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Updated over 3 years ago on . Most recent reply

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Mac Boeve
  • Rental Property Investor
  • Holland, MI
4
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26
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Deposit to Hold vs Signing a Lease Early

Mac Boeve
  • Rental Property Investor
  • Holland, MI
Posted

I have a rental unit available currently with an excellent tenant that wants to move in at the beginning of next month (2-1/2 weeks from now). I'm trying to figure out whether I should have her sign the lease early or go with a deposit to hold. 

She is willing to sign the lease early and pay first months rent plus security deposit in order to hold the unit. Is there any downside doing this instead of a 'deposit to hold'?

  • Mac Boeve
  • Most Popular Reply

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    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    41,499
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    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    ModeratorReplied
    Quote from @Mac Boeve:

    @Sergey A. Petrov a holding deposit is easier to make non-refundable since some states regulate what you can do with a security deposit.

    I require applicant to pay a Holding Deposit and sign a Holding Agreement. It says they agree to sign the lease, set up utilities, pay the rent, and take possession no later than [DATE]. If they fail, they forfeit the Holding Deposit and the rental goes back on the market. If they abide, the Holding Deposit is applied to the security deposit on move-in.

    • Nathan Gesner
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    The DIY Landlord Book
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