I am a resident of Peoria, Illinois. On Oct 5, 2011. I made a check for $400 as reservation / reconditioning fee for a single bedroom apartment I was planning to rent. I asked the Property manager if they have a unit on the 1st floor that might be available within the month.

She said she'd look into it. I think she didn't bother since I already gave my reservation fee. But anyway, on the same day, I wrote an email to the property manager to hold my reservation until Monday Oct 10, because I would have to cancel my reservation if I was able to find a first floor unit.

I didn't get a reply to my email. On the 17th of Oct. I wrote another email to tell the manager I am cancelling my reservation. A few days after, I found out they had cashed my check.

I called to ask for a refund, and all she said is they don't refund the reservation fee but she will ask the owners. She said she will call me back. Up to this day, I haven't had any calls from her.

I haven't signed any lease, and I am really hoping to get the money back. Times are hard these days, and I am hoping for some consideration. I even suggested to have them take a part of the fee, but I haven't heard from them.

Please help.

The purpose of a reservation fee is to hold something so its not sold to someone else. Its also to compensate the seller for taking the item off the market in case the buyer reneges. So this way the buyer and seller are both protected.

So there is a good chance your deposit is non refundable.

Did you get a receipt for the deposit?

No, I was not given a receipt. I didn't ask for one either.

I will agree, when someone gives me money to reserve something. Be it a date to be married, or items for sale. Or if they give me money to hold a rental property, that is just it, if they use it, the money is applied to the rent, but I keep the money if they back out of renting, It is my payment for holding the rental.

Check with an attorney or legal aide service, from what I can tell, there are no allowances for non refundable deposits in Illinois. It might be as simple as having an attorney write you a formal letter requesting the payment returned, if, in fact the fee was taken illegally.

Illinois Landlord Tenant Handout

P.S. Every state is different. Fr_Chuck, for instance, can charge and keep the sort of fee you are talking about: Georgia Landlord Tenant Handout

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Originally Posted by CliffARobinson

from what I can tell, there are no allowances for non refundable deposits in Illinois.

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That doesn't mean they don't exist. The OP stated this was a reservation/reconditioning fee. This implies that the landlord took the apt off the market and may have done some work on it. By it's very nature, such a fee would be considered non refundable. Or, at the least, indemnify the landlord against loss. So it might be that the landlord is seeking a new tenant now. And if they get one, without incurring a loss due to vacancy they may yet refund the OP's money..

But its is my opinion, as a non-attorney, that the landlord would be within their rights to keep this deposit as reimbursement for their losses.

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Originally Posted by CliffARobinson

Check with an attorney or legal aide service, from what I can tell, there are no allowances for non refundable deposits in Illinois. It might be as simple as having an attorney write you a formal letter requesting the payment returned, if, in fact the fee was taken illegally.

Illinois Landlord Tenant Handout

P.S. Every state is different. Fr_Chuck, for instance, can charge and keep the sort of fee you are talking about: Georgia Landlord Tenant Handout

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I suspect the simple letter and meeting with the Attorney will cost more than the money being held. I would call this a reservation fee, not a deposit, so we are talking apples and oranges here.

(It's legal aid, not aide.)

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Originally Posted by ScottGem

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Originally Posted by CliffARobinson

... from what I can tell, there are no allowances for non refundable deposits in Illinois.

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That doesn't mean they don't exist.. .
But its is my opinion, as a non-attorney, that the landlord would be within their rights to keep this deposit as reimbursement for their losses.

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I agree with ScottGem. The blog Cliff linked to doesn't say that Illinois prohibits such a deposit, or requires it to be refunded. So it's a matter of establishing what the contractual terms were. Since the terms of the agreement weren't in writing, or perhaps weren't even discussed, it would have to be implicit; i.e.: the nature of a deposit. I believe that non-refundability (if the person makng the deposit changes her mind) is indeed so implied.

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Originally Posted by JudyKayTee

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(It's legal aid, not aide.)

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Hard to say. Cliff wrote "attorney or legal aide service". "Aid" is a synonym for assistance. An "aide" is a person who provides "aid". So, if Cliff meant, an organization which provides persons who provide aid (i.e.: an aide), he would be correct.

However I believe that a "legal aide" who is not an attorney would be treading the edge of unauthorized practice of law.

In my area "aide" is just that - someone who assists personally.

Didn't mean to change the tone of the thread. I just see "Legal Aide" all the time and that's NOT what it's called in my area.

Looking at the Illinois Legal Aid site, unfortunately, bb2011, this type of fee IS allowed in Illinois, and it IS non-refundable:

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A deposit may also protect the landlord if he holds a unit for you, but you decide not to move in. In that case, the landlord can keep your deposit.

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Illinois Legal Aid - Renter's guide to security deposits

Here's my experience - my late husband owned several apartment buildings (and some duplexes) in NY, not Illinois, but I don't believe the law is that much different. He maintained a reservation list. There was a very specifically stated NON REFUNDABLE fee with the RESERVATION. What did the prospective tenant get for his/her money? The background check was done when the person applied to be placed on the list. If everything was in order on the application, verified, that person was the first person called when an apartment was available.

If that apartment wasn't what the person was looking for he/she remained on the list and was first in line when the next apartment was available... and so forth. No one was on the list (usually) longer than 4 or 5 months because he had considerable property.

If no one on the list rented the apartment then my late husband advertised, took applications, found a tenant. It worked very, very well for us and apparently worked well for tenants because there was ALWAYS a pretty substantial list. We didn't hold a gun to anyone's head. They could have the background check run early with the reservation fee and be placed on the list... or not.

Not saying this is the circumstance here... but I see a difference between a deposit and a fee to be placed on a reservation list.

I read what you researched re: Illinois and a deposit. What did you research concerning a reservation - which is the question as I read it.

EDIT: Advised by PM that reservation charges are covered on the site posted. I must be having a bad day but I STILL don't see it.

Once again I'm asking the same question - where in the site posted is a RESERVATION DEPOSIT/RECONDITIONING DEPOSIT addressed. I see only security deposit and "advance" rent.

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What is a security or damage deposit?
A security deposit is money that you give to the landlord at the beginning of a lease, usually before you move in. A deposit may also be used to hold a unit for you while the landlord does a credit check or calls your old landlords to decide if she should rent to you. A deposit may also protect the landlord if he holds a unit for you, but you decide not to move in. In that case, the landlord can keep your deposit.

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Source: Illinois Legal Aid

Cliff, you keep posting the same ino on a security or damage deposit.

She's asking about a " $400 as reservation / reconditioning fee." That's not the same thing as a security or damage deposit.

I know what you've posted. I've read it and read it. It's a whole different subject.

If your research proves that Illinois uses the phrases interchangeably, please post that.

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Originally Posted by JudyKayTee

Cliff, you keep posting the exact same ino on a security or damage deposit.

She's asking about a " $400 as reservation / reconditioning fee." That's not the same thing as a security or damage deposit.

I know what you've posted. I've read it and read it. It's a whole different subject.

If your research proves that Illinois uses the phrases interchangeably, please post that.

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Cliff posted a paragraph from a site which discusses deposits. It is entitled something about a "security or damage deposit", but goes on to talk about a different thing: a reservation deposit. It doesn't matter anyway because, after all, it's just one person's opinion (whoever wrote that site) as to what the law says. That's why I believe the only way to really resolve the issue would be to check what the statutes say. And my bet is that they do not limit what a landlord and a potential tenant can agree to in an arms-length transaction.

The Illinois statutes on landlords and tenants seem to be here (765 ILCS 1005, et seq.), but may be elsewhere in the state statues as well (they don't seem to be very complete).

I can't find wording on reservations. I called a friend in Illinois. He can't find it. He also never heard of a "reconditioning fee." I can't believe the words are interchangeable but perhaps they are.

At any rate - I'm tired of bickering about it. If I get a 100% answer that doesn't involve someone's interpretation of the law, I'll post it.

Illinois here, and living right up the road from Peoria...

I checked various Peoria apartment sites and see lots of (free) reservation forms, but none that include "reconditioning." My guess is that this was a unique agreement for a unit in a very desirable apartment building and was between the OP and the property manager -- or maybe the $400 fee was mentioned in an ad. We don't know if the two parties talked about reimbursement of the fee.

If I were the OP, I would sweetly and gently pursue this with the owners themselves.

It's done in NY - it's a reservation fee and it's handled exactly the way I described it. It's not a word used in place of "deposit" or "rent."

Of course, who cares because I'm addressing NY.

UPDATE: Just got off phone with Peoria, rental agent - reconditioning fee is the wording to bring a residence up to current building code. For example, adding a fire escape, smoke detectors. Rental agent is very confused why applicant would be requested to pay this fee UNLESS applicant intends to use a space for a purpose other than it was intended. He referred specifically to changing a den into a bedroom.

Reservation fee is exactly that - it's the fee for putting a name on a list to be considered when an apartment becomes available. The prospective tenant is notified prior to the apartment being advertised. Not unusual in highly desirable neighborhoods.

As far as the reservation fee whether it's refundable is between the parties. As I said, the fee to bring someone else's property up to code is a mystery to him.