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ebes · May 21, 2009, 01:55 PM

My sister gave a landlord a deposit on an apartment to hold it for her. She has not signed a lease. She found a better deal elsewhere and asked for her deposit back. The deposit was given 2 weeks ago. When she asked for her deposit back they refused saying they haven't been able to show the apt. Are they allowed to keep her deposit when she hasn't signed a lease or even a hold agreement. She resides in Kansas. (Don't know if laws differ state to state)

this8384 · May 22, 2009, 06:55 AM

Of course they're allowed to keep it. Why would your sister even ask for it back? She asked them to hold an apartment for her - it's not their fault that she backed out.

Depending on the amount of the deposit, the landlord could even sue your sister for more if they can prove they lost money by not renting the apartment to someone else because they were holding it at your sister's request.

ebes · May 22, 2009, 10:56 AM

Ok, the apt does not become available until July 1st. There is someone living in there already. So they are not losing out and still have over a month to rent it out to someone else before they lose out on anything at all. So does your answer still stay the same?

this8384 · May 22, 2009, 11:25 AM

See, that's part of the problem. We can't give you a legally accurate answer if you're going to come back and say, "Oh, by the way..."

How much are we talking? A hundred or two, or a thousand?

When did she pay the deposit? When did she notify the landlord that she wouldn't be moving in? And yes, the landlord MAY have lost out because when they held the apartment for your sister, they turned away prospective tenants.

ebes · May 22, 2009, 11:46 AM

Sorry about that, this is my first time using this. She paid it two weeks ago, and she told her two days ago. She paid one months rent as is the normal deposit amount here ($425). Lives in a college town with a great location so will be easy to find another tenant before July 1st.

ScottGem · May 22, 2009, 12:20 PM

Generally a deposit to hold something is not refundable. Since the hold prevents the seller from trying to sell the item, a refundable deposit benefits the buyer only.

I'm assuming she got a receipt for the deposit. Does it say anything about being refundable or not?

The catch 22 to this the landlord has to mitigate damages. So, if the landlord does find another tenant to move in on July 1, then they have no reason to hold your daughter's deposit. So I would check to see if someone moves in on July 1, then ask for the deposit back.

P.S. in reference to the comment about giving us full info. We can only advise on what you tell us. So, you really should think about what is pertinent info to include in your initial post.

excon · May 23, 2009, 06:24 AM

Originally Posted by ebes

Ok, the apt does not become available until July 1st. There is someone living in there already. So they are not losing out.

Hello ebes:

You have NO idea how many people came by to rent the place on July 1st. That they turned away. Therefore, you don't know whether they are losing out or not.

excon