Advice Needed - Accept this tenant or move on?
Hello, I am a new buy and hold investor and this is my first time to post so please forgive me if I don't do something right.
We currently have a house available for rent that we have marketed locally on FB, Craigslist, etc. for about a week now. Do not have it listed with a realtor yet. I have had several parties contact with interest but only one family has come out to see the property. They love it and want to sign a lease ASAP. Now here is where it gets sticky.
1. They are selling a home and building a new one. So they would live in the rental while their new house is being built (builder says 7 months from foundation being poured). They have asked to sign an 8 month lease at full rent price and then go month to month with a 30-day notice at which time they will pay an additional $50 month.
2. They wouldn't move in until March 20.
3. All of this is contingent on the current contract on their house closing as planned.
I am unsure how to best handle this. On the one hand, they are the only applicants so far. On the other, if I keep my house off market and then something doesn't work for them and they pass I am SOL and have to start all over.
They have already filled out an application (which looks GREAT and I am confident they would be great tenants). I told them we wouldn't move forward until their option period is over.
Solutions I am considering:
1. Upon execution of the lease (after option expires on their home), they provide deposit, half of which will be nonrefundable if they have to cancel the lease before moving in.
2. Hold tight, accept other applications and decide which applicant is most advantageous.
3. Move on completely and tell them their timeline just doesn't work.
Appreciate any and ALL advice including options I am not thinking of. I HATE the idea of letting them go only to not find another great tenant. But would also like to start collecting rent ASAP. Thanks!!!