What if the tenant does not appear on the day of move-in? You already took the property off the market, and now you have no tenant. How can you protect yourself?
A common practice is to collect a reservation deposit. Do not confuse this with a security deposit or advance rent. In Georgia, a landlord cannot accept those types of funds until after conducting a move-in inventory and giving the tenant occupancy. But the parties can enter into a separate agreement (or there can be language in the lease to this effect), for the prospect to give a payment as a demonstration of good intent. Such money would be nonrefundable, but usually it can be credited to the first month’s rent upon successful move-in. Under such an arrangement, the landlord has something to cover the damages of a no-show.
It may seem like semantics, as to what you label this payment, but it may make a big difference, if the landlord is forced to go before a judge to defend keeping the money. The law in Georgia is very clear—no inventory, no security deposit.
If you need a property manager in your area, call our number today.
Daniel R. Wilhelm
3 Options Realty, LLC.
678-397-1282
http://www.3OptionsRealty.com
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