Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
Hi all!
I am new to this landlord thing. I am requesting the tenant to pay the first month rent, last month rent, and the security deposit. My question is do I request the tenant to pay the fees first before I send her the lease with my signature or vice versa? please advise.
I wouldn't send out a lease with a signature. They could take that lease and sign it and show up and get a locksmith and move in. I've had people try all sorts of stunts over the years. I had this one potential tenant who went through a complicated process required by the HOA. After she was approved she showed up to move in. I had not provided her with a signed copy of the lease at that point. I take cash only for the first month and security deposit. Or a check 21 days in advance. She wanted the keys but said her mother was paying so I contacted the mother. The mother stated that since I had advertised on Craigslist there was some doubt as to whether I owned the unit or not. I asked her why she hadn't checked the property records but she stated that wasn't enough. She wanted me to let her daughter move in as a sign of good faith and I simply hung up at that point because she was obviously a scammer. The daughter then called me back and started screaming about me hanging up on her mother and I hung up on her also. Two weeks later I rented it to someone else who ended up staying for 3 years. Always get the funds up front. If they have a signing issue they can sign and overnight the docs at their expense. Without secured funds and especially now, you're screwed. Don't take a check without proper clearance times.
Rental Property Investor · St Augustine, FL · Member since 2019 · 264 posts · 279 votes
5y
@Vinh Nguyen sign the lease get the money give them the key or combination. Sometimes it hard to coordinate all three but with electronic transfer of money thy can happen overnight from anywhere in the world with internet access. As long as the money is in my bank account the rest is secondary. 🙂
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
5y
@Todd Pultz Not to belabor the point, but Money Orders and cashiers checks can be counterfeited... which would take time to appear in your bank as a bounce.... the point is ALL types of payment (except cash which has its own issues) are insecure and open to fraud. The best tool we have is screening..... Because if a tenant wants to not pay rent (or cancel payments) they can - in any non cash payment method there is.....
Ellenwood, GA · Member since 2016 · 267 posts · 70 votes
5y
@Vinh Nguyen
Ok one point I have not seen addressed is to be particularly careful about persons that are out of state and wish to rent your property. Please be careful not to be a victim of a scam where they will send you the money or more than you requested then come up with some story about not being able to move in again then request that you send back a portion of the money and keep the rest for your troubles. If this happens DON'T SEND THEM ANY MONEY.
With that said.
You can use Adobe or Docusign or some other esign software to send them the lease so they can review, you can clarify anthing that needs be then they sign. You have them send all the required funds and once you've verified its authentic and clears your account you sign and return the executed contract with both signatories.
Arrangements for handing over of keys are also made. Boom they move in.... At least this is how I do it.
Rental Property Investor · Orlando, FL · Member since 2015 · 353 posts · 269 votes
5y
@Vinh Nguyen if they are not moving in the same day as lease signing, then get the signed lease and “deposit to hold” agreement signed and collect their deposit funds. In order to move in and get the keys, they then need to give you first month rent. Upon move in, their “deposit to hold” funds becomes their security deposit.
If signing the lease on move in day, just get deposit and first month at the same time before you hand them the keys.
@Vinh Nguyen yes! You can still do this all online, if you don't want to accept money online, then money order or check, that is cleared, then give them keys when they get here. I know in Oregon, you may start the lease before they get here, so you don't hold it for free for anyone.
Property Manager · Lansing, MI · Member since 2015 · 170 posts · 59 votes
5y
@Vinh Nguyen we do a hold agreement that states the amount of time that the initial hold amount will hold the property. After that period of time the property and the hold amount can be forfeited. In that agreement it states any remaining amount they need to pay for the deposit, what will be the first months payment, and what the second month will be. If you have any additional questions please let me know.
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
5y
We only execute leases in person, no exceptions. Our process is to meet at the property, do the walk through inspection which they sign. They pay the move in fees of first and last month's rent, security deposit and animal fees if applicable. Then everyone signs the lease and they get a copy. They take the lease and use it to turn on all the applicable utilities in their name. When they show proof of this they get keys. All the move in fees are cash. No exceptions. Not a cashier's check, not an ACH, cash in person only. It really removes almost all risk of fraud. If someone doesn't like our procedures, they can choose a different property.