should i ask for holding deposit or signing lease now?

5 Replies

i got the future tenant. but the house is not gonna be ready until early dec and future tenant is not gonna move in until mid dec. 

if i approved the application, should i ask for holding deposit which it will become the security deposit? how much? and any sample for the aggrement that i can see? .....

or just sign the lease for future move in date?

the property is in washington state.

I don't hold the place and take it off the market until first months rent is paid, security deposit Is paid, and lease is signed.  Otherwise I keep showing and taking apps. 

We also require payment of the security deposit and first months rent in certified funds before we even write up the lease. Until that is paid, the property is still marketed and still available.

When I make my lease, it states the date the lease is signed and then the dates that the lease is in effect. So we could sign on November 24, 2014, but the lease term is from 01 December 2014 to 30 November 2015.

Also, it's probably easier to not advertise a rental weeks before it's actually ready to go.

I require a hold deposit if the property is more than one month from being available.

The policy is half the first month's rent. They have up to two weeks before they are supposed to move in to notify us that they do not want the unit, if they do they get the deposit back. If not they lose the money. It has come in handy a couple times.

get that money now or else they WILL find a way to backout!!!!!  Just because it's not finished is of no consequence.  Units routinely get shown and leased while current tenant is still there.  My lease requires the tenant to decide on renewing within 60 days so that way i have 2 months to find a tenant.  I recommend taking the security deposit and making it non refundable if they back out.  You can then allow them to give you the first months rent on the move in date.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.