Move In Process (Collecting Deposit, Walk through, Etc)
Can someone please review the process im taking below and let me know if theres anything to change?
1. Deposit to hold (up to15 days) (1.5x)
2. We agree on lease start date.
3. Tenant performs pre-inspection of the property, reviews lease, disclosures, sign off all rules, and provide copy of ID/Pay Stub/Letter of employment. Both parties sign off lease.
4. On day of key exchange, pay the 1st month rent.
5. If pro-rating, the 2nd or 3rd month would be prorated [not sure which is preferable].
Am I understanding the standard practice correctly?
@Account Closed For your process:
(1) Why are you holding 1.5x the deposit? You should just receive the security deposit + pre-paid rent (one month's rent), along with the lease signing.
(2) Great - they should sign the lease with the start date + pay the deposit + pay pre-paid rent before you take the property off the market. You wouldn't believe how many tenants flake out of the lease if you don't receive all of that.
(3) I would perform the inspection myself (or with them).
(4) See comment #2.
(5) Pro-rated rent is only if the lease does not start on the day that rent is due. For example, if the lease starts on Feb 5th but the rent is due on the 1st of the month, then February is pro-rated for the # of days that the tenant is there (versus making them pay the full month).
Hope that helps with your process.
@Dana Dunford This helps. In my scenario, I was thinking of doing the following:
Tenant wants to move in on Feb 1 (4 days from now). If approved, I would ask for 1.5 Deposit to hold in certified funds. When they move in, this will be transferred to the Security Deposit Bank Account. If they don't move in, its forfeited. If we are just 2 days away or so, I may just do them both in the move-in.
Also, at what point do we transfer utilities? I guess the day before move-in?
@Account Closed -- Quick question -- what do you mean by 1.5x deposit?
If it's just two days away, then I'd recommend receiving the security deposit, all of February's rent (aka pre-paid rent), and a signed lease right now.
For utilities, they transfer on the possession day (aka Feb 1st), but the tenant should be able to call and get them put into their name in advance.