How do you handle this? Student tenants lease signing

How do you handle this? Student tenants lease signing

Investor · VA · Member since 2015 · 19 posts · 4 votes

Hi guys:

I recently purchased my first larger student rental SFH. Each housemate and guarantor, if needed, signed the lease with joint and several responsibility for the whole property.

But during the lease signing period before move-in, there was a lot of switching around.  The first student and parent approached me, were qualified and signed a lease.  At that time two other students and parents applied and verbally stated that they were signing so the lease listed three tenants and three guarantors.  Students #2 and #3 then changed their minds so signed Student #1 found a replacement Student #2a and Student #3a.  Student #2a and guarantor signed a lease with Student #1, #2a and #3a and guarantors listed.  Then Student #3a dropped out.  On and on...

In the end every tenant and guarantor signed a lease but only the very last tenant and guarantor to sign have the correct people listed as tenants and guarantors.  So my questions-

1) What do you all do in this situation?  Do you have everyone signed an addendum with the updated tenants and guarantors?  

2) Do you have any suggestions for how to make this housemate selection process go more smoothly around lease signing?  There is only about six weeks in my area before the lease signing period for 2018-2019 school year starts and I want to be prepared.

Thanks for your help!

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  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    9y

    What? I have one lease signing. That's it. I don't have people change their minds after lease signing. Tell them they need to commit or don't bother showing the place to them.

  • Investor · VA · Member since 2015 · 19 posts · 4 votes
    9y

    Thanks for your thoughts @Chris Martin.  Sometimes the students and particularly the guarantors are not in town for lease signing; they are signing online and do not visit the property until move-in, if at all.  They are backing out after application approval when the lease is sent for digital signature.  

    I didn't have a problem getting the primary student and guarantor to sign and write the security deposit/1st month's rent.  It's the other housemates that are the issue.  

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    9y

    This scenario is precisely why we use a 'binder' to hold a property. I don't accept a deposit, only a binder to hold a property. If they walk, I keep their binder. See also from 4 years ago or this topic at about the same time entitled . 

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