Lease Reservation Fee Clause Samples

The Lease Reservation Fee clause establishes the requirement for a prospective tenant to pay a fee to reserve a rental property before the lease is formally executed. Typically, this fee is paid to hold the property for a specified period, during which the landlord agrees not to lease it to another party. The clause may outline whether the fee is refundable or can be applied toward the security deposit or first month's rent. Its core function is to secure the tenant's interest in the property while providing the landlord with assurance of the tenant's commitment, thereby reducing the risk of vacancy or last-minute cancellations.