Topic: Hold Fees

Anyone know where I can find what is the max allowed to charge for a Hold Fee. Property Owner wants to hold it off market for over a month. Property is located in North Carolina. What is the max NON REFUNDABLE Hold Fee he can charge. Once they move in, it will be applied either to their rent or their security.

Just a question... I have always used Hold Fees when someone cannot make up their mind and need a little bit of time, so I offer $100 Hold Fee to take the unit "off the market" for no longer than 24-hours. After that they must either put their security deposit with application or lose their money. If they apply and are approved, the $100 goes toward their first Monty's rent. What is advantage of tying up a unit for 30- days? Or, is the Owner thinking he can charge what essentially would be a month of rent as the Hold Fee? This is interesting!

No owner knows he can not charge exorbitant fee. He is willing to take off the market for the 30 days because the credit of the applicant is very good. He does, however; not want to lose money so wants a Hold Fee which will then get applied toward rent or Security. Before signing a lease it is a Hold Fee.

Charging a fee to hold an apartment is illegal in my state. Allowable fees are limited to specific situations, such as tampering with a smoke alarm, late rent, bounced check, etc.

From www.ncleg.net/gascripts/statutes/StatutesTOC.pl?Chapter=0042
Here are the permissible fees for North Carolina:

§ 42-46. Authorized fees.
(a) In all residential rental agreements in which a definite time for the payment of the rent is fixed, the parties may agree to a late fee not inconsistent with the provisions of this subsection, to be chargeable only if any rental payment is five days or more late. If the rent:
(1) Is due in monthly installments, a landlord may charge a late fee not to exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater.
(2) Is due in weekly installments, a landlord may charge a late fee not to exceed four dollars ($4.00) or five percent (5%) of the weekly rent, whichever is greater.
(3) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and applicable to leases entered into on or after that date.
(b) A late fee under subsection (a) of this section may be imposed only one time for each late rental payment. A late fee for a specific late rental payment may not be deducted from a subsequent rental payment so as to cause the subsequent rental payment to be in default.
(c) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and applicable to leases entered into on or after that date.
(d) A lessor shall not charge a late fee to a lessee pursuant to subsection (a) of this section because of the lessee's failure to pay for water or sewer services provided pursuant to G.S. 62-110(g).
(e) Complaint-Filing Fee. - Pursuant to a written lease, a landlord may charge a complaint-filing fee not to exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater, only if the tenant was in default of the lease, the landlord filed and served a complaint for summary ejectment and/or money owed, the tenant cured the default or claim, and the landlord dismissed the complaint prior to judgment. The landlord can include this fee in the amount required to cure the default.
(f) Court-Appearance Fee. - Pursuant to a written lease, a landlord may charge a court-appearance fee in an amount equal to ten percent (10%) of the monthly rent only if the tenant was in default of the lease; the landlord filed, served, and prosecuted successfully a complaint for summary ejectment and/or monies owed in the small claims court; and neither party appealed the judgment of the magistrate.
(g) Second Trial Fee. - Pursuant to a written lease, a landlord may charge a second trial fee for a new trial following an appeal from the judgment of a magistrate. To qualify for the fee, the landlord must prove that the tenant was in default of the lease and the landlord prevailed. The landlord's fee may not exceed twelve percent (12%) of the monthly rent in the lease.
(h) Limitations on Charging and Collection of Fees.
(1) A landlord who claims fees under subsections (e) through (g) of this section is entitled to charge and retain only one of the above fees for the landlord's complaint for summary ejectment and/or money owed.
(2) A landlord who earns a fee under subsections (e) through (g) of this section may not deduct payment of that fee from a tenant's subsequent rent payment or declare a failure to pay the fee as a default of the lease for a subsequent summary ejectment action.
(3) It is contrary to public policy for a landlord to put in a lease or claim any fee for filing a complaint for summary ejectment and/or money owed other than the ones expressly authorized by subsections (e) through (g) of this section, and a reasonable attorney's fee as allowed by law.
(4) Any provision of a residential rental agreement contrary to the provisions of this section is against the public policy of this State and therefore void and unenforceable.
(5) If the rent is subsidized by the United States Department of Housing and Urban Development, by the United States Department of Agriculture, by a State agency, by a public housing authority, or by a local government, any fee charged pursuant to this section shall be calculated on the tenant's share of the contract rent only, and the rent subsidy shall not be included. (1987, c. 530, s. 1; 2001-502, s. 4; 2003-370, s. 1; 2004-143, s. 5; 2009-279, s. 4.)

Are you saying that no fee can be charged before someone signs a lease in your state, Rose? Would that include an Administration Fee and/or Application Fee? It appears that what you quote here precludes the charging of any fee unless it is tied to rent of a leaseholder.

In Oregon, we can charge a small application fee, but can not charge administration, holding, move in, pet fees, etc. The law that I quoted was for North Carolina, since that where she was asking about.

Thanks for the help guys. Maybe I am not reading correctly but I don't see anything that actually pertains to a fee to Hold or Take off the market?

Sherri,
You aren't seeing anything about it in the quoted ordinance because I do not think it exists. What this language relates to is once a lease is signed. You should just call your company's attorney and ask his/her advice.
\
Mindy

We will hold an apartment up to 2 weeks with a security deposit. If the potential resident changes their mind, we charge them a daily rental rate (based on what the rent will be), from the time of placing the deposit until the time they change their mind. This is the charge for taking the apartment off of the market.

Most places I have been will charge a fee to process an application (either as an entire household, or as individual applicants over 18); and collect a reservation deposit to be deducted from move in costs (usually between $100-$200) to reserve an apartment for up to 2 weeks from date of application (or the unit ready date). If the applicant is declined, or withdraws the application; this deposit is returned to them. In CA, a deposit is refundable if the application is withdrawn by the applicant within 72 hours of application submission.


I would NEVER EVER hold a unit for more than 15 days unless the applicant is military and transferring into the area from outside CONUS.

Hello,
Can big corporations hold $100 besides the $45 application fee while they process an application?
and can they hold the $100 for 21 days after one decided to not take the unit?
Please advise,
Thank you,