New potential tenant wants to sign lease early

Member since 2018 · 5 posts · 0 votes

Good evening,

I have a tenant who’ll be moving out at the end of June. I have someone lined up already for the property. They’ve already given me the application and I’m in the process of screening them. If all checks out she’s ready to sign the lease now. What monies should I collect at lease signing since she’s signing so early? The property is in Georgia.

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Wesley W.

Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes

I do not sign any lease until ALL move-in costs (first,last,security,pet fee,etc.) are paid in full with guaranteed funds. If that requirement has been satisfied, I would sign the lease regardless of how far ahead the move-in date was.

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Roland Park
Check with your state law, but I require 50% of the first months rent for a down payment to hold the unit. I agree with you they must pass all the screening requirements first. Upon move in they will pay the balance of rent plus security deposit provided via money order and or cashiers check before keys are handed over to them.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
You could do a small, non-fundable deposit to hold the unit. Then ask for the security deposit closer to when she will move in.
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Account Closed
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
6y
I required them to pay the security deposit if they were ready to sign the lease early. Then, I wanted their first month's rent by the time I gave them the keys.

I liked it when tenants wanted to sign early. As a tenant now, I really hate it when a landlord won't let me sign early, and insist on only signing the lease on move-in day. It's a huge pain. There is a lot of insecurity there, trusting that you didn't just give notice where you are living, without ending up without somewhere to live, and putting all your stuff into a moving van, and then paying movers to stand around outside while your new property manager goes over every single paragraph in your new lease and addendum, ad infinitum. Stressful and expensive.

As a manager, I told applicants that I would keep showing until I got a signed rental agreement and the deposit money. That also makes sure they really have the money, too.
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Pro rate the rent and get your security , move em right in if everything checks out
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Wesley W.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
6y
I do not sign any lease until ALL move-in costs (first,last,security,pet fee,etc.) are paid in full with guaranteed funds. If that requirement has been satisfied, I would sign the lease regardless of how far ahead the move-in date was.
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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
6y
Ideally first, last, and security.
Definitely get all that before they get keys.
I would get at least 1/3 of it before/at signing.
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Stephen J DavisBusiness Member
Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
6y
In TX I collect the deposit and the credit check fee at application. I collect the first months rent right before they get the keys.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
Collect a holding deposit. It's equal to the security deposit but called a "holding deposit" until the lease starts, then it converts to a security deposit. If they change their mind and fail to pay rent and take over on the lease start date, the holding deposit is forfeited and you put it back on the market.
Holding deposits, security deposits, and first month of rent should always be paid in certified funds (money order, cashiers check) and never a personal check. You don't want to hold the property and then find out the check bounces a week later.
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