I am starting out rental business for the first time by using my residential property.
What should I do if the qualified renter will not available to move in until next month? Should I extend the offer? Do I have to secure the deal with the Deposit-to-Hold? Any advises would be appreciated.
Good Evening Kevin!
You really only have two options. If you have had trouble finding a qualified renters for the space then you can hold it for up to 30 days for this individual given that they pay a reservation fee. I would have a document stating that at move in the payment would then count as the tenants security deposit and they will be refunded that amount granted that the space if left in a decent condition after they move out.
How much you ask for is up to you but in NC $300 to 1 month of rent is common. You cannot request more than 2 months of rent. We commonly used this practice in lease up properties when future residents are holding apartments that are not built yet so we know they are serious about making a 12 month commitment. Much like earnest money in residential sales, landlords and property managers want to know how their future residents are serious.
If you can easily find another qualified renter then you can have a 1 to 2 week hold policy across the board. Just make sure you are consistent with that policy for fair housing reasons.
@Kelvin Nguyen I typically go ahead and write the lease and collect the security deposit right away. Then, they pay rent before they move in. I would fully expect anyone looking right now is not prepared to move for a month, so that seems totally reasonable to me.
Thank you so much for your advises. There were so many people interested in renting my property but qualified tenants were so limit. I met the qualified renter and he agreed to reserve the place with a non refundable deposit to hold fee equal to one month rent. I am very happy. When he moves in, the deposit to hold fee will become the security deposit fee.
Are you saying they can't move in until Feb 1.... as in 2 weeks?
If so, i'd accept them if they meet your criteria.