My new landlord wants the security deposit to "hold the unit." I and they signed the lease - doesn't that "hold" it? I will not have the money for the deposit until I get back my deposit on our current rental. Do I have to pay now or can I wait until we move in?

(We are in Hawaii)

Normally the deposit is given before the move in date to secure the residence.

Tick

Normally the deposit is given before the move in date to secure the residence.

tick

Here is what the law says:
§521-44 Security deposits. (a) As used in this section "security deposit" means money deposited by or for the tenant with the landlord to be held by the landlord to:

(1) Remedy tenant defaults for accidental or intentional damages resulting from failure to comply with section 521-51, for failure to pay rent due, or for failure to return all keys furnished by the landlord at the termination of the rental agreement;

(2) Clean the dwelling unit or have it cleaned at the termination of the rental agreement so as to place the condition of the dwelling unit in as fit a condition as that which the tenant entered into possession of the dwelling unit; and

(3) Compensate for damages caused by a tenant who wrongfully quits the dwelling unit.

That seems to indicate that they cannot hold it until I am a tenant of the property, but I'm not a lawyer. Any lawyers out there?

What you are siting is correct, but that is for the security deposit already on a property. The property is inspected while the tenant is in residence before move out. If no damages the security deposit is refunded, if damages, then it is taken out.

You are asking if you have to put down the security deposit before you move in, I am saying yes you do, to secure your lease. Your new landlord doesn't have to wait until you have the money from your old residence. You are supposed to have the money available.

Yes, there are lawyers here, you will just have to wait. We are all volunteers here.

Tick

There is no valid contract ( contract law) until bascily something of value is exchanged ( in your case money) in their case rental.

Normally if you pay the first month rent now, they will hold it till the day you move in ( and you will have to pay deposit prior to actually moving in)

if you don't pay, they don't have to hold it, and can rent it to someone else who will pay for it.

So since there is no valid contract till money is paid, you can hope they have an empty apartment ( or even hope they will still agree to rent, since they will be worried about your ability to pay)

But once you have a valid contract, they need the deposit to protect them from your not paying rent ( since once in place the entire lease contract is to be fulfilled.

But yes, you either pay ( at least some level of payment agreeable to them) or there is no valid lease yet and they do not have to hold or save an apartment for you

Example, what happens on your move in day, if you just don't show up, they are out any rents till they find a new renter, and other costs. With that, this is to protect them if you decide to back out. ** and read on hear how many people come asking how to get out of lease since they had not moved in yet.

Actually, Chuck, a promise to pay in the future constitutes adequate consideration for a contract to be valid.

But in this case, the OP needs to read the lease. That's because the issue of whether a deposit is due at signing or at delivery is not an issue of law but rather is part of the deal made between the landlord and the tenant. Most form leases say that the tenant will pay the deposit at the time of signing of the lease. That's because, as tickle said above, the landlord wants the money to secure the deal. This is a business term of the deal and is completely normal and customary.

So read the lease very carefully and see if it says that the deposit is due when they give you the keys. If not then the landlord has decided that the deposit is due upon signing the lease and has made that part of this deal.

Thanks for the responses. I guess my question is whether the security deposit can be used to secure the deal, given the legal uses of the deposit I quoted above.

Hello b:

Your deposit serves TWO purposes - one legal, the other business. From a business point of view, and as Lisa said, your landlord can require you to pay when you sign. Once you move in, the deposit takes on another role.

excon