Investor · Glen Ellyn, IL · Member since 2016 · 14 posts · 0 votes
Hi all. I have prospective tenants who are willing to commit by 5/20/18 for a rental that's available 6/1/18. They do not want the lease to begin until 6/15/18 and are willing to do a 12.5-month lease, taking it to 6/30/19. They have paid through 6/30/18 on their current rental with another landlord. Would you:
a) collect full security deposit and first month on 5/20/18,
b) collect full security deposit on 5/20/18 and first month no later than 6/15/18,
c) collect full security deposit plus half first month's rent on 5/20/18 and 2nd half of first month's rent by 6/15/18?
I am treating the security deposit as a non-refundable hold either way - it would convert to an actual security deposit once the lease starts.
I would collect full SD right away to hold and full months rent when they move in. I would then collect prorated rent on the first of the second month.
I had this occur two times. First time I collected security deposit and one month rent, with collecting prorated rent the second month. This confused the tenant for some reason... from other advice on another thread, they suggested to collect security deposit, prorated and full month rent together (e.g., half March and full April, then next rent was May 1st). I did this the second time and seemed to work smoother for me. The tenant didn’t seem to have any issue with this.
Either way collect at least a full month’s rent.
Chris
I would not even consider holding the apartment for these tenants until they pay both first months rent and security deposit. If you allow them to wait until the 15 and then they don’t pay and you then have to start again looking for tenants you will lose another months rent.
Personally when I had this situation I let the tenants know the date the apartment was available and that they could move in whenever they wanted to. The lease started on the first. We have a tenant whom did not move in until the end of the month but she knew we would not adjust the lease and she wanted it so she agreed. So basically she paid for the month even though she was still living in her previous home. I am glad she agreed but if she had not we would of found someone else to rent it. Only if I could not fill the apartment by the first would I consider it and even then they would have to pay up for me to hold the apartment.