Deposit and first month's rent one month prior to move in?

Question

I'm renting out my second property, and have a qualified tenant that is ready to sign a lease.  They won't be moving in for a month.  Their lease will start in June.  I was planning to collect the security deposit when they sign the lease this week.  Should I also be collecting the first month's rent, or wait until just before they move in a month from now?  Thank you in advance!

Matt Ziegler · Answer

I would get the deposit now, and not give them keys until they pay first month rent in full. Just before they move in. Unless, they offer to pay rent in advance, then, smile and say thank you!

Nathan Gesner · Answer

I won't hold a property vacant for that long. You're willingly sacrificing an entire month of rent and utilities? Unless your market is really slow, you're usually better off holding out for  someone interested in moving in earlier.

My written, published policy is that I will hold a unit vacant for one week. After that, they have to start paying rent and utilities. I negotiate on that sometimes, but most people just accept it and start renting early.

Sandy Gabin · Answer

HI Kraig,

I just love reading everyone's opinion on this topic. I highly agree with everyone. I would say just the same. But let's look at the bright side, you were able to get someone who is qualified to rent out the unit. Congrats!!!

Dave Spooner · Answer

@Kraig Krueger Most landlords require their tenants to pay both their security deposit and their first month's rent at the time of lease signing. Your lease should specify this arrangement, since both of the above are required before handing over the keys to the tenants. I suggest you have them pay you both the deposit and the first month's rent on the day you sign the lease, instead of waiting for another month.

Account Closed · Answer

@Kraig Krueger

Honestly, I would of passed on them if they couldn't move in on May 1st (or atleast pay for May now). You're losing another 30+ days worth of rent by waiting until June.

Kraig Krueger · Answer

Thank you for all the responses.  It's great to learn from experienced people.

Shawn Ackerman · Answer

@Kraig Krueger Sounds like the tenant wants to lock up the house but not move in until June?  If that is the case, they need to pay May's rent amount as you can find a qualified tenant, if the unit is ready, to move in prior to June.  All the best.

John Teachout · Answer

We require a holding fee equal to the security deposit to lock in the property. We require first month's rent at lease signing and they get keys when they show proof the utilities have been transferred into their name. Usually the day before the 1st.

Deposit and first month's rent one month prior to move in?

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