How to get commitment from a renter contingent on our closing

Question

We are scheduled to close on a new home June 15th; so I listed our current property for rent available July 1st.  We found a good renter that is very interested but I don't want to sign a lease until we are sure of closing.  What would be a good way to get a commitment from them contingent on our closing.  I don't want to turn down applicants and then have these renters back out last minute.

Account Closed · Answer

You can go ahead and sign a lease with move-in date of July 1st.  Include a get-out-of-jail-free clause, that says if you can't deliver it on time, the tenant can break the lease at their option, and you will only be liable for money they've already given you.  This is the clause we used in our apartment lease in CA.  Does the same thing:

"Possession of the Premises. If, after signing this Agreement, Tenants fail to take possession of the premises, they will still be responsible for paying rent and complying with all other terms of this Agreement. In the event Landlord is unable to deliver possession of the premises to Tenants for any reason not within Landlord's control, including, but not limited to, failure of prior occupants to vacate or partial or complete destruction of the premises, Tenants will have the right to terminate this Agreement. In such event, Landlord's liability to Tenants will be limited to the return of all sums previously paid by Tenants to Landlord."

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You could delete the clause: "failure of prior occupants to vacate" and leave the rest.

Rachel Palmer · Answer

Good point Brian...I really sound like a jerk when you put it that way.  We told them about the closing date contingency and they are ok with it.  They are currently renting month to month and 2 weeks would be enough time to extend if something went wrong. I am just looking for advice on how to handle the situation being a complete amateur.

Brian Mathews · Answer

So they are supposed to put their lives on hold because you aren't sure of your close?   What if they sign a lease, yours falls through and they already told their previous landlord they'd be out by a certain time and that landlord has the place already rented for his next tenant?  Are you going to pay for them a place to live until your new house closes or doesn't.   What if yours falls apart and it takes a month to straighten out?   What is the other person supposed to do?  Wait for you?  I would never sign a lease with anybody playing this game.