Rental Lease Agreement-How to protect from Renters pulling out?

Question

Posted this earlier in the wrong forum. Reposting in the correct thread.

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 anytime between now prior to officially taking over the unit that 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)?  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 - that I wont have an option but to give their money back and start the process anew. Can the Lease Termination agreement have a clause that says that their deposits can be forfeited BEFORE they actually move in?

This is in NJ FYI.

Nathan Gesner · Answer

Walk away.

My written policy is that I won't hold a property vacant for more than one week. I may deviate from that for the right tenant, but one week is my default response and I definitely won't hold it for more than two weeks. There are too many things that can go wrong. Why would you give away two months of rent when you are highly likely to find someone else willing to rent it earlier?

If then want it in November, they can start paying rent now and it will be there when they arrive.

Andrew B. · Answer

I would ask them to sign an "Agreement to Hold" stating that they are paying you a fee of 1 month's rent in exchange for holding the rental for them. If they move in on November 1, the fee becomes their first month's rent. If they do not move in, the fee is kept by you as damages for holding it for them. I've never had to test it in court, but in my eyes, you have legal justification to keep a fee paid to you, because you fulfilled your end of the agreement and held the property for them.

Raj K. · Answer

@Melanie Thomas Actually I have a renter who is going to stay till the new renter moves in. I'm kind of covered that way. This is just in case the new tenants tells me 15 days before moving in that they dont want the house.

Can I get them to sign a lease AND add a rider to the Lease indicating "Even though the lease start date is 11/21 -> the security deposit - which is 1.5 times rent - will be forfeited if you decide to not take on the lease"? IS that strong enough to challenge if they lawyer up?