Tenant Doesn't Have All The $ To Move In

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Tenant Doesn't Have All The $ To Move In

Arnie Guida
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
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Aaron Treloar
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.

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  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    10y

    If they can't pay now, they won't be able to pay later. No move-in money means they don't move-in. Refund them what you're required to and find a better tenant.

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  • Lynn Dee Murrow
    Investor · Las Vegas, NV · Member since 2012 · 119 posts · 104 votes
    10y

    I think it is important to commit to certain standards when renting property and never deviate. If a prospective tenant does not have the deposit and first months rent then move on. There will be another prospect right behind them. Especially if your property is the best or one of the best properties in the sub-market (as far as condition and aesthetics) and is at market rent.

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  • Roberto Moita
    Investor · Templeton, CA · Member since 2016 · 60 posts · 21 votes
    10y

    Remember to run your investments like a business...Stick to your rules. Every time I let a tenant move in without paying the full rent, I always have to eventually evict them. 

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  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    If they don't have the money now, it WILL be a problem down the road. The only thing I might consider is if they just started a new job and are awaiting the return of their security deposit, but I wouldn't have even taken it off the market without first month's rent and the security deposit. 

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  • Christine Mwai
    Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
    10y

    Obviously a roof over their head is not a priority or they think rent is not important.RED FLAG!...  if you do this, expect more partial or non payments down the road. How you set up expectations dictates the rest of the rental relationship.

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  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    10y
    Arnie, You are really overthinking it. If you tell them that you are going to give part of the money back minus fees for breach of contract because they can't come up with the full amount as contractually agreed and send them on their way, you will be shocked at how quickly the full amount will magically become available to them. Take a firm stand now and this will limit how much this happens moving forward. Each time they are late, start the eviction process.
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  • Brandon Schlichter
    Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
    10y

    Usually being short on rent is a sign of things to come, at least that's what I've seen. The amount they're short isn't substantial, so IMO you're taking a smaller risk, but for me i refuse to sign leases until I have 100% of the money in my hand.

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  • Sterling WhitePro Member
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes
    10y

    As others have stated this is not a good start for the prospective tenants @Arnie Guida. From personal experience this will only linger into the following months with late rent.

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  • Arnie Guida
    OP
    Residential Landlord · Greenfield, WI · Member since 2013 · 299 posts · 126 votes
    10y
    All done. Mutually agreed to cancel lease. Thank you, everyone. Arnie
    1Reply
  • Stephen E.
    St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
    10y

    @Arnie Guida That sounds like the best course of action to me. If the tenant does not have all move in monies, then the tenant does not move in. Better to nip this in the bud and look for a more stable tenant than to get into a tale of woe and successive problems coming up with the rent. It is better for the tenant too, they can find something they can more easily afford.

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