Real Estate Investor · Waukegan, IL · Member since 2013 · 367 posts · 80 votes
My current tenants are moving out 6/27/15, their words, "to allow me time to get ready for the new tenant" (nice of them) which is scheduled to move in 7/1/15. They've been very good tenants and I don't suspect I will have much if anything to clean or repair. Fingers crossed. I'm scheduled to meet the new tenant 6/20/15 to get 1st months rent (I already received the "hold fee", which will become the security deposit). She says she just wants to get it out the way now.
My question is since I'd be receiving July rent should/could I A) have her sign lease dated for that day but effective 7/1/15 B) wait until July 1 to receive rent and sign lease or C) don't take rent and wait until July 1 to sign lease and give possession? Has anyone run into issues with receiving 1st mo rent before signing lease and actual start of tenancy?
I take the first month's rent ahead of time frequently.
I would have her sign the lease dated for that day but effective 7/1/15.
Be sure to put something in the lease that says it is void (or the dates need to change) if you are unable to deliver the unit to them on time, due to no fault of your own. This is just in case the current tenants don't move out on time, or there are extensive issues to deal with after move out.
@Account Closed Thanks for the suggestion. Looking over my lease I do have a clause regarding inability to deliver but it doesn't state anything "due to no fault of Landlord". I'll add that.
Tell them in advance if there's a delay, you'll prorate the days on the following month.
If rent is $1,000 and it's a 30 day month, then that = $33 a day
So if they move in on the July 3rd...they would pay $934 for their second month ($1,000 - $66). The prorated amount should be taken out of your current tenants deposit, so it's a wash.