Application deposits
Application Deposits, also known as Holding Deposits, allow properties to collect a fixed deposit amount as soon as an application is submitted to hold a unit. Later, the collected amount is applied to the total security deposit amount required.
Collecting the deposit
When enabled, the property configures a fixed deposit amount (e.g. $200) to be requested as soon as the application is submitted. Then, when the applicant reaches the point when Whale would request the security deposit, Whale calculated the difference owed and requests the additional amount to meet their full security deposit requirement.
Example:
Property requires a Security Deposit of $1,000. If the Application Deposit is $200, Whale will request an additional $800 once the application is approved or the lease is signed.
If the renter is rejected, Whale automatically returns their application deposit. If their application is canceled, the property must finalize the move-out statement (also known as deposit accounting) so Whale knows how much, if any, of the application deposit is being claimed by the property.
Locking and returning the deposit
As soon as an application deposit is received, it is locked until it is released by the property. There are a few ways the application deposit can be released:
- For denied applicants: Whale automatically returns their full deposit as soon as they are denied.
- For approved applicants who cancel their lease: Whale waits for the property to complete the financial move-out before returning the deposit. This allows the property to choose if they'll claim any damages for the canceled lease.
- For approved applicants who move-in: The application deposit, along with any additional funds required for their security deposit, is locked until the property completes the financial move-out after the tenant vacates the unit.