Allowing tenants to move in later in month

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Allowing tenants to move in later in month

Eric Samuels
Investor · Philadelphia, PA · Member since 2021 · 64 posts · 12 votes

I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Eric Samuels:

I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?


1. I don't hold a rental without money in hand. They need to pay the Holding Deposit or Security Deposit at the time of approval so I have evidence they are serious. If they cancel, they forfeit the deposit.

2. I don't typically hold a vacant rental for more than 10 days. After that, they have to start paying rent, whether they occupy it or no. If they don't want to rent early, then they have the choice of waiting to see if it's still on the market when they are ready.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    If it’s within the first 10 days of the month I’d pro-rate went and want that amount of rent plus security deposit before the 1st. Even though they aren’t occupying the spot, you are holding it for them. What if the 10th comes and goes and they “found somewhere else”?

    If it’s beyond the 10th it’s up to you to decide if you could find someone else better and faster. If not, maybe agree that you’ll have to charge a minus of 1/2 months’ rent and they can start to occupy any time after the 15th. But everything is still due by the first. 

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Eric Samuels:

    I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?


    1. I don't hold a rental without money in hand. They need to pay the Holding Deposit or Security Deposit at the time of approval so I have evidence they are serious. If they cancel, they forfeit the deposit.

    2. I don't typically hold a vacant rental for more than 10 days. After that, they have to start paying rent, whether they occupy it or no. If they don't want to rent early, then they have the choice of waiting to see if it's still on the market when they are ready.

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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    2y
    Quote from @Eric Samuels:

    I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?

    Why wouldn’t you? Lease starts on the first, not the physical moved-in date. Explain to the potential tenant that anything else creates problems on the back end when the lease is up. 
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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    2y
    Quote from @Eric Samuels:

    I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?

    Why wouldn’t you? Lease starts on the first, not the physical moved-in date. Explain to the potential tenant that anything else creates problems on the back end when the lease is up. 
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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y
    Quote from @Nathan Gesner:
    Quote from @Eric Samuels:

    I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?


    1. I don't hold a rental without money in hand. They need to pay the Holding Deposit or Security Deposit at the time of approval so I have evidence they are serious. If they cancel, they forfeit the deposit.

    2. I don't typically hold a vacant rental for more than 10 days. After that, they have to start paying rent, whether they occupy it or no. If they don't want to rent early, then they have the choice of waiting to see if it's still on the market when they are ready.


     Exactly what we do as well except we require first month payment with deposit when lease is signed or the lease is invalid. If we are letting someone prorate a month - move-in at the middle of the month - we prorate the second month and still collect deposit and full first month with the lease. 

    You have to be careful with partial month people beginning a lease. More times than not they can't come up with the rent and deposit, which means you are going to have trouble their entire tenancy.

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  • Sam YinPro Member
    Los Angeles, CA · Member since 2021 · 583 posts · 738 votes
    2y

    @JD Martin

    I totally agree. Just like you and @Nathan Gesner, I feel this is something we do as landlords because people have unique life situations. However, we just need to be weary of potential red flags based on the totality of the circumstances and understand what may potentially come of people's special requirements.

    I always collect the security Deposit and first months rent, before I commit to reserving the unit.

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  • Eric Samuels
    OP
    Investor · Philadelphia, PA · Member since 2021 · 64 posts · 12 votes
    2y

    @JD Martin

    I believe this is what I did the first time a tenant asked me this and I think it makes sense to do this again. Full money in hand for first month before the first month and pro-rate the second.

    Thanks,

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    2y
    Quote from @Eric Samuels:

    I’m new to house hacking a duplex and this is the second time someone asks me for a late move in. If I allow someone to move in later in the month (target month is nov) Should I still mandate full deposit and first months rent before before the first of the month?


     Absolutely. Our policy is that we do not pull a unit off of the market until we have the full deposit, first month's rent and any prorated rent and a signed lease. We give people 48 hours to comply. 

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  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    2y

    I will only hold a rental for 14 days. I negotiate "lease-start" date not "move-in" date; I don't care when they move in just when they start paying. Usually I have multiple qualified tenants so I just move on to the next one if they are unwilling to start a lease within 14 days. If I didn't have others waiting, I might reconsider but I"d keep showing until I had an acceptable deal nailed down (with money in hand).

    For a vacant unit, I require a full month's rent and security deposit (and water deposit and pet fees if applicable) up front in cash or by a cashiers check on a local bank. I prorate the second month if the move in date is not on the 1st. For example if they set a lease start date for 11/12, they would pay rent up front for 11/12-12/11 and on 12/1 the remaining rent for Dec (12/12-12/31) would be due.

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  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    2y

    Completely depends on your market and the policies you choose to implement. If you have a "hot" market and tenants are banging on your door for rentals, you can have a policy that the rental begins on the 1st. If your tenants have a lot of options, that may turn off potential tenants and they will go elsewhere. 

    You should also consider if you need turnover time. Some units needs rehab work in-between tenants. 

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  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    @Eric Samuels

    This happens to me all the time. I tell them they can have it for free the last couple weeks of the month. But I need the deposit before move in. I’d rather have someone in there vs it being vacant. Plus the utilities are in their name vs mine. And we look like heroes to our new tenants. Lol. It helps them immensely. I’ve been a tenant with a tight moving schedule out of one place and trying to wait to move in on the first at the other rental. Sometimes you have to get a storage unit because the timing doesn’t work out. So I play ball and work with my tenants as if we’re partners. They pay me good cash flow and pay off my rentals, and I give them a place to hang their hat for many years, and do them a solid once in awhile. :)

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