Landlords may require a deposit from a renter in order to hold the apartment until the renter can sign the lease. If that happens, the renter should ask for a written agreement that includes the terms of the deposit.

It is best if this agreement is written and signed by both the renter and landlord. An email or text message thread confirming this agreement also works. The agreement should say:

• If the deposit is refundable;
• When the landlord has to return the deposit, and when it doesn't;
• If the landlord can keep the deposit after you sign the lease, and put it towards a security deposit.

If there is no written agreement and the landlord told the tenant that the deposit was non-refundable, the landlord can probably keep it. If the landlord does not say the deposit is non-refundable, then they may have to give the deposit back if the renter decides not to rent the apartment. It will depend on whether the landlord lost money while holding the apartment and the reason that the tenant did not move in.