I have taken a deposit on my rental, but the applicants changed their mind. Do I have to refund the deposit?

First off, understand that there is a difference between a 'deposit' and a 'holding fee'. A 'deposit' is generally used to describe funds received after an applicant has been approved to reserve a unit until their move date. If you have accepted a deposit and the Tenant changes their mind, you must provide the applicant with an itemization of any deductions (advertising, lost rent) within 30 days of receipt of funds.

A 'holding fee' typically describes funds held to reserve a unit until they are approved and have met all requirements necessary to rent the property. This fee can range from $200-$500 depending on the location and monthly rent and is usually forfeited in the event the applicant changes their mind (but returned in the event you deny their application).

Make sure that the applicant understands whether they are paying a fee or placing a deposit.