MetaChat - AskMechaRenters:

MetaChat is an informal place for MeFites to touch base and post, discuss and chatter about topics that may not belong on MetaFilter. Questions? Check the FAQ. Please note: This is important.

07 August 2007

AskMechaRenters: TheDude and I are in the process of renting a house...→[More:]and the rental agent just mentioned that we should pay our security deposit (one months rent) when we turn in our application (this is on top of the application fee), so that they won't show the house to anyone else. That money would be refunded if our credit check is declined.

This sounds WTF stupid to me. They don't take personal checks, so I'm handing them a $900 money order with the promise that they'll give it back? Furthermore, I've never heard of this practice before.

If TheDude and I turn in our application first, and it's accepted, why do we care if they show the house in the mean-time? Has this happened to anyone else? Does it sound stupid? Shoudld we keep looking?

Gah, my heads going to explode.

post by: muddgirl at: 13:47 | 8 comments

If TheDude and I turn in our application first, and it's accepted, why do we care if they show the house in the mean-time?

Just because you're behaving ethically doesn't mean the agent/owner will. If someone comes in, sees the place, and hands them a deposit and first month's rent, the owner might magically decide your credit's not good enough and go with the people who've already given him money.

Basically, the agent is saying that you should give the owner money because he may be unethical. Which is a crappy reason to hand someone a money order, really, without any sort of contract being in place. But I do know that fairly similar things are standard practice in parts of the country where I've rented -- maybe ask around and see if this is usual?

posted by occhiblu 07 August | 13:52

When will the money be refunded? 2 days? 6 months? Without a contract what do you have to show that it was a refundable deposit?

posted by arse_hat 07 August | 13:57

I wouldn't give anyone a security deposit unless you are actually signing a lease.

posted by fallenposters 07 August | 13:59

If they're legit, having a big chunk of your money to look after is a hassle not a bonus for them, especially if they end up having to give it back.

If you genuinely think they might scarper, you shouldn't be doing business with them at all.

posted by cillit bang 07 August | 14:07

Depends on how tight the housing market is. I think I lost out on a house here last summer because I didn't do it - it didn't occur to me that I should have just handed the (flaky) landlady a big ole' check when I saw the house but in retrospect I'm fairly sure that's what the person after me did. If you're in a normal rental market, I wouldn't do it. If you're where I am, where rents have nearly tripled in the last 2 years and there are way more people looking for houses than there are houses to rent, yeah, go for it. I still wish I'd gotten that house instead of the one I ended up with.

posted by mygothlaundry 07 August | 14:26

Then again mgl, a guy in Toronto a few years back scammed $65,000 in one weekend doing that. He just rented an apartment then put an ad out and took deposits then fled.

posted by arse_hat 07 August | 14:40

Yow. Yeah, there is that - and the refusing to take a personal check is kind of suspicious. Hmmmm. Well, then, ignore me!

posted by mygothlaundry 07 August | 15:10

Thanks, guys. It was difficult for me to articulate to TheDude why I was squicked out by the whole thing. The rental market is a little tight right now, since the local colleges all start up within the next few weeks. However, I'm not going to do something that I'm uncomfortable with, so we'll just see what happens.

posted by muddgirl 07 August | 16:25

← AskMecha: Need to find a series of commercials || This lunchtime ... →

HOME || REGISTER || LOGIN