Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
There is a reason why most experienced landlords say that you have to be strong and tough. If you give an inch people take a mile. We had a home that we were trying to rent around New Years/Christmas. A tenant applied using smart move and everything looked good. She had good credit, work history, and no evictions. She asked if we could hold the home till she got paid next. 2 weeks? Sure no problem. She was supposed to move in tonight. I called her and she told me that she had a car problem and couldn't afford deposit or first months and was sorry for wasting my time. I literally turned down 10-15 interested parties because it was "already rented". Learn from my mistake!! I know I sure did.
Investor · Latonia, KY · Member since 2012 · 107 posts · 50 votes
11y
For me deposit has to be in my account prior to removing the listing. Then prorated rent deposited prior to getting keys. Be consistent and you'll have no problems.
Investor · Latonia, KY · Member since 2012 · 107 posts · 50 votes
11y
IMO get the full security deposit. That way it secures you at least one month of rent. Not to mention they need that to move in for me anyway. Then I prorate the first months rent.
I find that really separates the tire kickers from the truely interested. I also make this very clear in the listing.
Philadelphia, PA · Member since 2015 · 18 posts · 5 votes
11y
When emotion alters devotion. I haven't experienced this yet, as I am new to the field. But im sure many people have. After reading this, i have a better idea of how to go about a situation like this. Im sure you'll find a buyer much more worth your time. Thanks for sharing
Investor · Park ridge, IL · Member since 2014 · 84 posts · 33 votes
11y
I just came to an agreement with a tenant and she is going to move in at the end of February. I told her if i am going to hold the unit for you I will need the security deposit paid in full by the 5th of Feb. $1000.00. If you sign the lease and pay the deposit and then dont end up going through with the lease you loose $500.00. Its all spelled out in the lease agreement. You have to protect yourself, thats the bottom line.
Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
11y
I explain that I will hold a unit for up to 2 weeks with signed contract and security deposit paid. Part of my contract is that they do not receive a refund of deposit if they leave prior to 6 months "whether or not they occupy the unit". (Obviously you can extend the hold for someone you really like).
Also, at every showing I tell the prospect that the unit is still available until a security deposit is paid. The application fee DOES NOT hold a property.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
Sorry that happened to you, @Ryan Dossey ! Most of my current policies regarding things like this came about by learning the hard way. Just letting you know I've been there, too!
I just came to an agreement with a tenant and she is going to move in at the end of February. I told her if i am going to hold the unit for you I will need the security deposit paid in full by the 5th of Feb. $1000.00. If you sign the lease and pay the deposit and then dont end up going through with the lease you loose $500.00. Its all spelled out in the lease agreement. You have to protect yourself, thats the bottom line.
I wouldn't have them sign the lease until you have the full deposit and full first months rent in your possession and you're ready to hand them the keys. I'd have them just sign a "Holding fee agreement" (Fee being important) that states that they're giving you $1000 to hold the property until a specified date, if they sign the lease on or before the agreed upon date the $1000 will transfer to a security deposit, if they don't they forfeit the full $1000 (Why give them half back if they wasted a full month?). I wouldn't like the idea of having a signed lease without knowing for sure they were moving in. Just a suggestion.
Investor · Meriden, CT · Member since 2013 · 201 posts · 145 votes
11y
I always request a full security deposit to hold an apt. Im only willing to do so for a valid reason such as potential tenant wants to give the previous landlord a minimum 30 days notice ( which also means that this tenant will be considerate enough to give me 30 days notice when my lease is over and they want to move out). Or if its a section 8 tenant and the inspection cannot be scheduled right away.
I never hold an apt if the issue is money, ie I dont have the money now etc. If you have money issues before moving in then you cannot afford the apt.
I also have a non refundable fee to hold the apt. Tenant is credited the entire fee when they move in. They lose the fee is they dont move in.
Rental Property Investor · St Paul, MN · Member since 2013 · 91 posts · 45 votes
11y
That is exactly what I do. If they are asking you to hold the property, they are basically asking you to keep it vacant - and lose money! Umm, sorry, that's not why I own rental property. Current tenants I have wanted me to hold a side of my duplex for 6 weeks. It was right in the middle of april and their lease/s were up Jun 1 and July 1 (they weren't living together at the time). I appreciate that they wanted to honor their leases and do right, but I was getting plenty of calls and it's a very desirable area, and it was spring. However they seemed like ideal tenants, even after background checks, etc. So I had them give me a fee equal to a full months rent, told them I wouldn't hold it that long but I would start the lease part way through May and the fee converted into their deposit after they had paid the first month's rent and signed the lease (before moving in). They have been great tenants and are still there to this day.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
11y
Ryan,
Congrats on taking over the "Trending Discussions." Like many others, I was tired of looking at @Ben Leybovich up there for a while. Also, your avatar is much easier on the eyes than Ben's.
Rental Property Investor · Richfield Springs, NY · Member since 2014 · 59 posts · 8 votes
11y
yes agreed!! deposit to hold apt. i made the mistake of letting a friend move in and lost a month and a half before i finally got it rented. lesson learned. deposit signed lease and first month before they get the keys
yes agreed!! deposit to hold apt. i made the mistake of letting a friend move in and lost a month and a half before i finally got it rented. lesson learned. deposit signed lease and first month before they get the keys
I would be sure you call it a holding fee, and then tell them that fee can be applied to the deposit after signing the lease and paying the first month's rent. Deposits are supposed to be refundable, so if they flake out and find somewhere else to live they may ask for their 'deposit' back. Some states this may get you in trouble if you tell them it's just the deposit.