Can a prospective Landlord keep a deposit?

Can a prospective landlord keep a deposit ($500) used to secure an apartment, if the prospective tenant changes his mind about wanting to rent the apartment (in Ohio)? No lease was signed, only an application with an agreement to run a credit report. An application fee ($30.00) was charged, and it was stated that it was non-refundable.

Generally, the security deposit is not given until such time that a lease is executed. However, if security deposit is deposited with the landlord, the prospective tenant is entitled to receive the security deposit back if she changes her mind before the execution of the lease agreement. The following provision of State of Ohio's Landlords and Tenants Act applies to security deposits pertaining to lease agreements.

Â§ 5321.16. Security deposit procedures.

(A) Any security deposit in excess of fifty dollars or one month's periodic rent, whichever is greater, shall bear interest on the excess at the rate of five per cent per annum if the tenant remains in possession of the premises for six months or more, and shall be computed and paid annually by the landlord to the tenant.

(B) Upon termination of the rental agreement any property or money held by the landlord as a security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant's noncompliance with section 5321.05 of the Revised Code or the rental agreement. Any deduction from the security deposit shall be itemized and identified by the landlord in a written notice delivered to the tenant together with the amount due, within thirty days after termination of the rental agreement and delivery of possession. The tenant shall provide the landlord in writing with a forwarding address or new address to which the written notice and amount due from the landlord may be sent. If the tenant fails to provide the landlord with the forwarding or new address as required, the tenant shall not be entitled to damages or attorneys fees under division (C) of this section.

(C) If the landlord fails to comply with division (B) of this section, the tenant may recover the property and money due him, together with damages in an amount equal to the amount wrongfully withheld, and reasonable attorneys fees.

Consult an attorney if you are not able to obtain your deposit.

Depending on the paperwork you signed, some deposit's are non-refundable. I hope you got a copy of it. If not request one. If the contract is unclear about the deposit being refundable or not, take it to small claims court. If it clearly shows that the deposit is non-refundable with your signiture your stuck. If it doesnt say anything definately fight for your money in court

If the application says the deposit is non-refundable. yes.

I thought that normally the deposit is non-refundable as well. But probably if you call and nicely ask for it, you might be successful in getting your money back.

that information must be on the application. if it states that the application fee was non-refundable then they should be able to get the $500 back.

the deposit i don't believe legally they can keep that if you have changed your mind on the place, however if your moving from one state to another the laws are drifferent from each state i would highly suggest you consult a lawyer

Check the Laws in your state. You may have to go to small claims court to get your money back.

Yes, if damages to the facility warrant it.

The problem with the response given by Eddy K is that it assumes that the Landlord Tenant Laws apply at all. In fact, the early provisions of the law state that it covers rental agreements. In this case, there is no rental agreement. Ohio case law has supported this premise. In one case, a landlord even gave a receipt to a prospective tenant calling a $750 payment a "security deposit." The court found that it is not a "security deposit " under Ohio law because a "security deopsit" by statutory definition can only exist when there is a signed lease between the parties. Further, nearly every city web site that offers advice to a prospective tenant states that a "holding fee", or an application fee is not governed by Ohio Landlord Tenant Law. Good luck, but i believe the landlord can keep your money.

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