A good faith deposit is sometimes required by landlords in New York. These deposits are paid to the landlord before the application has been processed and approved and proves that the applicant is serious about wanting to rent the apartment.
Good faith deposits are reimbursed to the applicant if the landlord decides to rent the apartment to someone else. If the application is approved, the good faith deposit is put towards first month’s rent or is used as a security deposit depending on the landlord’s policy.
Apartments in New York City are rented extremely quickly, therefore it is good to act fast when you find an apartment you are interested in. When applying for an apartment, submitting a good faith deposit with your application means that the property is taken off the market while your application is processed and ensures that the apartment will not be snatched up from under you.
Submitting a good faith deposit therefore has its benefits; however you should be sure about wanting to rent the property as you can lose the deposit if you decide to back out once you have applied. If you are hesitant about a couple of apartments it may be best not to put down a good faith deposit on one of them, as if you decide to move forward with another losing your deposit can put a dent in your plans.