Prospective tenant has not signed electric lease, can I move on?

Question

I told a prospective tenant that we would love to have her move in. I prepared the lease and she has not signed it. It’s been over 24 hours and the unit has gotten 6 more inquiries since I submitted the lease to her via Dotloop.

At what point in time would it be appropriate for me to retract the lease and my tenant offering?

Am I at any risk of breaking any tenant protection laws or subjecting myself to a lawsuit if I retract my lease?

Joe Splitrock · Answer

The lease is not final until both parties sign and monetary exchange is made. Have they paid the deposit yet? If money was paid, that is probably enough to be binding.

I would recommend contacting them and explaining the situation. Give them a deadline to sign the lease and pay the deposit. You should actually do that when you invite them to sign the lease. "Please sign within 24 hours and pay the deposit to secure the property. Failure to do so could release the property to another applicant."

We actually have people sign a deposit to hold prior to the lease. We tell them they have 24 hours to sign the deposit to hold and pay the deposit, which holds the property. The deposit to hold states that the deposit is forfeited if they fail to sign the lease or take occupancy. Then when they sign the lease, I require first months rent. I don't sign the lease until I have deposit and first months rent in secure funds.

As I said, give them a deadline to sign as a courtesy. I would actually call them on the phone and not just text. They can explain what is going on. It is pretty typical in my experience for people to take a couple days to sign a lease, which I think is reasonable.

Nathan Gesner · Answer

You're not obligated until they've signed.

This is a good lesson. When you offer them the rental, your offer should include a deadline for signing and paying the deposit. If they fail to do so, you can offer it to the next approved applicant. Don't leave deadlines wide open or you'll constantly be chasing after them.

After they sign and pay the deposit, they have a clear deadline for paying rent, utilities, etc. Failure to do so results in me marketing to another renter.