ComplaintsforSKB Management, Inc.

• Initial Complaint

  10/18/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  On 9/21/2021 I paid $400 to Birchwood Park (SKB Management) because they said I needed to pay my deposit if they were going to hold an apartment for that was becoming available in December. I have since found another place to move to. The application fee was non-refundable ($25) but the Deposit is always refundable upon moving out. In which case, I never even signed the lease yet. And they failed to provide anything in writing or verbally that said the deposit was non-refundable. So now they are saying "Sorry charlie, too bad, so sad"... This doesn't make sense. Please help! My co-worker, Amanda, told me to file this complaint because my co-worker said it's not right. They have to refund that $400 deposit. They have had more than one-months notice as of today to rent the apartment that isn't even available to rent yet until mid-December. Thank you for your time in this matter.

  

  Business response

  10/22/2021

  Dear BBB of Wisconsin,
  In response to complaint ******** ********** **** ******* *********
  Mr. ******** ******* *** ** ********* * ********* **** ********** on 9/20/2021. He was approved
  for the apartment and was told he needed to put down a holding deposit which would turn into his
  security deposit once he moved in. He was then told, like every other applicant, that if he cancels the
  apartment he would forfeit the holding deposit due to taking it off the market and not being rentable.
  He cancelled his apartment on 10/19/2021 and so therefore forfeited his holding deposit.

  Customer response

  10/25/2021

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********* and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  [Please type your response here.]

  The information in the response is inaccurate.  I was only aware of the $25 non-refundable application fee.  That is standard on any apartment application.  The next day I received a phone call from ****** saying my application was approved and that the apartment I was applying for wouldn't be available until February.  I said that was fine.  But then ****** said in order to hold it for me, I would need to come down to put a $400 deposit which would be my security deposit once I sign the lease.

  That same day, I went down and paid $400 in money-order.  The next day, I realized I should have something in writing from her but she said no.  They do not give receipts for deposits to hold an apartment.  She said the "money order stub" was my receipt itself.  I realized this wasn't a good idea since I didn't have anything in writing saying that it was refundable.  And it was never communicated to me in writting or verbally that the deposit was non-refundable if I didn't sign the lease.

  No lease was signed, and everyone, literally everyone I have spoken to about this has declared that this process is completely incorrect and that my deposit is 100% refundable especially in light of the fact that no lease was ever signed.
  

  The SKB Management website has since updated their application process information online.  Their website (*which has since changed since my complaint has been filed) has quickly been updated from no longer requiring a $25 non-refundable fee to now $100 "minimum" Earnest Deposit.  It is apparent that they are trying to cover their tracks to make it appear that the $400 deposit they took from me was non-refundable or that it was "earnest money" which it was not.  It was simply to hold onto until I decided to sign the lease, which they said I wouldn't need to do until it was closer to the time the apartment became available.

  Furthermore, if they did this with me, then they likely have done this to other people and have probably kept a large number of people's deposits who were "holding" apartments but then decided to move elsewhere and did not sign a lease.  This would not only constitute unethical practices but could result in civil or even criminal penalties should this information come to light.

  I am willing to walk away from this with my deposit refunded 100% but if not, I would be forced to pursue legal action.  That is my offer to settle this matter.

   

  Enclosed: Receipt from ******* ************ to my personal checking account showing the $25 fee on 9/21/2021 (SKB Management) as well as the payment for my $400 Money Order at ******* (9/21/2021).

  Also enclosed, the updated RECENTLY CHANGED application process on the SKB website.  They changed the $25 non-refundable application fee to a "Earnest Payment" of $100 (Minimum).

  
  ******** ******* ********

  

  Business response

  11/12/2021

  The $25 application fee is a non-refundable fee for running background checks. The holding fee is a fee we charge for taking the unit off the market. We are not going to change our policies and procedures for one person.

  Customer response

  11/16/2021

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  [Please type your response here.]

  I  am copying the O***** ***** ********* on this message.  The reason I am upset is because the SKB management office seems to provide information which contradicts the information I was told.  Also, there is nothing stating that my deposit was being used to take any property "off the market."  Most likely by the filing of my complaint they already had another pile of applications who would gladly rent the apartment.  Additionally, I never signed anything.  It is common knowledge that Deposits are REFUNDABLE (not what SKB is claiming that my deposit is now Non-Refundable).  Especially in light of the fact that I gave them ample notice (almost two months notice) that I would not be signing the lease.  It was at that time, they very casually brushed me off, saying "no can do buddy, sorry but we're gonna keep your $400).  Which to me is very unprofessional.  They did not provide me anything in writing, and when I requested a receipt for the $400 deposit, they said "No, your receipt is the stub from your money order."  Again, that is very unprofessional.

  I'm filing this grievance because everyone I have spoken to about this (and it is many people by this time) have all told me that legally they cannot keep that $400 deposit.  There is nothing in writing stating that they are allowed to retain my deposit, which is supposed to be refundable.  Thank you for your time and consideration in this matter.  I will not be responding to any more of their messages. 

  If you need to, you may direct SKB Management to the ****** ****** ******* ****** ******* Legal Resources Center.  The Legal Resource Center is located at **** ** ***** **** ****** ** ***** ********* ****** ***** ** ******** ******* ********

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩