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Can A Property Management Company Legally Not Refund A Security Deposit?

I had booked a 1 week rental on a condo in Myrtle Beach, SC. I also purchased the trip cancellation insurance that they offered through another company. I then subsequently found another rental for much cheaper and cancelled the original booking. The insurance company denied my claim, stating I did not have a valid reason. Now the property management company refuses to refund my deposit. Can they do this? Does not seem right since no services have been provided, I cancelled 4 months in advance, and they have subsequently rented out the property.

asked 4 months ago

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mirla

Try to review your lease agreement. Does it stipulate a provision about cancellation and refund? If there is none, then the property management group has the right to forfeit your deposit.

There are cases, however, that deposits can be refunded subject to the management's approval; and yes, it boils down to the validity of your reason. If you tell them bluntly that your reason for cancellation is because you prefer a much cheaper competitor over their area for lease, chances are, the same will not create an impact and will most likely be denied. Reasons which have something to do with health, work/business assignments, or family matters may have done the trick...backed up by a nice, well-written letter requesting for refund.

Normally, payment of Security deposits are made upon signing of a lease agreement. It is usually refunded after full and faithful performance of the lease contract/term. Cancellation and refund usually apply to Reservation Payments.

answered 4 months ago

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