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I am now seeing a fee for handling the security deposit. Any thoughts about the legitimately of that fee?
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<div dir="ltr">Sent by Leonard P Cabral </div>
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<blockquote type="cite">On Oct 25, 2019, at 10:59 AM, Harry Heist <harry@evict.com> wrote:<br>
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<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">It seems like each day property managers are coming up with fees that I believe will eventually cause a problem and be class action material.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">They are spreading as these managers are on all of these Facebook groups, someone says they are doing it and then everyone thinks it is OK.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">The latest one I have been seeing is a “Risk Mitigation Fee”.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">This is a nonrefundable fee that the higher risk tenant (bad credit, bankruptcy, eviction etc) is being asked to pay as part of being approved.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">Often this “fee” is being kept by the property manager, split with the owner or given to the owner.  More often than not, kept by the property manager.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">Does anyone have any info on the legality of this?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">In the money lending world, creditors are free to charge a higher interest rate to a higher risk person but this now????<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">Harry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Arial","sans-serif";color:#1F497D">LAW OFFICES OF
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HEIST, WEISSE & WOLK P.A.<br>
PH: 1 800 253 8428<br>
FAX: 1 800 367 9038<br>
"Serving the Property Management Professional"<br>
Website:  </span></b><span style="color:#1F497D"><a href="http://www.evict.com/"><b><span style="font-family:"Arial","sans-serif"">www.evict.com</span></b></a></span><b><span style="font-family:"Arial","sans-serif";color:#1F497D">
<br>
Email: </span></b><span style="color:#1F497D"><a href="mailto:harry@evict.com"><b><span style="font-family:"Arial","sans-serif"">harry@evict.com</span></b></a></span><b><span style="font-family:"Arial","sans-serif";color:#1F497D"><o:p></o:p></span></b></p>
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