State Specific Question About: GEORGIA (GA)

Here's the wording on mine:

Holding Fee Receipt

This document acknowledges receipt of the sum of $ _________ by WMH (Landlord) from ____________________ ("Applicant") as a fee to hold available the rental unit located at ADDRESS until ___________ 2014 at 12 o’clock noon.

By such time and date, if Applicant is offered, and Landlord and Applicant both sign Landlord's Residential Lease Contract, the holding fee will be applied towards the total Security Deposit due of $____.00. The remainder of the Deposit is due by ________ , 2014. First month’s rent is due prior to occupancy.

The offering of a Residential Lease Contract depends upon Landlord receiving satisfactory report of Applicant's references and rental history and other screening criteria.

Landlord and Applicant agree that if Applicant fails to sign an offered Lease or to pay the remainder of the security deposit as agreed, Landlord may retain this Holding Fee to compensate Landlord for lost income from other potential tenants.

This Holding Fee will be returned to the Applicant if the Applicant is not approved as a Tenant. If Applicant has provided false information on their Application, however, and this is the reason for dis-approval, Applicant is not entitled to a refund.

Here is one that I did in late May. The applicants wanted the house badly enough that they were willing to wait until Aug 1. The applicants paid the holding fee in late May, which became the security deposit a few days ago when they signsd a lease and paid August rent.

The departing tenatns finished moving out mid-afternoon yesterday. I had already given them back half the security deposit in early June. I gave them a check for the rest of their deposit (isn't it nice when the house is left in such good shape).

I changed the lock cylinders, called the new tenants and said they could move in a couple of days early if they wanted. I met them, gave them the keys - and since they had boughht the guest bed from the departing tenants, they stayed overnight yesterday.

HOLDING FEE – completed in duplicate

A holding fee of ¬¬¬¬¬¬¬¬¬¬ $xxx has been received for the rental located at xxxxxx.

No later than July 28, 2014 a one-year lease will be signed that begins on August 1, 2014 . A full month’s rent of $1135 will be paid at that time. Upon signing of the lease and payment of the $1135 rent, the holding fee of $1135 paid today will be applied to the security deposit, making a total security deposit of $1135.

In the event that the applicants fail to sign the lease by July 28, 2014 or fail to pay the additional money due by July 28, 2014 or do not take occupancy, the holding fee will be forfeited and retained by the owner.

______________________________________ _____________________________________

Date Date

_____________________________________

Carolyn xxx , Owner Date

In my case, I already had checked out the applicants and approved them. The night before I was to show them, they asked me to please go ahead and send them the application materials. They showed up the next day with completed applications, documentation about income, proof that they owned a condo in another city and a copy of that lease, documentation about their current lease as renters, etc.

In WMH's case, she took the holding fee before receiving all of the application materials and checking them out, so she allowed for the possibility of rejecting them.

I don't do "holding fees." We accept "earnest money," a normal real estate function, same as buying a house. If I was to hold a unit, it would be at a reduced rent for the period, assuming non occupancy and no keys, if they later want to occupy early then normal rent would prorate.

It's something a judge can understand. To me as holding fee seems like a one sided benefit and if they sue you the judge will feel the tenant is taken advantage of.