Should I let tenant move in 2 weeks early without security deposit ?

Investor · Aberdeen, NC · Member since 2015 · 5 posts · 0 votes

I have a possible tenant who would like to move in two weeks prior to August 1st and only pay a prorated until the first. The tenants would like to pay the first months rent and the first month security on August 1st, but would like to move into our home July 15th. Not sure what we should do? He also wants to put in an above ground pool.

He also said he wants to move his family out where they live because their Landlord keeps going in their house when they are not home.

Any input would be greatly appriciated, thank you. :)

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Travis Lloyd

Real Estate Broker · Fairfield, CT · Member since 2015 · 312 posts · 231 votes

11y

Can I live in your house? I PROMISE I will give you money next year!

No. The security deposit serves two purposes. It protects you in case of damage or if the tenant skips out, but it also is there to help you screen out people that may have a problem paying rent despite their best intentions. If they cannot put together 1 month's security, do you really want to risk that they will have enough august 1? I also don't believe in waiting for "my other security deposit to be returned". That is never a good sign.

Side note: pool? Seems like you should have an extra deposit for something like that. Also check with your property insurance provider, as there may be an additional insurance expense for you. Perhaps you could get an additional pool deposit plus charge higher rent to offset the insurance?

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Travis Lloyd
Real Estate Broker · Fairfield, CT · Member since 2015 · 312 posts · 231 votes
11y
Can I live in your house? I PROMISE I will give you money next year!
No. The security deposit serves two purposes. It protects you in case of damage or if the tenant skips out, but it also is there to help you screen out people that may have a problem paying rent despite their best intentions. If they cannot put together 1 month's security, do you really want to risk that they will have enough august 1? I also don't believe in waiting for "my other security deposit to be returned". That is never a good sign.
Side note: pool? Seems like you should have an extra deposit for something like that. Also check with your property insurance provider, as there may be an additional insurance expense for you. Perhaps you could get an additional pool deposit plus charge higher rent to offset the insurance?
7 Reply
Craig Brouillette
Investor · New Orleans, LA · Member since 2012 · 57 posts · 15 votes
11y
That's a no. To move in you have to get at a minimum the deposit. You start bending rules now and the tenant will continue expecting you to do the same going forward.
4 Reply
Nat C.
Investor · Miami, FL · Member since 2013 · 807 posts · 475 votes
11y
No, no, no. What happens if you give them keys and they never pay the rent and deposit on August 1? Depending on your state it could take months to get them out via court eviction. You gained a messily 2 weeks rent and probably some damages and cleaning costs.
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Tony Christian
Rental Property Investor · Hollywood, FL · Member since 2015 · 74 posts · 38 votes
11y
I think you see the consensus is against pre-deposit move in. Rightfully so.
as far as the prorated rent is concerned, I require a full months rent prior to moving in, regardless of the move in date. They then pay the prorated amount the following month.
Another point...tell him you need to speak with the previous landlord to verify references. I wouldn't be surprised if there's more to the story than he's telling you. Maybe even an eviction.
The pool is a liability. It will cost you to remove it when they move. If it doesn't add value to your property, is it really worth it? If you still allow the pool,put conditions in such as paying rent on time for 3 - 6 months and additional deposit. Consult your attorney.
This guy sounds high maintenance. He hasn't moved in and he's already calling the shots and asking for special treatment. Like any relationship, watch the warning signs.
4 Reply
Alexander FelicePro Member
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
11y
No you shouldn't let anyone move in without cash in fist. Real cash (money order), no personal checks.
and NO ABOVE GROUND POOL!!!! I might even reject a tenant who was contemplating that. Those things cost like ~5-6k and he's just going to spend that in a place he rents? That type of money mismanagement would set alarms off in my head. Not to mention he's talking about paying for you to have a massive expense and liability.
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Nat C.
Investor · Miami, FL · Member since 2013 · 807 posts · 475 votes
11y
Agree to above ground pool and then go to Walmart and buy one of those blow up numbers for the kids. No kidding!
1 Reply
Joshua De Young
Professional · Evansville, IN · Member since 2015 · 12 posts · 6 votes
11y
You also need to be careful, to make sure you are not breaking any Fair Housing Laws. If you make an exception with allowing this ONE tenant to move in this time, if you don't allow someone else to do the same thing later, they can sue you for discrimination for not giving them the same deal. Hello $35,000 attorney bill.
Get your rental policies in writing and stick to them!
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
Absolutely not! Moving in July 15 is fine. But I want a full month's rent (NOT PRORATED) plus the FULL security deposit in cash or equivalent to move in. Prorate the august rent, so only half a month is due on August 1 (NOT August 15).
The risk is that you get half a month's rent then have to evict. A savvy tenant can get two months or more for the cost of half a month's rent.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
11y
At the risk of sounding like a recording...no! Why put yourself and property at risk? Protect yourself and your asset first. Good luck.
1 Reply
Randy E.
Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
11y
No to the security deposit request. It's a bad idea to ever allow a tenant to move in without paying the full security deposit.
For me, yes to the prorated rent. If someone moves in after the first, I always prorate the rent. I haven't had a problem with it so far. And, to me, it seems like the fair thing to do.
No to the large above ground pool. I don't think he's planning on spending $6000 on a pool. More than likely, he's getting one of those 36-inch height pools for sale at Wal-Mart that sell for $300-$400. This could be a maybe for me, but I would check with your insurance company to see if you might be held liable for a visitor getting injured in the pool. If you allow the pool, force the tenant to purchase renter's insurance and have him sign an agreement that says he is liable for any injuries to anybody as a result of the pool.
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Account Closed
Investor · Anaheim, CA · Member since 2015 · 56 posts · 11 votes
11y
Well, I think the answer is pretty clear. No. I would even go beyond that and deny this prospect..all I see is a bunch of red flags.
2 Reply
Steve Combs
Investor · Cary, NC · Member since 2015 · 79 posts · 34 votes
11y
For me its a no. If they need to move in, they can pay the deposit and the rent. If they can't afford it, it would make me question if they can afford it.
Once they move in...it is a hassle to get them out if they don't pay.
2 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
11y
And they will want the utilities included too . Another no here .
2 Reply
Darrell Shepherd
Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
11y
Is that a joke? Hehe. As has been stated, NO, NO, NO.
That's a huge red flag. I'd wager a guess he's getting asked to leave more than trying to move early because of the landlord. Also, anybody who cant pay you a deposit without having to wait two weeks is going to be late on rent the first time their car breaks down or they have to buy Christmas presents or any other unexpected expense they haven't planned for.
3 Reply
Ron Biggs
Investor · Midlothian, VA · Member since 2014 · 86 posts · 47 votes
11y
First off welcome to bigger pockets! The comments are correct you are getting great advice! I have fell for things like this more than once and hearing your stories made the alarms go off in my head. Best of luck!
3 Reply
Richard Dunlop
Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
11y
Don't rent to them even if they are borrowing the deposit.
Never let them pay it later.
2 Reply
Joe Glick
Rental Property Investor · Jacksonville, FL · Member since 2015 · 10 posts · 6 votes
11y
Agree with everyone and I'd go with another applicant!!
3 Reply
Taheem Bellz
Atlanta, GA · Member since 2015 · 24 posts · 15 votes
11y
Never, if you start off being lenient you leaving yourself open to future nonsense. It's always best to be firm and fair to all of your tenants.
3 Reply
Earl Allen Boek
Rental Property Investor · Redding, CA · Member since 2010 · 91 posts · 7 votes
11y
NOPE NEXT!
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Joel OwensBusiness Member
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11y
NO
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Renita Kerr
OP
Investor · Aberdeen, NC · Member since 2015 · 5 posts · 0 votes
11y
Thanks everyone for the great advice! I really appreciate you all taking the time to respond. It all has been very helpful! :)
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
Originally posted by @Renita Kerr:

I have a possible tenant who would like to move in two weeks prior to August 1st and only pay a prorated until the first. The tenants would like to pay the first months rent and the first month security on August 1st, but would like to move into our home July 15th. Not sure what we should do? He also wants to put in an above ground pool.
He also said he wants to move his family out where they live because their Landlord keeps going in their house when they are not home.
Any input would be greatly appriciated, thank you. :)
No keys until you get the cash.
Also would say no on the pool as well.
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Stephen E.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
11y
Everyone has focused on the money issues and I agree that these are serious, you should get everything up front in cash equivalent as @Jon Holdman suggests. Some have commented on the pool, which you could indeed be left with as a white elephant and liability risk. But the complaints about the landlord would be a big worry for me. Tenants that have stories of their poor relationships with prior landlords set off alarm bells. Lets face facts, landlording is a business and the majority of landlords would tend to treat it that way. Why would a current landlord waste his or her time entering a tenant's home? It makes no sense to me and sounds improbable. With all this, the money issues, the pool and the general attitude I am with @Joel Owens on this one, NEXT!
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
11y
- Do not let him put the in ground pool in
- any and all move in money required is given in bank certified funds or a money order before keys are given. End of story.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
11y
Also, the guy has money to put an above ground pool in, but does not have money to pay his rent and security deposit?
Or is he expecting you to pay for the pool?
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