Is this lease binding?

I had a friend show my house for rent, and after receiving an application and speaking with someone on the phone, I agreed to rent to them. I prepared a lease and emailed it. The renter printed it, signed, and sent back with 2 checks, one for deposit and the other for 1st month's rent (post-dated to 8/1). I deposited the security/deposit check on 7/25. Well, since then, the tenant-to-be did a walkthrough with my friend, and it didn't go well at all. The renter was nitpicking out of control; when he left, he said "F U" (literally) to my friend; and when I spoke to him after the walkthrough, he sounded very demanding for small things plus wants to paint the house (which we had not discussed and I made point blank clear was not to be done). All in all, I'm not liking this person as a renter any more. He referenced having lined up movers for the 8/1 move-in date.

My question is this. I did not sign and return the lease to this person. Can I call them now, 7/28, and say I'm not going to lease to them? Then, return their deposit amount with interest, reimburse them for the mailing cost, and destroy (or return) their 1st month's rent check? This person only showed me the good side originally, but now I'm seeing 1 year (or more) of constant problems down the road, and I'd just as soon not rent to this person and keep looking for a better tenant.

Alex

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

Moderator Pro

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Jul 28 '10, 04:12 AM

Have you tried calling the prospective tenant and saying "The property is offered in as-is condition. You saw it before you applied to lease it and signed the application. If the property is unsatisfactory in this condition, I will send back your check and deposit."

Yet another reason to go only with month-to-month leases.

Some of this could be solved if you were more hands on with your property. You, not your friend, should be the one showing the property. The lease should be signed in person with you and the tenant there together. Walk through the property, together, first and if there's a problem, don't sign the lease.

If you really cannot manage the property yourself, bite the bullet and hire an actual property manager.

Jon Holdman, Flying Phoenix LLC

Bill Gulley

Real Estate Investor · Springfield, Missouri

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Jul 28 '10, 04:20 AM

Hi, Jon is right! But if the lease has not been executed you don't have a lease agreement. If you cash the checks, you may have rented it. Having a moving date is not taking possession, IMO, but you accepting payments may be with an oral agreement/understanding leaving you in a month to month status. Better just be straight with the tenant and see what you can work out, or seek advice locally. Local custom will dictate how this is treated. As always, ask your attorney. Good luck, Bill

Michael S.

Residential Real Estate Agent · Camden, New Jersey

126 posts
4 awards
50 influence

Jul 28 '10, 02:51 PM

if sombody complains or wines, it's not a good sign! givem' their money back immediately plus $20.

only one time i rented to a complainer, but her husband said dont worry about her, he had a 740 credit score