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refund of deposit

exyeh

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I have worked with a renter and she paid a deposit on the unit (200). I have sent her a rental agreement waiting to be signed and exchanged emails for the terms... etc. for a few days. She wants to back out now after 2 days she paid for the deposit. Should I refund her 200 deposit?
 

hurnik

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I have worked with a renter and she paid a deposit on the unit (200). I have sent her a rental agreement waiting to be signed and exchanged emails for the terms... etc. for a few days. She wants to back out now after 2 days she paid for the deposit. Should I refund her 200 deposit?

I'd say it depends. Did you stipulate the deposit was non-refundable?
Are you out any additional money at this stage?
Are you still able to rent the unit?

If I've already booked a week (in advance) and offer it up for rent, and someone backs out that quickly, and I still have time to rent it out, I would refund the money (less any processing fees PayPal may have charged me).

Given she backed out that quickly, it's probably a sign you don't want her as a renter, but I don't know all the particulars.

I never book anything (ie: someone wants a different week/etc) without them paying a non-refundable deposit AND getting a signed rental agreement. Once I have both, THEN I'll book (obviously if I cannot get the unit any longer, I will refund their deposit).
 

dioxide45

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Should you be requesting a deposit before a signed contract? I thought the order would be as follows;
  1. Signed contract
  2. Receive deposit
  3. Put reservation in renter's name
 

exyeh

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Thank you for the help!! The deposit is non-refundable states in the agreement but it is not completely signed yet. I still have about 2 months that I can rent it. I want to rent it only because my points are expiring.
 

NiteMaire

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I have worked with a renter and she paid a deposit on the unit (200). I have sent her a rental agreement waiting to be signed and exchanged emails for the terms... etc. for a few days. She wants to back out now after 2 days she paid for the deposit. Should I refund her 200 deposit?
In the end it depends on what is in the contract and/or what you decide is best. I had this happen, except the contract was signed and the deposit was in the mail. Since the prospective renter backed out the day after the contract was signed, I voided and tore the deposit check when it arrived. Per the contract, I could have kept the deposit, but decided otherwise. I ended up not renting the unit, and deposited it instead. No regrets.

ETA: I see you replied as I typed my reply. If I were in your situation, I'd refund the deposit. Although it's interesting you have a deposit without a signed contract.
 
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exyeh

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I requested the agreement be signed and send the deposit on the same date. She sent the money but did not sign the agreement.
 

theo

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I requested the agreement be signed and send the deposit on the same date. She sent the money but did not sign the agreement.

While this prospective renter clearly should not have sent a deposit to you before signing a contract, the fact remains that she did so (and then never subsequently signed a contract at all). In short summary, no executed contract exists, so the content of the rental agreement (including your proposed refund terms) are irrelevant.

I'd refund the deposit without further ado. You cannot enforce the "non-refundable" terms within a contract that was never executed. Prompt 100% refund is both the right and appropriate thing to do --- and you still have 2 months available to find another tenant.
 
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exyeh

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ok, this is fair. I was not going to keep the whole part of 200 dollar. it just I have worked on this for some time and I want other tuggers opinion.
 

dioxide45

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How did the renter pay and what recourse could they have? Paid by Paypal or credit card and can dispute causing more issues and more work? If so, I would just refund and move on.
 
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chapjim

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In the end it depends on what is in the contract and/or what you decide is best. I had this happen, except the contract was signed and the deposit was in the mail. Since the perspective renter backed out the day after the contract was signed, I voided and tore the deposit check when it arrived. Per the contract, I could have kept the deposit, but decided otherwise. I ended up not renting the unit, and deposited it instead. No regrets.

ETA: I see you replied as I typed my reply. If I were in your situation, I'd refund the deposit. Although it's interesting you have a deposit without a signed contract.

I agree. There is no contract. The prospective renter never signed it. (It is an unaccepted offer.) The unsigned rental agreement might as well be Aesop's Fables.

Return the $200 deposit and if you want, subtract any legitimate expenses. (I'd forget the PayPal commission -- not worth the trouble.) Move on. Not every potential deal will work out. That's life -- and business.
 

montygz

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Refund cheerily and move on. It's a blessing your potential customer backed out quickly.
 

exyeh

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Thank you for everybody's chime in! I already told her that I will refund the money and no feelings hurt! I believe she is glad the result!
 

HudsHut

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She will be delighted to receive the refund. Good luck finding the next renter.
 
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