What Lost Rental Damages Can Be Charged if You Change Your Mind About Renting

My question involves landlord-tenant law in the State of: California

I recently applied to an apartment - Gave them a holding deposit, and signed their contract. Two weeks later, while sitting idly, I found a much better apartment and cancelled the other one. Two weeks later I get a letter in the mail for 700 dollars for "lost rental damages" every day the apartment was off the market. Basically the day I signed the contract is when they started accumulating charges for "damages." The apartment was not available to move in until a week after I cancelled it because someone was still living in it. My question is, is it legal for them to do this? I just can't see how I caused any damage when the apartment was not available to move in yet, and apartments in that area get taken very quickly. According to the landlady, I took the last one.

So because I cancelled it, they kept my 250 dollar holding deposit in addition to the 700 dollars for the "lost rental damages."

Are they in the right to receive 700 dollars?

By "signed their contract", do you mean that you signed the lease?

This is what I signed. A holding deposit agreement. You can find it online for the state of california

https://caanet.org/app/uploads/2015/..._agreement.pdf

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Applicant’s Failure to Enter into Rental/Lease Agreement. If Applicant, after approval, chooses not to enter into the Rental/Lease Agreement, Owner/Agent may deduct from the holding deposit "lost rental damages" to cover the lost opportunity to rent the premises.

Owner/Agent and Applicant agree that "lost rental damages" will be 1/30th of the monthly rent specified above for each day the premises was taken off market (beginning on [ ] [DATE] the date of this agreement or [ ] [DATE] ) and ending on the date specified in the "Acceptance of Application" section above.

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Did you agree that the lost rental damages would start on the date of the agreement? If not, what alternative date was specified?

Where it says "the date of this agreement" there is a check mark. So I guess it would be the same day I signed the agreement

It this even legal that I would have to pay this? It seems very unreasonable to be the law. I can imagine a judge excusing it if taken to court.

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Quoting markwest015

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It this even legal that I would have to pay this? It seems very unreasonable to be the law. I can imagine a judge excusing it if taken to court.

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You would be wrong.

The "law" expects people to know what they are doing when they sign contracts. The "law" expects people to carefully read and understand the contracts they are signing. The "law" expects people to be damned sure that they want something before they commit to it by signing a contract and handing over their money. The "law" expects people to suffer the consequences of breaching contracts. Especially when a contract is clear and unambiguous and as easy to read and understand as your holding deposit contract.

You signed an agreement that says you pay for each day that the unit was "off the market." That is not the same as saying each day that the unit "remained unrented."

Like it or not, your signature has obligated you to pay that daily rate and I do believe that the contract is enforceable in court.

So even if there are no actual damages I still have to pay because I signed it? That's like being billed for breathing the air because I signed a paper. I don't see how this is legal.

Not because you signed it, but because WHEN you signed it, you agreed to the terms set out in the contract. If you didn't understand, or didn't agree, you should have questioned, asked for a modification, or walked away. If you had signed an agreement to pay for breathing the air, you would be obligated to live up to that contract, or pay the charges that you acknowledged you would owe.

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Quoting markwest015

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So even if there are no actual damages I still have to pay because I signed it? I don't see how this is legal.

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That's because you know nothing about contract law.

Read the following article about liquidated damages to get an idea of why this is legal (and appropriate):

https://www.expertlaw.com/library/bu...damages-clause

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Quoting markwest015

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That's like being billed for breathing the air because I signed a paper.

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Be damned sure that you want the air before you sign a contract to pay for it.

The late charge example is reasonable and appropriate. This is simple thievery.