BEWARE OF PUTTING DOWN MONEY TO HOLD A PLACE

Most landlords will not ask you to pay any money until the time that you sign the lease for a specific apartment you've already seen. However, a few landlords ask tenants to pay a deposit to "hold" the place BEFORE the lease is actually signed or to sign a "pre-lease." This practice poses significant problems for tenants.

• You will lose your money if you change your mind 

• You will lose your money if you decide not to rent the place because the landlord will not agree to lease changes. If you want to include in the lease certain promises -- such as the landlord's agreement to paint before you move in or to give you advance notice before showing your apartment for rent -- your bargaining power is to say you won't sign the lease unless the promise is put in writing.   HOWEVER, if you've already paid a deposit to "hold" the place, the landlord will be able to keep your deposit if you don't sign the lease.   Hence, putting down money to hold a place is really just a way you limit your power to bargain lease terms.

• With nothing in writing, you will have paid money without being able to prove which exact apartment you are "holding," the amount of rent, the start date of the lease, or any other aspect of the deal you think you made.
• What if the landlord takes your money to "hold" the place, but then rents it to someone else anyway?  In that case, the landlord would only owe you refund of the money you paid.  If this sounds like a very one-sided proposition, it is.    

A tenant gains nothing by pre-leasing or paying to hold a place. You only put yourself at risk of losing money or feeling you are stuck signing a lease for a place you don't want or under terms and conditions you don't consider fair.   It is always best to pay no money until the time that you and the landlord sign the lease because you have agreed upon the terms and have already made all necessary changes to the contract.

This page was last updated on 2/19/07