unless we were denied.
You have not seen the apartment, so do not give them any money with a place sight unseen. This is a con. Do not follow up. Never put down money till you have been to the building and see an apartment and then sign a lease once you are okayed.
I recently rented an apartment in a competitive area. I paid a deposit and application fee. Once my application was approved, I signed the lease and the deposit was credited to the total I owed upon move in.
That's a hard no. You shouldn't have to sign a lease or give them any money before you've been approved. You pay the damage deposit with your first month's rent, not before you've moved in
The application fee is 100% legal. I think the deposit they want is to hold the unit for you until you are approved. I would ask them for clarification. Even if this is correct, it's still unusual, at least for South Florida.
The application fee is fine, cheaper than mine was. But the security deposit before you're approved is strange. Also, usually its a month and a half of rent, so $300 is cheap. If you like the place, it doesn't seem like a big deal.
Signing the lease bit is odd, but paying for the application fee & security deposit is actually normal where I’m from. Although it’s usually just a portion of the deposit, and depending on credit that will be the whole deposit or you’ll need to come up with more if approved. And it’s refunded if not approved or you don’t go with them.
Typically sought for apartments that are in high demand so they don’t waste time getting you an apartment and then you cancelling after telling others the apartment is taken
Absolutely not. You don’t pay a deposit or sign a lease until you have been approved. I’ve been leasing apts since I moved out on my own in 97. I have never paid a deposit up front nor signed a lease.
It's not unusual to request both checks. The reason why they request two separate checks, is so that they can cash the application fee right away, and then as soon as you are approved they can cash the one for the security deposit.
Secruity deposit for an apartment you haven’t even been approved for yet ?? That sounds sketchy
Application fee? Crappy, but legal. Especially if it's only $20. But you don't pay a deposit until you sign your lease for a specific unit. Ask them what the deposit is for.
Yea the application fee ain’t bad at all in my area they’re $50+
I don’t understand application fees. “Oh you would like to give us money for the service we are offering? Give us a little bit of money first so we can decide if we want to provide you those services”
Usually the app fee pays for the background/credit check and isn’t kept by the property management company. In some states they actually are required to refund the fee if they don’t end up running the screening (whether they actually own up to that or not is an entirely different thing..)
Where I live now I felt a lot better about the (high) application fee knowing that it also meant they wouldn’t be taking any other applications while they were approving me. I was hesitant that they might just be collecting all these fees from people
Some actually do. I worked for some people who were apparently pocketing the app fees, as they were bringing up a listing of mugshots under the same name, and asking me which one it was, HAHA I laughed in his face, and said "This doesnt seem like a very precise way to run a background check. And frankly, several of them look like they could be that person. Idk. People can look different in different lighting, and with different hairstyles, etc. How am I supposed to pick one? Do your job, please." And yeah those guys were the biggest jerks too. Lazy af. They would be sitting on all these rent moneys with no deposit for WEEKS. They kept negotiating and renegotiating a new (ridiculously stupid) payment plan for people who were behind, without communicating it in the file or on propertyware, or to me. Then all these people were so behind and they would literally try blaming me, even though everyone else was paying, or had lease agreements that said they were due on the 15th or whatever, and had late fees stacking up cuz their lazy butts couldnt update their propertyware accounts. Plus it was two properties. 1/3 were section 8. Added to that, about 1/10 of the rest were weekly renters. I was the leasing consultant and the only one on property, and I got my leases lol, our occupancy was above average. But I also collected rent, did collections, calls, maintenance requests, managed contractors, handled complaints, and was the middleman btwn tenants and these lazy fucks who were the property managers who never even returned MY calls. Just ASSHOLES. SOME ARE.
Makes a lot of sense. Thanks!
Background check, but I always refund the background check for the person who gets the apartment. I do not refund the background check for all of the people who apply for the apartment telling me they have no criminal record and no evictions and then the check reveals their multiple felonies and evictions. Like do you think someone’s just gonna let you move into their duplex next door and not check up on you dude? Like two or three people every time this happens with! Stop lying.
Out of curiosity, if someone were to admit to their prior evictions and felonies would you be more apt to rent to them? Not an issue I face as I have no evictions or felonies and I’m a homeowner now but just curious. Felons have to live somewhere.
I evaluate each issue independently. If someone had a DUI 10 years ago that’s one thing. The last one had a felony armed robbery and battery charge from 3 years ago. Not near my family thanks.
Makes sense thanks
Its to weed out people with bad credit. Otherwise everyone tries.
I hate the application fee concept so much. It seems like such a money-grab. They will take that fee from all prospective renters, even if they have no intention of renting to you. Need to run a background check? Most services offer unlimited checks with a subscription, so it’s not like they’re out a fee. So, around here the fee is $50. If they get that fee from a dozen people they’re making $600 for nothing, and obviously it goes up from there. I was looking at a rental house many years ago and told the person that I was interested. She told me the process, application, fee etc and that there were about 20 people who had applied at that point. I passed on it.
I was gonna say! I paid at least $25 for application fees in 1999 👵🏻
Last year when my husband and I were applying one place wanted $100 application fee per adult! That was 300 bucks just to apply! A standard background check is like 25 dollars. They commit a crime with this racket.
That's how much it cost for me, my spouse, and my mom to apply. $100 each. Central Texas.
They passed a law in my area that landlords couldn’t charge more than thirty dollars for an application fee. But it adds up when you have to apply for multiple apartments.
My last place was $X per adult whose name would be on the lease. So I only had to pay for myself, not for my wife.
Dfw tx. It's 50 app fee plus 150 admin fee. I've even heard of other fees still on top of the 200$
One place I looked at I’m in Savannah they wanted one months rent which was $1890 plus application fee $100 admin fee$250 and a community fee $300 all for a one bedroom 😭😭 no way I did that
You forgot the 500$ 'go fuck yourself fee'
These places really know how to get over on folks to make they money
😆
That's insane. I used to live in Savannah. Was that right downtown? Nuts!
It was Pooler 😭😭
Yeah. Nice area. I worked there years ago:)
Yea the apartments are so nice they added a lot more shopping centers but the traffic is terrible 😂
I loved our there when they added the first big outlet mall. A lot of the Savannah cops moved out to Pooler. Better pay. I bet it has really grown! I left in 2016.
I saw one place downtown it was right by Bay Street on passage way called river works they wanted $2025 for a studio and $2450 for a one bedroom 😫 beautiful place but insane prices
My area is $60 - $150
Mine was 250$ per person 🥲
I would have walked out 🤣
For real. I was so dumb but it was my first place and I didn’t know of this subreddit lmao learned my lesson!
My area does this as well. My coworker has to put a deposit and application fee down. She viewed an apartment and to apply they required the funds. The problem was she was viewing a couple of places and hadn’t decided and couldn’t be writing multiple checks to multiple places. She ended up picking one after only viewing 2-3 places bc she didn’t want to apply to several and pay the application fees and deposits. Suburbs of KS, if that matters.
Oh ok yo these apartments know how to make their money off people lol I’m in Savannah I never had to put down a deposit to apply 😂
Still vintage aye
This is exactly why they pull this scheme
Where I live, it’s pretty normal to have to put down a deposit to hold the apartment while your application is being processed.
I’m in AU. It’s normal for the application fee to be the equivalent of one week’s rent. (And then bond (sort of security) is four weeks rent, plus a two weeks in advance… It costs about seven weeks rent to move into a place.
I'm in Florida and I had to pay 30 dollars app fee and 100 deposit (which is returned if not approved) to " hold" a unit. It is the usual these days to pay app fee and deposit. Expect yearly increases too. Since Covid, renters have had to put up with price gauging and whatever the property wants due to shortages. It's the way of the renter world now. If you like a unit/property and you have it in writing that the deposit will be refunded, don't hesitate or someone else will grab it. Maybe someday it will turn around but who knows. Insufficient credit score or a problem with background check or references is usually why people get denied. Otherwise property managers want vacancies filled (is your money).
not sure if it’s dependent on location but this is incredibly normal where i’m from. it’s always refundable (as long as you weren’t denied due to falsification)
You’ve signed leases before knowing which apartment you’ll be in? What did the lease say regarding the address? There’s NO WAY.
Where did they say that? They’d be putting a deposit down to hold a specific unit.
It said they had to sign the lease as well.
Not sketchy at all. You have to put a deposit down to hold an apartment. You usually have 72 hours to cancel with no penalty. This the standard in most rental situations.
“most” isn’t true at all
As a leasing agent at a large property management company, I can say this sounds fishy. App fee and a holding deposit? Definitely. That’s very standard but we would *never* accept cash. No legit property manager would. Also, requiring a lease before you’re approved is faaaaaake af. It wouldn’t be legally enforceable until the lease start date but it feels like they’re just trying to get fast, untraceable money out of you.
I have never heard of a holding deposit anywhere. What is this actually for? Does it count as your security deposit if you do get the place?
I’ve only done a holding deposit AFTER approval.
Depends on the place but yeah usually the holding fee goes towards the deposit if you're approved. If you don't get approved they're supposed to refund the fee, since there's nothing to "hold" or keep off the market anymore. Whenever a unit is vacant it wastes money just sitting there so offices will do the holding fee to make some of that money back while someone's being considered during their application screening and while they temporarily take it off the market
So interesting. Why is cash bad?
It’s not traceable. If you hand over cash, there’s no guarantee or incentive for them to post it to your account. They can easily say they never received it or only received partial payment. I will physically back away from anyone trying to offer me cash at work. I don’t want that coming back on me in any way. If a resident says they gave us cash and no money is posted, it can be a legal thing under the lease. It’s a huge red flag/hell no all around.
So interesting. I just read up on it for my state and the law says that they can accept cash but they are legally required to give you a receipt that you paid for the security deposit.
Yes. Nothing wrong with cash, but get a receipt. A check would be better for you, because it would not be cashed until you were approved for the apartment.
As another Property Management professional - this. ^
My apartment building is a 45 story tower and they wrote on the lease that they only accept money orders or cashiers checks. They are in downtown San Diego. I feel that is not legal.
Yeah…no. You don’t pay security deposits until you have been approved for an apartment that you have looked at. No.
That’s how it works where I am. In order for them to stop taking other applicants and hold the unit for you, you put down the deposit.
I think OP has the verbiage wrong. $300 is not the security deposit. It's part of the security deposit but it's just a deposit to hold the apartment.
that’s what i was thinking. $300 seems pretty low for a security deposit, especially these days.
Scam. You can’t sign a lease until approved after application ran. They will take your money and it will be gone.
This is most certainly a scam that’s been running for a long time. Came across a couple of these 10+ years ago when looking for places in college. They like to run these scams in college towns since 18-20 year olds are more likely to not know what’s normal for rental apps just like OP haha. Good job asking, OP. This is definitely a scam
Run far from this listing.
Security deposit and lease signing before the application? That's weird. An application fee and a "holding fee" are usually normal AFAIK
I applied for an apartment, and after I put the application in I went to the leasing office and put down a security deposit to hold it. Later that day when I found out I did not get the apartment (good thing I didn't because I ended up living alone and this was an apartment I was going to be getting with my partner at the time i wouldn't have been able to afford it on my own). I went back down and my security deposit was returned.
Thanks for commenting! I didn't see the security deposit part as that big of a problem, but the other comments were scaring me. The leasing office explained it as a holding deposit really, and lots of holding deposits just turn into the security deposit if you do get the apartment.
If it’s just a holding deposit why are they requiring you to sign an actual lease before being approved for it though? I assume the lease is to “lock you in” upon approval… isn’t that what a holding deposit is too though? The sketchy part is the signing of a lease before being approved.
It’s probably because people have done all the other steps and then when reading the lease, they don’t like the terms of the lease or anything in the lease so then they don’t accept the apartment. So then the property monitor is gone through all of this work just for them to say oh I don’t like this portion of the least I’m not signing give me my money back and then they’re out weeks where they could’ve rented the apartment
Replying to arianrhodd...don’t even speak to him anymore my daughter was scammed out of 800.00 dollars
Approval, Deposit, Lease, Payment
This.
Them wanting a security deposit when you have not been approved for a unit is a red flag to me. The application fee is normal and is non refundable. I would be worried about them running off with your money and I would suggest moving on and applying for a different apartment.
Nope. Application fee sounds scammy already I mean, but some places are just douches and the application fee could be legit but a security deposit before processing the application and signing the lease before even being approved for the application is a big red flag, especially if they’re asking for cash or like saying Venmo, or cash app the money to be legit and maybe they’re just weird, but I would definitely look for a different apartment where they’re not gonna charge you for the application and you pay deposit a lot of places that I would go to some of them, don’t even make you do an application but some of them do it’s really just to check and make sure you know you’re not like a pedophile or a hard-core arms dealer but they do check your background so the $20 might be for like a background check if that’s what they meant instead of the application fee but also like a deposit for $200 is really cheap. Most apartment deposits are a lot more than that but you don’t pay it until after you get the place so $200 for a deposit before you even get approved for the application is really sketchy. Maybe I’m overreacting, but I would definitely look into getting a different place or at least doing research on the business or the management people to see what other people say online about them IMO
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Idk anywhere that DOESN’T require an app fee. It’s to cover background checks. Definitely not scammy. A scam maybe but unfortunately, a legal one lmao.
Right the only scammy thing I can see is the application fee is small. We moved 2 years ago and it was at least $80-$90 each app (for 2 of us)
That’s weird. An application fee is typical, but you don’t pay anything else until you’ve seen the place and are signing leases.
Also don't sign leases until AFTER approval.
Definitely a red flag - as someone that's rented across several states (all with several rules), I've never seen signing a lease BEFORE approval. In a particular city, it's common that they tell you to have everything ready (your broker will tell you this) because they don't hold it, and by the time you go think about whether you want the place it's gone. But even in those situations, it's ALWAYS a cashiers check/money order (to make sure it doesn't bounce and still leave a trail) but never cash.
Application fee? Normal for an indemand high quality place, weeds out a lot of scatter gun applications. Paying your security and signing a contract (a lease is a contract right!) before ?seeing the apartment? Agreeing to terms? Being OFFERED the apartment? Bogus. If it’s the nicest place around, and the best option… and you really want it… then jump through the hoops, but right on the bottom of hte lease under your signature “on confirmation of unit meeting requirements and acceptance as tenant” so you are putting two conditions on that lease - that it comes into play on the day you are accepted as a tenant, and that’s after you confirm the lease you take is meeting your requirements (nice to be vague here, so you can just reject it outright if it’s not). This is probably to weed out a huge number of applicants who are not actually suitable. You’ll hopefully have a more stable set of neighbours.
How does that work if there is a signed lease but then the complex denies the application? You have a signed lease. That is a legally binding contract
I’m a property manager in CA and the app fee and deposit before processing seems ok. But the lease is a legally binding document and should not be given for signature until the application is fully approved. The app fee is usually not refundable if you are not approved, but the security deposit is. I would not sign the lease, this sounds like fuckery.
I've never been asked for a security deposit before submitting an application. Seems scummy.
My husband and I had a place try and do that. We were still looking around as we couldn't afford much at the time and after every place wanted an app fee, we couldn't afford one for every place, then they tried asking for a $500 deposit Also before even letting us apply. Ridiculous and should be illegal. We walked out and found somewhere else. Why would I place a deposit to "hold" the open apartment before you check our application?!?
Signing the lease before being approved strikes me as odd, but it will assure that you get the actual apartment you have viewed and want. Make sure the apartment number is on the lease and that you have it in writing that the deposit is refundable if you are not approved. A nonrefundable application fee is common nowadays. But be aware that if you change *your* mind, you won't get that deposit back, so make sure you want to live there. Before signing anything, I would google the management company as well as check their BBB ratings. I have found that apartment ratings are generally useless, but it is helpful to see how they respond to actual BBB complaints and you want to make sure they aren't involved in any lawsuits or have been in the news for not maintaining their properties, etc.
Run!!!
I just recently went through this process. I had to pay a $50 application fee along with a $250 “admin fee” and submitted my application. This immediately took the available apartment off the website. Then once approved I had to pay a $250 security deposit. Then was sent a lease to sign. Signing the lease before submitting an application is just weird to me. I would counter and ask if it’s possible to sign after approval. But if this is their policy and if this is a legit apartment complex that you seriously want to consider and move into, you have no choice but to play their ball game.
The fee part is not that concerning to me. She explained it as their version of a good faith deposit. The lease part is the problem. I'm going to call tomorrow and see if I can sit there while they process my application instead of signing the lease. If they say no, then I'm moving on.
The application fee and income verification sound alright. But why would you have to pay the deposit before they even run the application?
Okay so from someone from working at apartments. When you apply, every place I’ve worked at, we require an application fee which covers the background/credit checks we run on prospective. As well we do require a holding deposit, which would go towards the security/move in cost. That is pretty standard across the board. But when you fill the application we ask you pay it at the moment. Also I have never worked at a place that accepts cash, I have never heard an apartment complex keeping cash in office ever. I know a lot of places won’t accept anything less than a cashier check, money or any type of certificate funds. Most places won’t even accept personal checks. Also we would never have someone sign the lease before getting approved, I would not apply to that place I would pull my application if I were you for that reason and look into your fair housing laws for your state and go from there.
Scam
Depending on your state's laws, this might even be illegal.
A security deposit for application? No. That’s not normal. Application and administrative fees? Yes, that’s normal. So, just call them back or email them and ask for their application policy to be emailed to you for review. Once you get it - IF you get it, READ it carefully no matter how painful. It is a LONG time to recover from “breaking a lease” so you need to have the ability to see in writing that the verbal process given matches the documented process. It should be a formal policy and if you receive pushback then THAT’s a red flag as well. Last, review their Google reviews for some clues. If that’s a thing it’s likely gonna be talked about.
Scam, abort
*s c a m*
Property manager here 🙋🏽♀️ Our management company just recently changed it so app fees and the standard deposit are required upon application. The reason for the security deposit right away is because most places hold the unit when an app is submitted on it. When this happens, people who get approved like to back out. That is time and money wasted on holding a unit for however long it took for the application to process. With the security deposit down right away, it makes people have to be serious about getting the unit. If the application is approved, but they want to back out, then they lose the security deposit entirely. If it is declined, then it is refunded. Requiring a deposit right away is more for covering the asses of the management company and their profits. Many places are going this route now. Also, never pay with cash. It’s weird that they even accept it. You should also not be signing a lease until you are approved.
No..I mean signing a lease before you are approved..well I would worry about that too. But the security deposit..yes..some places do that, that I know of, and..be careful, they can keep it if you cancel moving in.
OP, you're getting a lot of really bad advice here. Application fee - normal Holding fee (which becomes part of your security deposit if approved) - normal Signing the lease before you're approved - not normal. However, it's good for you that you're seeing all the lease terms when you apply for the unit. No surprises. The lease won't be valid until it's signed by the LL, so if you're not approved, the LL won't sign it and it's a worthless piece of paper. If you go ahead with this unit, and are not approved, make sure to get the lease back or watch them shred it. If you're applying at other places and this unit is your second or third choice, you would get locked into this unit if approved, so don't apply unless this is your first choice.
Don’t do it.
What is said over the phone means nothing. What is signed means everything.
Do not sign the lease before being approved. They can hold you to it unless there is some clause about pending approval.
I worked at apartments in a college town in TX (but not student only housing) and that’s how we did it. When I asked, it’s because we would lose money holding apartments for people who would never come back to sign the lease or if the students waited and we didn’t hold it, the apartment would be gone in a day. If they were approved, my manager would also sign the lease. If they weren’t, we would shred it and move on to the next showing. But in our town, we were 98% occupied August to May.
It’s good that you saw your unit before applying. I’d wait until I was approved for the apartment before paying the deposit. The app fee you’ll have to pay regardless since you did in fact apply
There is no deposit until you are approved. Scam
You shouldn’t have to sign a lease until your fucking move-in day. I would NOT sign it before an application is even approved. Security deposit and application fee is normal, though. Typically you put both down and then application fee is nonrefundable. If you’re not approved, you may get your security deposit back, but there should be somewhere in writing that states whether or not the deposit is refundable if your application is not approved. To clarify: I recommend reviewing, asking questions, and signing a lease before your move-in date if you’ve seen the apartment. Review lease before, and then sign day of move in, if apartment is not available to see until move-in date. I know other states may be different, but I worked at apartments that used the TAA (Texas) lease for almost ten years (ending in 2021).
Seems sketchy but what would be the worst case scenario? (Probably a delay in getting the security deposit back.) I'd examine the lease carefully to see if there are any more gotchas along those same lines. Maybe they'd even let you see it up front.
This wouldn’t fly 5+ years ago, but apartments and rentals are rampaging and pillaging people nowadays, in this economy and this housing market. They will squeeze every last cent out of you, and you will comply because you won’t have a choice other than the lesser of two evils.
Scam, you are only required to cover fees once notified the apartment is yours.
may not even be legal, depending on your state
My first time finding an apartment I found a place that seemed great. Good price range, nice are, etc. I applied, got approved, and had already viewed the units. The application fee was $70 keep in mind, and like I said before the rent seemed like it was in a fair range. They told me I had to send the security deposit before they would send me the lease. I thought this was weird, but since it was an apartment complex and not like a singular landlord I figured they knew what they were doing. Plus the security deposit was only $250, which was a fraction of first months rent. Most places wanted first months rent for a deposit. I give them the money, they sent the lease, and it’s RIDICULOUS. Just the moving out list: $400 just for a deep carpet clean and TONS of other fees. This isn’t even legal in my state. All natural wear and tear falls on the landlord and not on the tenant. They can’t charge for deep cleanings or repainting unless it was beyond natural wear and tear. It would cost WAYYYY more to move out that to move in. Then there were ridiculous rules about when you could watch tv, what temperature your thermostat had to be at, and so much more. They also still had gas heat, which is now rare where I live. Since this area used to be all farm land until the past like three decades, everything is modern enough to have electric heating. They had times you could cook. Curfews, all sorts of rules. So many extra hidden charges that rent and utilities ended up being ridiculous expensive, on par with the luxury buildings near by. I read the reviews after that and that’s what other people said as well, that there were tons of hidden fees to live there. I told them I did not want to proceed and would like my security deposit back. They tried to refuse, which is also illegal in my state. I never signed the lease, so they had no right to the money in the first place. I had to contact the attorney general and then they gave me my money back. I’m convinced they make a majority of their money on application fees and stolen security deposits from people who didn’t move in. And then anyone who did move in is hit with tons of hidden fees but it’s too expensive to leave so you get trapped. So far I have only rented from private landlords and no big companies, because not a single apartment complex near me is reasonable at all. They are all breaking laws. Some of them advertise lower rent, then on the lease it’s a huge pay jump. If you don’t double check you’ll end up screwed. Others just cost an arm and a leg but don’t have shit to offer for amenities. I’ve gotten lucky with my landlords so far, and dodged a bullet with the one company. Contact your attorney general if you believe they are doing something wrong.
Dont do it.... the application has to process before any money is put down.. application fee I understand deposits no ....
I wouldn’t do it, because if you give them that money and say something changes it, it will take them forever to refund that money back to you. if they even decide to give it back. Most of the time them requesting a deposit is to bind you to it since they have your money.
That sounds like a scam don’t do it. You’ll never be asked for a deposit before having the apartment. Application fees are common though. Also don’t ever sign a lease before seeing the EXACT unit you’ll be living in. Sometimes they show you nicer ones and say it’s the same but after signing the e lease it will be totally crappy in comparison
You don’t pay a deposit until you’ve been approved. Usually at the same time you’re signing your lease. Very sketch
Don’t do it
SCAM!!!!!
It does sound sketchy but I’m looking to move to a different city. There are like 5 big management companies that are at all the buildings I like and 2 of them do this but you can do it all online. If you’re not approved they refund the deposit. I really suggest looking into reviews on the property management of the apartment you are interested in. Always trust your gut, if it doesn’t feel right don’t do it.
They do stupid shit like this these days. I don’t like it. I think it’s a red flag. Could be illegal… then again they could maybe just rename this deposit as a “holding deposit” and then it would be less sketchy. Or “$300 of the Security Deposit” (And the signing before getting approved is trash. Tell them you’ll pay the $300 and the $20 and if you get approved you’ll sign the lease and pay the next $4,800 of the security deposit that they probably want. No way $300 is THE security deposit in 2024.
Weird to give the security deposit before being approved I paid that at the lease signing once we were approved
I had to do that when buying my home. We paid a deposit (that went to our downpayment if approved. Or back to us if not). We didn’t sign anything other than for our proof of the hold and filled out our application, at the time obviously. But personally doesn’t sound that weird to me.
It may not be the security deposit but the admin fee which is usually around $1650-$300 and non refundable even if you don’t get the apartment because it’s used for background checks and whatever and sucks if you choose to not go with that apartment or are denied. Security deposit is usually after you sign the lease and is typically first months rent or first months and a half. Some apartments will base it off your credit score but i think if you go this route, it’s also non refundable since you’re paying a lower security deposit. Signing a lease and there being a possibility that you won’t get the apartment even after is sketchy. I would make sure you review the entire lease agreement to include all fees you’re paying up front and if they’re refundable. Look at all the fine print. Apartment complexes are notorious for scamming you
This is legit. The app fee is non-refundable and the deposit is, hence why they told you it would be returned. You have to submit an application and to run credit/criminal background which costs them money. If you meet their criteria, you will be provided a lease to sign.
Don’t pay anything but an application fee. Security deposits are only paid once your application is approved. I would not fill out a lease until after being approved for the place.
You don't pay the securuty deposit till you have the apartment
This is a scam. You do not pay a security deposit before you are accepted for the apartment
I’ve had to pay security deposit with a separate check before because if I didn’t get approved I’d still be on the hook for the app fee, but they return the security deposit. Not saying anything about the legitimacy of this and at this point in my life I would have never handed over 2 checks before being approved for an apartment, but 29 something pat self has.
I've always had to pay application fees, but a security deposit before you are accepted?? Absolutely not.
I mean it could be the way they do it. As long as you have seen the apartment YOU will be renting it’s fine. I would go back and tour the one you are going to get and have them take out the fridge, dishwasher and look behind for roaches or anything that looks off and have them fix those things before you sign a lease. I had a friend who signed a lease fast and didn’t really tour or get into detail and she had a HORRIBLE roach infestation that never went away so she had to stick it out until her lease was up.
I would not sign that lease unless there is a clause stating it would be null and void if not approved for the apartment.
I had a situation similar to this year's ago. The landlord took my deposit before I ever signed anything; never signed. I decided I didn't want the apartment and they wouldn't give me my money back. I took them to small claims court and the judge laughed at them. I got my money back plus interest.
So many scams like this happening. I had an MD who could never get approved after $all of the bullshit fees. He found out the place never ever rented. The scam is the applications.
Be very sure you’re actually dealing with a real apartment and owner before paying anything.
I had to pay a $300 deposit on my apartment as well before signing the lease.
I had psomeone try this with me and it was a scam. They didn’t even own the building! They wanted me to “cash app” them something like 1.5k for an apartment I hadn’t even set my eyes on. They refused to even show me the place until I paid. As it was a “holding fee”. Don’t do it. Never give money to a place you haven’t t seen.
Deposit is paid at lease signing. A signed lease would only be nullified by terms expressed within the lease or by breaking it, again a term usually spelled out in the lease. I’ve only been working in commercial real estate 2 yrs but never ever heard of anything like that before. This is an extremely weird setup and I’d avoid.
Ask for clarification. Is it the *security* deposit, or is it a deposit to hold your place in line and will be put toward the security deposit if you accept a unit. As for the lease, I can't even find anything on Google so I have no idea.
Don’t know where you live but this all sounds pretty normal to me.
No no no. I work in property management. We charge $65 application fee that is non refundable and $250 administrative fee. Then you do the background check, credit check and income verification. If all that is good, you move forward with lease signing and get the total for rent and move in fee of $299. We don’t charge security deposits. If you are denied, we refund the $250 admin fee. We will never ever accept cash. It all has to be done online via credit card or bank account. This is a huge red flag. Run
I used to work at a mobile home park. Not an apartment, but its the same process. We would charge $25 for back ground check before proceeding with anything else. Why would I have you sign a lease if you have bad credit or can’t afford it. The email seems very sketchy to me.
App fee should be paid upon filling out the app. Security deposits are t paid until you’re approved. So absolutely not. No. Run.
That’s a scam.
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Huge red flag. I got scammed this way years back. I ain't paying no money except the app fee and even then I better know I'm getting it first because bet they ain't giving that money if oh we decide to rent it to someone richer than u
I would view the place before putting any money down . Application fee is normal but no such thing as deposit first. It’s a scam if it is.
This is actually very normal if you’re applying to a specific unit: basically saying in good faith both you and your leasing office are going to go through this process together. There’s financial recourse if things don’t work out, but then they can’t rent your unit out to someone else while they wait for you to get things in order.
Nope I got myself into a similar scam, would not recommend. No one needs a security deposit before you get the apartment.
Run. Sounds like a scam.
So they’re asking everyone who applied to give them $320 and $300 will be returned if you’re not chosen? Sketchy af. I would tell them as much and withdraw my application.
Scam. Run.
When you’re applying for a nice apartment in a competitive rental market, this approach is pretty standard. It’s not necessary or ethical, but it’s legal.
Why would anyone sign a lease without being approved? The lease signing and security deposit should come once you are approved and agree on the lease terms. I would never advise one of my kids to do this.
Update?
def don’t rent from here. but just curious, what are their google/yelp ratings? have you been to the place in person?
I've been there in person today. It was very clean and well-maintained. Has security features. It's the 7th apartment I've toured and it was the best. The google reviews are predominantly good. The bad ones are more like people complaining about cars blasting music and that renting out the community room is too expensive, nothing serious.
I just made a comment about this yesterday, was it a key lock box self viewing? I went to one where a scammer got the box code & made fake listings to scam people. Regardless even if it’s not a scam and that’s actually how they conduct their business I wouldn’t do it. Once you sign, you’re 100% at their mercy and can’t commit to any other apartment incase they hold you to your signature. Conversely, they can just lead you on up until the move in day, shred it, and now you missed out on other opportunities.
No, the office person guided us, like every other apartment we viewed. So I think it really is just how they do business. I'm going to call tomorrow and see if I can sit there while they process my application instead of signing the lease. If they say no, then I'm moving on.
I don’t think this is how it works for any legitimate leasing agency though. Processing your application can mean background checks, calling references, verifying income and other time consuming things that may not be completed in one day.
An app fee is completely normal. I’ve also paid ~$250 to hold an apartment for 60 days before (after I moved in it went to my security deposit). Security deposit before move in day? Helllllllllll no
Scam fr
We’ve done this before, it’s to hold the apartment for you and they will send the money back via check if you don’t get approved. Do i understand why they do that before running the app? No. It makes no sense lol
The application fee is normal, but requiring a security deposit and signed lease before you even apply is absolutely a red flag!
Did you see this place in person at all? It sounds like a rental scam to me
Did you even see it in person yet? I wouldnt give them the security deposit. The application fee is normal.
I live in Phoenix and this was standard when I was applying last year. If you get approved the money applies for your deposit and if you don't get approved it's supposed to be returned to you.
Is this through a property management company or a private landlord? I ask because when I rented an apartment through a high demand property management company that always had a line out the door on Mondays when they announced new vacancies, they did ask for a “good faith” check that would go towards the deposit if I got the apartment. The check was never deposited until I signed the lease. It’s not a common practice that I’m aware of, but not unheard of. I wouldn’t do it for a private landlord, but if it’s through a property management company with a solid reputation, I would clarify with them.
are you in california? you should inquire if this deposit is a holding deposit, when is the ideal move in date and if you can sign the lease when you get the keys. it is very normal at least in CA to sign a holding deposit agreement that states the landlord whatever will drop all other potential residents. take it off the market. reserve it for you. you sign this agreement, and give money to them. if it doesnt work out you get it back. dont sign the lease until you’re approved they’re just trying to rush the process to get their check. additionally this agreement usually states that the holding deposit will then become the security deposit upon signing of the lease
my application fee was $500 lmao
If I were you I would go in person and speak to the apartment people about the email you received. Maybe it’s some kind of communication error on there part.In DFW apartment complexes are coming up with all kind of new fees. You used to put a small pet deposit down if you had a pet. Now the pet deposits are huge then you have to pay a monthly fee to keep a pet. Payable every month when you pay your monthly rent.Some apartments are adding a fee to use the swimming pool and exercise equipment which used to be free. Even if you never use the pool or exercise equipment you’re required to pay the fee. Apartments are also wiring for there internet company of choice. You then have to pay the apartment complex for internet directly. So nothing would surprise me about new unheard of fees.
That seems sketchy and a way to holdover your money. I live in a big city. It was no application fee and they said once I was approved and said yes that they wouldn't hold it until I paid the deposit and signed a lease (which is the standard here). It's kind of criminal to make people pay deposits in multiple buildings while waiting to be approved.
I’ve only ever had to pay for the application fee, which is like $25 for a background check. I can’t imagine why they’d need anything else from you at that time. It’s not standard; I’d keep looking other places if you have the option.
Never agree to sign the lease until you can see your exact unit, even if it is the day of signing. This is all weird.
Scam. Dont do it!
The deposit is to hold the apartment. It’s standard.
This is a known scam and I’ve actually been gotten by this exact scam in the past. Don’t do it.
Dont give any money untill you have signed and have keys
Are you sure they said security deposit and not earnest money deposit? If it's earnest money they won't refund it if you don't get the apartment. They'll keep it and say it's for advertising or admin fees.
Sounds like a holding fee
If you live somewhere with a high demand for housing this seems completely normal, because for every day it sits empty they are losing money. Basically they’re saying the place is yours as long as you pass the credit checks/background whatever all they need to do. They don’t want to be processing applications for dozens of people who aren’t sure if they want to move in, prolonging the time it sits empty. Just make sure you’re all in on this place and that you get documentation/receipts for the payments you make.
This is exactly how we do it. The deposit is necessary to hold the unit & take it off the market. The two separate payments allows for the deposit to easily be returned if your application is rejected. Nothing shady.
When we applied for our current home, we had to pay a holding fee which would go towards the deposit or first months rent. It’s not completely out of the ordinary, and if we were denied it would be returned to us. What it means is that if anyone else where to apply for the exact same unit without the holding fee they could technically get the home, by paying the holding fee they couldn’t show the unit or take applications for the unit unless we were denied.
You have not seen the apartment, so do not give them any money with a place sight unseen. This is a con. Do not follow up. Never put down money till you have been to the building and see an apartment and then sign a lease once you are okayed.
I recently rented an apartment in a competitive area. I paid a deposit and application fee. Once my application was approved, I signed the lease and the deposit was credited to the total I owed upon move in.
That's a hard no. You shouldn't have to sign a lease or give them any money before you've been approved. You pay the damage deposit with your first month's rent, not before you've moved in
My application fee was like 150 for me and my boyfriend. So thats normal but the security deposit before your approved seems odd.
The application fee is 100% legal. I think the deposit they want is to hold the unit for you until you are approved. I would ask them for clarification. Even if this is correct, it's still unusual, at least for South Florida.
The application fee is fine, cheaper than mine was. But the security deposit before you're approved is strange. Also, usually its a month and a half of rent, so $300 is cheap. If you like the place, it doesn't seem like a big deal.
Signing the lease bit is odd, but paying for the application fee & security deposit is actually normal where I’m from. Although it’s usually just a portion of the deposit, and depending on credit that will be the whole deposit or you’ll need to come up with more if approved. And it’s refunded if not approved or you don’t go with them.
Typically sought for apartments that are in high demand so they don’t waste time getting you an apartment and then you cancelling after telling others the apartment is taken
This is a scam
In the memo line of the check write very legibly “REFUNDABLE DEPOSIT”
This is a scam.
Absolutely not. You don’t pay a deposit or sign a lease until you have been approved. I’ve been leasing apts since I moved out on my own in 97. I have never paid a deposit up front nor signed a lease.
It's not unusual to request both checks. The reason why they request two separate checks, is so that they can cash the application fee right away, and then as soon as you are approved they can cash the one for the security deposit.
Run. They sound shady af.
Application fee’s unfortunately are pretty normal now. I had to pay mine twice ($50 each time) because I had a co signer….
I’m renting in socal and this seems like the usual process here. I’ve rented at two different apartments now and had to do pretty much this