showed apartment to two clients, both of whom want it;

General Landlording & Rental Properties
8yFollow

showed apartment to two clients, both of whom want it;

Shoshana Shulman
Investor · efrat, israel · Member since 2014 · 93 posts · 20 votes

Hi Group, 

I might have messed up a bit in communicating. I showed an apartment to a prospective rental family, quoted a price to 'assist them in making up their mind,' and they texted me, 'We'll let you know our answer in a week." A week has passed and they texted me to say, " "We'd love to take your apartment." So I texted, 'Let's meet to sign the contract at your current apt.," and they texted, "Let's meet at your apt. as we want to see it again and take measurements, and discuss terms." I got the feeling that they were giving it a second look, and might change their mind, so I showed it to someone else, and he said,"I want the apartment." Am I obligated to give first dibs to the first people I showed it to? I never explicitly said I was holding it for them, but I think I gave them that impression.

0Reply
33 views

6 Replies

Jump to latestLatest
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    8y

    @Shoshana Shulman, it depends a lot on the law in your area.  Sometimes an oral contract is enforceable, sometimes not.  if you are in Israel I have no idea hehe.  Usually a contract involving real property must be in writing in order to be binding especially if it is supposed to be for more than 1 year, but it will vary.  Did you tell the second person that they had it?  If not you are in the clear either way if you give it to the first group.  Hopefully you have some qualifying language when you show a property like, you must submit an application and pass our criteria in order to qualify to rent a property from us.  I NEVER accept a tenant without checking them out.  That is a very dangerous thing to do.

    0Reply
  • Jacob Villalobos
    Whittier , CA · Member since 2013 · 176 posts · 96 votes
    8y

    Run background checks on both of them and tell them, "I'll get back to you."

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    It's very common for people to look at your rental, say they want it, and then never return. It's also common for them to say they want it, keep telling you want it, then change their mind at the last minute. 

    These people are playing games with you while they continue to look at other options. Your responsibility should be to yourself, not the applicant.

    If they express interest, I tell them they are welcome to apply but I will continue marketing it to others. If they apply and are approved, I let them know and give them 24 hours to put cash in my hand or I will continue marketing and offering it to others. Once I have cash in hand, then (and only then) will I take it off the market and consider them tenants. If they change their mind after that, the money is non-refundable and I put it back on the market.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    By the way, your last sentence is important:

    "I never explicitly said I was holding it for them, but I think I gave them that impression."

    This is a great point because Landlords have different procedures and these people may have the impression you were holding it for them. It's very important for you to set policies and then express those very clearly, which is why I recommend putting everything in writing with the applicant and/or tenant. It saves both parties a lot of time and stress.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    You are not obligated to anything beyond protecting yourself and your business. You do not mention screening at tis point. Until that is completed you have no commitment to anyone and can eliminate either of both at that time.

    If you are not screening you are not operating a business.

    0Reply
  • Shoshana Shulman
    OP
    Investor · efrat, israel · Member since 2014 · 93 posts · 20 votes
    8y

    Thank you everyone for your replies and helpful advice. IT's RENTED, and to really nice people. I just feel compassion for the other people who really, really wanted it. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free