Approving a different applicant than the first.

[Angela DeBorja]

I am helping my dad find tenants for his 3 vacant units in his building in Baltimore. I have 1 potential tenant that is very interested in one of the units and we approved her for a 6 month lease ( no other interest in the property initially).  She said she is going to provide first month's rent and security deposit next week, along with a signed lease after reviewing it this weekend and borrowing money from her parents for the deposit.. In the meantime, I have shown the unit to another gentleman who is very interested in the unit too. I told him there is an approved application on the unit right now, but no deposit received or lease signed yet. He asked, well, what if I get the application to you , sign the lease, and have the first month's rent and security deposit in a few days. Would that get me in? The 1st potential tenant never signed any holding agreement and I'm still awaiting her move in/deposit funds. Since either party had not signed any contracts, we still have the right to offer the unit to the 2nd party who wants a 1 year lease, correct? Especially if our criteria states 12 month term? 

[Michael Noto]

In order to avoid this situation going forward I always tell any an approved applicant the following: "We do not stop showing the apartment until we have a deposit from an approved applicant."

This way, the approved applicant knows the exact risk they are taking by not giving a deposit to hold the apartment right away.

The first applicant could disappear for all you know.  People will walk away in a second when they have no money at stake.