Residential Landlord · Greenfield, WI · Member since 2013 · 299 posts · 126 votes
This is a first for me.
They've signed the one year lease, given me the full security deposit, supposed to move in on the 1st, sends me a text that they're $70 short, ($620 rent)
Won't have the rest til they get paid on the eighth.
I'd like to cancel the whole shooting match, not let them in, find new tenant...landlord friends say let them move in, charge the late fee on the eighth.
I thought the golden rule was never let them move in without the full month's rent.
It's the way I've always done it.
This is a standard state of Wisconsin lease from Wisconsin Legal Blank.
Advice?
Thank you,
Arnie
Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes
10y
I just denied a move in today for not having the full amount. Stick to your policy. They are already on a negative paycheck-to-paycheck situation. It rarely improves.
Real Estate Agent · Manalapan, NJ · Member since 2016 · 13 posts · 3 votes
10y
I have let tenants move in when short if they were waiting for a security deposit or some other circumstance. If they are just short because they don't have it, it may not be a good sign of the future. I have learned that the ones who are short to start without good reason usually are always short.
Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes
10y
I just denied a move in today for not having the full amount. Stick to your policy. They are already on a negative paycheck-to-paycheck situation. It rarely improves.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 936 votes
10y
I would let them move in with a due date for the remaining $70. It's a small amount.
You have to compare it to the cost of another month or two of vacancy and the risk you assess of them not being able to pay the rent in the future and you have to evict them. I've let tenants move in a little short like that and it worked out fine.
Rental Property Investor · Saint Cloud, WI · Member since 2016 · 186 posts · 63 votes
10y
I'm in WI myself, just north of you.
I'm with those who say walk away. They already don't have the rent. It's the first of 36 more reasons over the course of 12 months you won't have the rent when they say it will be there.
Apologies for being direct.
I speak from experience.
Investor · IN · Member since 2012 · 263 posts · 168 votes
10y
Trust me.... It won't get any better. If you let them 'slide' the 1st month.......It will become EVERY MONTH. I made this mistake a few years ago. Live and Learn!!
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
10y
Have them cut a check for the $ 70 and you hold it till they have the cash . if they dont pay deposit the check . If it bounces , then you take them to court for the bounced check
Investor · Titusville, PA · Member since 2015 · 298 posts · 150 votes
10y
If they couldn't come up with a creative way to get 70 dollars from a friend or a family member in order to get themselves a place to live, they don't deserve to be your tennant. You're asking for trouble if you allow them to have the clout they will have with the law after having become your tenant. If they couldn't borrow $70, they will always have an excuse for being unable to pay.
Real Estate Agent · NJ, NJ · Member since 2016 · 30 posts · 23 votes
10y
I say you have a protocol for a reason. You let it go now, it's opening the box to more late rent in the future. Like someone else said. $70 can be easy to come by with a friend. If their friends or family aren't willing to loan them the $70 that may be saying something without directly saying it. Walk away.
Lender · Katy, TX · Member since 2016 · 47 posts · 48 votes
10y
There seems to be a common theme here, and I would have to echo that sentiment. Thanks to a few early lessons, I will not allow tenants to move in if they are short from the beginning. You can not charge enough in late fees to cover the pain in the @$$ that these tenants will most likely be.
Did you contact the previous landlord and ask them what their previous payment history was during your screening? Asking if they were any monies owed, or if they had paid late, and how many times?
Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
10y
Tell them you can't release keys without the first months rent. Never, ever worry about losing a month or two to find better tenants. I used to worry about a month loss of money, let living disasters move in, and end up more in the hole In money and time.
Investor · Mount Dora, FL · Member since 2015 · 92 posts · 44 votes
10y
Run, don't walk, away. Yes, $70 is not very much money. In my eyes, that actually makes it worse, not better. If they don't have a way of generating $70 for a week....they are up the creek already and their problems will just become your problems. If they don't have family/friends/boss/etc to lend them $100, if they have no other way of coming up with that money....no bueno! It's not like it's something that came up as an emergency, it's rent... How dare they expect you to eat the bill for 8 days....before they even move in? No way!
Next month it will be that they had to pay for a medical copay, their car had to be fixed, whatever. Either they can't afford the rent or they are not prioritizing appropriately, either way YOU lose. You are better off not taking this on.
Residential Landlord · Greenfield, WI · Member since 2013 · 299 posts · 126 votes
10y
Ok, ok!!!
How do I get legally?
Should I offer them the security deposit back and say "have a nice day."?
I don't think it's worth the trouble to make this s big problem.,,
I wish it was quick and clean.
"Here's your money, go away..."
Real Estate Agent · Cranston, RI · Member since 2016 · 51 posts · 49 votes
10y
If you've completed proper screenings (previous landlords references, verified income, credit check, etc.), you can offer them to move in on the 8th. Charge them the monthly rent on a prorated basis and require the initial move in amount to be in the form of a money order or cashier's check (no personal checks).
As stated here by others, it may be a very good indication as to what's to come. The loss in vacancy may be well worth finding a good, qualified tenant.
I'm not familiar with Wisconsin landlord-tenant laws. I have a written policy that is signed with the application that assesses a fee for cancelling their application.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
10y
Screw that! If they don't have the money they can't move in. If they are $70 short they should have a yard sale or something. Instead they think they can make it your problem. Give them their deposit back if you're generous - or keep some of it due to the time that your unit was off the market.
They will either
1. see that you mean business and pay up and hopefully no more fake problems
or
2. see that you mean business and go on their merry way
I tend to agree with most others on this thread. It is the first payment, and there is already a problem. I would refund their deposit and continue my search for a tenant
Everywhere · Member since 2016 · 63 posts · 26 votes
10y
Don't rent to them! If they can't pay now that is a huge red flag and sounds like a huge problem and headache. I would give them their deposit back and find another tenant who has the money. Otherwise you will be chasing rent money every month and have to deal with eviction. By allowing them to move in you are letting them know that not paying you on time each and every month is ok. If you give them an inch they will take a mile. Get out of this ASAP!
Waunakee, WI · Member since 2015 · 63 posts · 28 votes
10y
I would basically agree with everyone. They pay the full amount on the 1st or they find somewhere else to live. It's not as if you have a three year history of them paying on time, and it's a one off thing, they literally cannot make the 1st payment.
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
10y
James Mc Ree Careful James. A tenant that starts off with late rent the first month is headed down the road to be a problem tenant and could very easily cost the OP way more than 2 months vacancy before you are done. Best course for the OP here is don't rent to them. The risk is too big. RR
Investor · Indianapolis, IN · Member since 2012 · 20 posts · 6 votes
10y
My motto is "No tenant is better than a bad tenant." Return the deposit, minus what you and they agreed you'll keep. Go on to the next best qualified prospect. Don't look back. They did you a favor early on by letting you know how they view paying rent.
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y
I would not finance the $70 as Rent, but I have Financed the Security deposit, its not the best situation, but if they have a clean background, and are just having a tough month with moving and all, maybe they will be good, its a roll of the dice, i guess a good way to tell is their car and cloths, are they in new name brands and wearing $300 shoes, driving a new car but working as a cashier. or burger flipper? or is it modest, and they have good jobs. not a great way to start, but doesnt mean they will be bad tenants, but it is more likely.
Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes
10y
What did you do to screen these tenants? How's their credit? This isn't the kind of thing any tenant who made it through our screening process would ever do.
We require security deposit at lease signing, which is done at least two months in advance of occupancy. The security deposit is 1.5 months rent if they have pets. We realize that's a lot of money, so sometimes we allow them a little time, and collect half of the security deposit at lease signing and the other half later, but before occupancy. First month's rent is due in full to get keys.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
10y
What is the residential history? Move around a lot? $70 is not much if they are short, expect short a few times in the future. If they are perfect in payment they will find a home to purchase soon.