PRE-LEASE DEPOSIT INFORMATION

1. Once a completed application has been submitted to Landlord (completed application includes submission of fee for background check) Landlord agrees to remove this unit from the market. Applicant agrees and understands that Landlord’s agreement to remove the unit from rent availability inventory will cause Landlord to incur costs and damages, including without limitation, lost rent. Applicant agrees that the forfeiture of the Pre-Lease Deposit/Holding Fee in such instance is not a penalty, but represents a fair and reasonable estimate of the damages Landlord will incur as a result of taking the unit off the market for Applicant.   

2. Applicant may request to rescind their application and cancel this agreement within three business days after submitting a completed application, and the Pre-Lease Deposit/Holding Fee will be returned. After the three-day period, the fee will be kept to offset the Landlord’s damages (exceptions below).

3. If Applicant is not approved for occupancy, the fee will be refunded. However, if Applicant’s denial was due to Applicant’s failure to comply with any additional requests from Landlord for information required to complete/process their application, then the Pre-Lease Deposit/Holding Fee will be kept to offset Landlord’s damages.

4. If Applicant is approved for occupancy and Applicant signs a lease agreement, the fee will be applied towards the Security Deposit. Applicant acknowledges and understands that the return of the security deposit will be governed by Minn. Stat. § 504B.178. Applicant is on notice that if Applicant abandons the premises by failing to move-in to the unit, the Security Deposit may be used to remedy the Applicant’s defaults in the payment of rent or of other funds due to Landlord pursuant to the lease agreement.

5. If Applicant is approved or conditionally approved for residency and fails to sign a lease within three business days, the offer for residency will expire and the fee will be kept to offset the Landlord’s damages.

6. If the Pre-Lease Deposit/Holding Fee is to be returned to Applicant under this agreement, the Owner is required to return it within seven days. "Return" means postmarked within seven days except that upon the prospective tenant's request, a landlord may destroy the payment or hold it for retrieval by the tenant instead of returning it by mail.