Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
Hello
I have an applicant who wants to move in early February. I required a deposit to hold the home. Does anyone have a promissory letter example or can help me with wording they’ve used to insure its non refundable if he changes his mind and that I promise to not rent out to someone else. Thank you
Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
6y
@E.S. Burrell I think you'll have an issue if you call it a "deposit".
Maybe have them sign an "Option to Lease", include all the terms of your lease, and the start date.
Then say if he doesn't pay on date X, and take possession on date Y, the option is voided. Also, refer to the money that he pays you as "Non-Refundable Option Consideration" if he takes possession and begin to pay rent, his NROC is converted into deposit monies (and a lease is signed), if not, it is forfeit.
Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
6y
@E.S. Burrell I think you'll have an issue if you call it a "deposit".
Maybe have them sign an "Option to Lease", include all the terms of your lease, and the start date.
Then say if he doesn't pay on date X, and take possession on date Y, the option is voided. Also, refer to the money that he pays you as "Non-Refundable Option Consideration" if he takes possession and begin to pay rent, his NROC is converted into deposit monies (and a lease is signed), if not, it is forfeit.
@E.S. Burrell I think you'll have an issue if you call it a "deposit".
Maybe have them sign an "Option to Lease", include all the terms of your lease, and the start date.
Then say if he doesn't pay on date X, and take possession on date Y, the option is voided. Also, refer to the money that he pays you as "Non-Refundable Option Consideration" if he takes possession and begin to pay rent, his NROC is converted into deposit monies (and a lease is signed), if not, it is forfeit.
City: ______________________, State _________Zip_____________
This agreement is between_________________________________________, hereafter referred to as
“Prospective Tenant(s),” and ____________________________, hereafter referred to as “Landlord.”
Landlord acknowledges receipt of payment in the amount of $___________ from Prospective Tenant(s) as a non-refundable binder for the property listed above. Prospective Tenant(s) understands the binder reserves the property for the Prospective Tenant(s) until a Lease and all move-in requirements have been properly completed. The Lease and all move-in requirements must be completed before 5:00pm on _____________________. Prospective Tenant’s move-in date will be on or about ____________________.
Landlord’s Right of Rescission
Landlord has a right to rescind this agreement at any time between the date of its signing and the mutual signing by Landlord and Tenant(s) of a rental agreement offered by the Landlord. If Landlord exercises this Right, binder funds will be mailed within 7 days to Prospective Tenant(s) at the address listed on their application.
Move-In Requirements
First Month’s Rent must be paid in full in the amount of: $__________
Last Month’s Rent must be paid in full in the amount of: $__________
Security Deposit must be paid in full in the amount of: $__________
Other Move-in Fees must be paid in full in the amount of: $__________
All tenant paid utilities must be transferred into Prospective Tenant’s name.
Background checks done on all occupants aged 18 and above.
A Lease must be executed and signed by all parties.
When all move-in requirements have been met and Prospective Tenant(s) given possession of the property, the binder will be used as the last month’s rent. Prospective Tenant understands and agrees that no possession of the property will be granted until all move-in requirements have been completed.
Binder funds will be held in a trust account by the Landlord. If for any reason, the Prospective Tenant(s) fail to complete all move-in requirements by the above listed date, the Landlord will return the property to public offering and the entire binder sum will be forfeited to the Landlord for expenses including, but not limited to, lost rent, holding costs, advertising costs, and marketing costs.