A nonrefundable fee is money you pay a landlord that you will not get back, regardless of the condition you leave the unit in. Common examples include move-in fees, administrative fees, redecorating fees, and nonrefundable pet fees. Unlike a deposit, a nonrefundable fee is not held as security and is not returned at move-out.
In short
A nonrefundable fee is money you pay a landlord that you will not get back, regardless of the condition you leave the unit in. Common examples include move-in fees, administrative fees, redecorating fees, and nonrefundable pet fees. Unlike a deposit, a nonrefundable fee is not held as security and is not returned at move-out.
Some states ban or restrict labeling money as nonrefundable, especially when it functions like a deposit, so a fee called 'nonrefundable' may actually be recoverable. Understanding the difference protects you from losing money that legally belongs to you.
Not returned at move-out, unlike a security deposit
Common types include move-in, admin, cleaning, and pet fees
Some states ban or limit nonrefundable fees
A 'nonrefundable deposit' is a contradiction and may be treated as refundable
Fees that function like a deposit may be reclassified by a court
Must usually be clearly disclosed in the lease
In many states yes, as long as they are clearly disclosed in the lease. Some states ban or limit them, and a fee that acts like a deposit may be treated as refundable.
A deposit is held as security and returned at move-out minus legitimate deductions, while a nonrefundable fee is kept by the landlord no matter what.
That phrase is contradictory. In some states, money labeled a deposit must be refundable regardless of what the landlord calls it.
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