BiggerPockets

I'm asking $995 first month's rent, + $795 security deposit, so total about $1800 to move in. I don't know if most tenants have this much cash available at once, and if I'm being reasonable (I did already make the deposit a bit less than the rent as an enticement, since I'm also charging an app fee for screening costs).

The reason I'm asking is I just received a call from an interested party, but when I told her I charge $40 per adult for app fee she hung up on me. :roll:

it doesn't sound unreasonable (assuming the rent is inlign with your area). they probably hung up on you because they knew they wouldnt pass/qualify.

move on to the next. whatever you do, don't set the policies and then become lax on them. u WILL get walked all over.

Originally posted by Jon Holdman

That may well indicate she knows she won't pass a screening. I do get complaints about the screening fee sometime, but charge it anyway.

I also have problems getting the full deposit plus first months rent. I've been lucky this time around, and just signed a new lease just tonight (yea!!!) where the new tenant had both (double yea!) I did once agree to take half up front and half a month later. A month later, still no second half, so we increased the rent. I did end up regretting that. I too would be curious how other deal with this.

i think that spreading it over a few (say 3 months) would be sufficient. the last thing u would want to do is allow it to go longer than 3 or 4 because its only 12 months. you start going into a large % of the whole lease and more and more things can happen.

to attract tenants, i ran an ad in the paper with a "new year's security deposit special" in the beginning of the year...i lowered the deposit all the way down to 150, but jacked the rent up an extra 50 bucks per month (the tenants of course did not know that though)...instead of 400 a month, they will pay 450/month for a year...people that live in these 400/month rentals are usually not great with money...thus, do not have the cash upfront to move in (esp. after the holidays)..i gave them a cheaper entrance, and they'll pay the extra 50 per month, which i will set aside as a deposit, just in case...the only downside i can see is if they trash the place in a few months before i can get an adequate aggregate deposit

a neighboring apartment complex offers 2 months free rent, no deposit, no background check....HOW THE HELL DO YOU COMPETE WITH THAT!?!?

The neighboring apartment complex is losing money and will likely go broke! They are desperate for tenants. Unless you want to go broke too, don't follow their lead!

I would NEVER allow a tenant to spread anything over time. I require the ENTIRE rent and the ENTIRE security deposit up front and IN CASH! If the tenant can't afford that, they aren't going to pay you in the future and you don't want them for a tenant.

Originally posted by MikeOH

a neighboring apartment complex offers 2 months free rent, no deposit, no background check....HOW THE HELL DO YOU COMPETE WITH THAT!?!?

"The neighboring apartment complex is losing money and will likely go broke! They are desperate for tenants. Unless you want to go broke too, don't follow their lead!

I would NEVER allow a tenant to spread anything over time. I require the ENTIRE rent and the ENTIRE security deposit up front and IN CASH! If the tenant can't afford that, they aren't going to pay you in the future and you don't want them for a tenant."

I agree with Mike. You know they are attracting the worst kind of tenants advertising no credit check. Also, I would never want to compete on price. There is always someone out there willing to lose money. Determine to offer a better home with better service.

From my experience in Columbia, it greatly depends on the neighborhood you are trying to lease in.

I was looking to get a lease sold back in November and actually had a few applicants who said they couldn't afford the $330 upfront for the rent, plus $330 for the deposit (total $660)

So yes, there will be those types of tenants everywhere. (Although you seem like you have the problem more, asking for more than I)

Best of luck, just network yourself as much as you can. I ended up filling the lease by asking friends-of-friends.

I have broken up security deposits into 2-3 month payments for tenants who are on social security disability.

The ONLY thing wrong with most of the people I see on social security disability is that they are LAZY!

At some point, we as landlords have to be flexible--I'm not suggesting get taken advantage of. But, if you can smell a good tenant, why let them go pay someone else?? I have a friend who makes tenants pay first month's rent, last month's rent, and a deposit equal to 1 month's rent. That's 3 grand. His place has sat vacant for 4 months now and his rent is fair to the market--that's 4 month's rent he's missed out on!!! How much is this deposit worth to you?? You may have to wait for the right tenant who will have all that cash upfront. Is it worth it if you have to keep your place vacant for 1 month?? what about 2 months??? what about 6 months??? We have a business, and a cost of that business is that tenants will sometimes destroy our rentals. If a tenant goes through and destroys a rental, the 1000 deposit will only help some--but will not cover everything always. If you can work with your tenants, and you personally can budget each month by putting aside some extra rent in a "reserve" account, I think you will have a better shot at being prepared. This would be better IMO than having the place sit vacant. Also, as I said earlier, I hide some deposit fees in my rent to help out tenants who do not have the money right now. I lower the deposit, but raise the rents a little and set aside that extra 50 bucks each month into my reserve account. Let's say a tenant moves out after the lease is up and they've paid a 450 deposit. Nomatter what, they usually expect the whole deposit back...they dont see damage like we do!! Now, if they only paid a 150 deposit, and you hid the rest of the deposit in the rent fees, by slightly raising the rents, they are only going to fight you for 150 when they move out--the rest is yours bc it was rent paid, that you saved as a deposit. And as far as a 40 dollar per adult app..that is steep...that comes out to 80 dollars per couple. I personally would never pay that. just my .02 though-Bryan

I've noticed that most landlords on Craigslist are asking for the equivalent of a full month's rent for the deposit, so I dropped mine to $795, $200 less than the rent I'm asking.