Tenant wants to lease 45 days out

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Tenant wants to lease 45 days out

Mary Eubanks
Member since 2022 · 47 posts · 21 votes

First timer to long term leasing. I have received a request from a prospect that has 3 huskys, on a Chapter 13 repayment plan, but has great 5-year rental payment history, and is relocating from another state but not until March. While I have no problem with any of this, the home is vacant now. Any ideas on what I can propose if they don't want to lose it and I can start covering the monthly payment? My only thought is to ask them to sign a lease to start February 1st, not sure if they will go for that. Any advice is much appreciated.

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Leo R.
Investor · Member since 2021 · 591 posts · 695 votes
3y
Quote from @Nathan Grabau:

I would not do this unless the property is very hard to rent. I would much rather take a $100-200 cut to increase tenant interest, than lose 45 days, deal with 3 large dogs in the property, with someone who is emerging from bankruptcy. 

If you do, I would make sure you get first months rent and the deposit at signing, so if they change their mind about moving you are not left with nothing. 


 100%

Personally, I'd collect deposit, first month's rent, AND last month's rent at signing.

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  • Nathan Grabau
    Realtor · Longmont, CO · Member since 2021 · 577 posts · 631 votes
    3y

    I would not do this unless the property is very hard to rent. I would much rather take a $100-200 cut to increase tenant interest, than lose 45 days, deal with 3 large dogs in the property, with someone who is emerging from bankruptcy. 

    If you do, I would make sure you get first months rent and the deposit at signing, so if they change their mind about moving you are not left with nothing. 

    1Reply
  • Jon Puente
    Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes
    3y

    Hey Mary, 

    I do self manage my long term rental so I can only answer for what I would do in your shoes!  I personally would not plan for someone to move into my property well in advance, especially because there are a lot of factors here:  

    1) She is moving states, which can bring A LOT of uncertainty.  What if she is delayed in moving, or can't get help traveling.  Or what if one of her dogs or family member gets sick/injured and she has to care for them, the list goes on...

    2) I understand you said she has great rental history, however a Chapter 13 repayment plan can be a topic of discussion.  I would not bet all my eggs on this tenant pulling through on all angles with that type of situation. 

    3) She has 3 husky's. Just one pet can be a handful, let alone 3 husky's...  I do not know what type of property you have or amenities, but you can BET that they will do some damage longterm. 

    With that being said, if you are desperate for cash or need to fill vacancy because of mortgage payments or on going expenses, then do what you have to do.  My plan would be to keep marketing your property on Facebook, Zillow, and Craigslist until you can get someone to physically look at your property with less concerning factors.  

    Great Question!

    1Reply
  • Leo R.
    Investor · Member since 2021 · 591 posts · 695 votes
    3y
    Quote from @Nathan Grabau:

    I would not do this unless the property is very hard to rent. I would much rather take a $100-200 cut to increase tenant interest, than lose 45 days, deal with 3 large dogs in the property, with someone who is emerging from bankruptcy. 

    If you do, I would make sure you get first months rent and the deposit at signing, so if they change their mind about moving you are not left with nothing. 


     100%

    Personally, I'd collect deposit, first month's rent, AND last month's rent at signing.

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    If they are willing to rent it from Feb 1, I wouldn't have a problem with 5 year's of good rent history.  Have them sign the lease with a non-refundable deposit that once they move in becomes their damage deposit.  Also make sure they get utilities turned on as of Feb 1.

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  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    3y

    You didn't tell us where the unit is located, so that prevents us from knowing anything about the market.

    I would NEVER hold a unit off the market for a potential tenant. If you want the unit, you pay for the unit. Every day it is not rented costs you money. 

    The only time you should hold a unit off the market is if the tenant has provided a large non-refundable deposit. And only then if the unit is in a very hard to rent area. 

    0Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Mary Eubanks:

    First timer to long term leasing. I have received a request from a prospect that has 3 huskys, on a Chapter 13 repayment plan, but has great 5-year rental payment history, and is relocating from another state but not until March. While I have no problem with any of this, the home is vacant now. Any ideas on what I can propose if they don't want to lose it and I can start covering the monthly payment? My only thought is to ask them to sign a lease to start February 1st, not sure if they will go for that. Any advice is much appreciated.

    I'd agree to take her and I woud tell her that I'd stop advertising the property when she signs the lease and starts paying. So, if she wants to lock down the property, she signs today and starts paying rent from today forward.
    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Mary Eubanks:

    This personal is financially irresponsible. They have a "great" repayment plan? I can find you millions of renters that don't have a repayment plan because they were responsible adults in the first place. I'm sure they have a sob story about divorce, an evil spouse that raked them over the coals, and all that nonsense. Chapter 13, a renter, and they still have three large dogs? Those are red flags to me.

    You should have a policy of not holding a property for anyone more than XX days. I think 14 days should be the maximum. Some limit it to one week. I have seen so many Landlords hold property for a month or more (with no money down!!!) and then the renter never shows up.

    Find a qualified renter that is ready to rent within a couple weeks. If you aren't finding anyone, lower your price but do not lower your standards.


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    1Reply
  • Mary Eubanks
    OP
    Member since 2022 · 47 posts · 21 votes
    3y

    Thank y'all so much! Lots of rentals in the area are sitting on the market right now, so I will decrease rent and see what happens.

    1Reply
  • Phillip AustinPro Member
    Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
    3y
    Quote from @Mary Eubanks:

    Thank y'all so much! Lots of rentals in the area are sitting on the market right now, so I will decrease rent and see what happens.

     That's what I would do. Decrease in increments until you see traction. 

    I agree with @Nathan Gesner. Too many red flags with the prospect AND 45 days is too long. A more common standard is to hold for 15 or 20 days max.

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