Rental Lease Agreement - when does it start?

[Raj K.]

I have a unit I am trying to lease. This unit lease start date is in November and I have interested parties who are interested in renting it in November. I am deciding to finalize one of them  and are using the standard verbiage for the Lease (inlcuding Lease termination - 60 days notice - X times rent early termination fee etc). 

My question was - it is TWO months since the tenants will officially take over the lease. What if they decide after 1 month they dont want this lease and ask to back out? Am i protected by the potential loss of rent due to finding new tenants, spending the time again etc by making them aware that the Lease termination starts as soon as they transfer the Security Deposit and 1st months rent (I will consider this minimum as soon as they sign the lease) but i am concerned about if they ask something like "Please give us our security deposit etc back - we found another place" AFTER signing the Lease but before the Lease actually starts?

This is in NJ FYI.

[Malkia Ra]

Quote from @Kevin Manafi:

Hi @Raj K.,

It's pretty common in these situations (where the lease start date is further out) to require a non-refundable deposit--different than the security deposit--to essentially hold the lease for the tenants. I would also have them sign the lease in advance, even if they are not willing to pay the full security deposit and 1st month's rent that far in advance, so at least you have a fully-executed lease contract and are protected both by the signing deposit and the actual lease.

If they refuse to do either of those things, then it should probably be a red flag for you that they are still shopping around and looking at other places.

Completely agree with Kevin, and I too have a tenant moving in November; the tenant signed the lease this past weekend.

The lease specifically stated a deposit is required to "hold" the rental, and will be converted to the security deposit once the renter takes possession on the lease start date.