What is the admin fee and can it be refunded?
I applied for this apartment got approved and paid this $150 admin fee. Online it came up as lease holding payment. The apartment I lease for also wanted a deposit and first month, while I was signing the lease it said this was to be paid on or before the move in date. Well I paid for everything early anyways, and everything went through except for the deposit and first month. It was an error made on behalf of my bank. They refunded my card/account but my new move in balance had $75.00 attached to it. I called the apartment and told them the situation and the error the bank made. They told me I still had to pay the $75.00 along with the amount that was agreed upon. I had no problem with this until I was told it had to be paid today or they wouldn t hold my apartment. I m confused now because I was initially told the $150 was suppose to hold it, as well as the fact that the lease states the deposit and first month had to be made ON or before. I would pay it today but because I was under the impression that I could pay this on the move in date, I paid for other things that has to do with this move(I m moving out of state so it s getting expensive). The crazy thing is I have enough to pay for it today but not when they added the $75. Now I m not even sure if I ll have my apartment now. I m not sure why I was told something different than what the lease said. So what exactly is the admin fee? And can it be refunded if they give the apartment away?
- Kt SkycatLv 72 years agoFavorite Answer
Oh dear, the admin fee is just that, a fee, and not a refundable deposit. It is a fee for the landlord or manager to handle all the paperwork involving going through a credit check, finding any evidence of eviction in another state, and finding out if you owe the electric company or water bill or any other overdue utility bills in your state. I'm sorry, but this is not refundable. Technically it is not a fair fee, but real estate can make up their own fees legally. BUT I would verify before you pay anything more whether or not you actually have the apartment for sure. Call this place up and let them know you paid that first fee in good faith and that it was not your fault if the bank screwed up. Find out if this apartment IS yours, because if it is not, why pay anything more? If you have not already signed a contract yet, if they charge you money tell them outright they are stealing or extorting money from you. You applied, and you paid in good faith. Your bank screwed up. Go to your bank and demand a mediator to help you with this. If the bank screws up, you have the right to demand that your bank fix what they screwed up, and that includes negotiating with the apartment person for going back to the first arrangement.Legally they cannot charge you twice, you see, But if the bank screwed it up, the bank is the one to supply the negotiator to fix what they broke. Talk to the bank about this first and good luck.
- R PLv 72 years ago
Fees are non-refundable. More than likely the additional $75 fee was what they charge for a "return check" (or in this case, a returned EFT due to your bank's error).
- Anonymous2 years ago
Read this and see if you can not determine your problem here
" was told $250 of what I paid was the holding fee. It even says so online. But it never went to the security deposit."
It was a holding fee NOT the deposits!
- Anonymous2 years ago
You are probably confusing an admin with an application fee. An application fee is a processing fee. It is not a holding fee. No it is not refundable and it does not hold the unit.
If it was indeed administrative fee that is still not a holding deposit & is still not refundable.
When you make a payment & it does not go through they have the right to charge you what ever fee the bank charges them.
You only get the apartment if you pay all move in fees with the now added bounced payment fee.
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- SlabberdaskenLv 72 years ago
I never heard of an administration fee when renting an apartment. Administration fees are usually non-refundable. A deposit usually holds the apartment. If the landlord refuse to rent to you, he must refund the deposit. If you change your mind, he keeps it.
Where did you find this landlord. Are you sure you are not being scammed?
- Anonymous2 years ago
Here's the problem: the "error" your bank made more than likely looked similar to a bounced check to the apartment complex's bank. They must have been charged a fee by their bank for the failed transaction, which is now being passed on to you in addition to the admin fee. Somewhere in the paperwork there may be a provision that discusses fees that you will be charged in case of failed transactions.
Think of it this way: your non-refundable admin fee was placed in an account at the complex on your behalf to hold the apartment for you. When the transaction failed, they deducted the fees from your account, so it now appears as though you only paid half of the admin fee because your account only has $75 in it, which is why they won't hold the apartment anymore - they're short some of that admin fee now. If you bring it back up to $150 to hold the apartment, and then pay the rent/deposit, you'll be $75 short on that instead and few landlords will accept a partial rent payment on move-in... so at the end of the day you'll have to figure out a way to get them $75 in order to move in.
Since you already explained the situation to the complex and they have declined to waive the fees, you'll have to see if your bank will refund the fee amount but I highly doubt they will. I know this isn't what you wanted to hear but better hear the cold hard truth so you can start figuring out what to do about it than be shocked and out of luck later. If you can't find someone to lend it to you today, you might have to break down and hock some stuff. You can always buy replacements later.
Remember: 'deposits' are refundable, 'fees' are not refundable.
- acermillLv 72 years ago
Chances are that the $75 was added due to the "error your bank made". That being the case, ask your bank to cough up the $75 it costed you. You will not get your administration fee back. That part is charged to you for the costs of processing your application.
- MaxiLv 72 years ago
To pay for administration work and no you will not get this back, it covers back ground, credit check and the admin time to set up/write up the contract...so spent regardless of if you get the place or not...if it is a holding fee then that would go towards the security deposit when you pay it, you lose a holding fee if you choose not to take the property ..sounds like you didn't ask enough questions about fees......... the $75 is a bank charge they had to pay and as it was your fault , you pay, if it was the banks fault then you may be able to argue with your bank that they pay it