Standard Rental Practice?

[funkytuqe]

I am wondering if it is standard practice for a management company to ask for the deposit up front with a rental application. I am looking at a townhouse this morning managed by Equity Capital Management and they are asking for the damage deposite up front (cash or certified cheque) before approval. We will get a reciept and if denied money refunded. Is this normal? Most ask for deposite after aproval to hold the rental property.

Cheers

[joegrang]

It depends on the company. I have seen both. Typically, they will ask for a deposit to ensure that you are serious about the property. They don't want go through the screening and credit checks on you only to have you walk away.

Rub is that if you are approved and you decide not rent for some reason I believe they can keep the deposit as well.

I would recommend that you negotiate a smaller deposit so that if anything happens and you cannot take the rental you are not out the damage deposit.

[funkytuqe]

Thanks joegrang. I apreciate the wisdom. Having owned for over 10 years and never rented in my life, this is a new experience for me.

[raceman6135]

And of course, get it in writing that the deposit you are putting down will be refunded 100% should they elect to not sign a lease with you.

Whether you pay cash, cheque, certified cheque, etc etc etc, get a receipt.

CYA as much as possible in case things go awry.