Sent a lease out and applicant disappeared and never sign...
Rental Property Investor · Bakersfield CA/ La, CA · Member since 2017 · 8 posts · 3 votes
Sent a lease out and applicant disappeared and never sign...
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5yI will add to what @Jon Crosby said: the contract is binding once it's been signed AND returned to you. She can't sign it and keep it; she has to sign it and return it to you to verify it's been signed and agreed to.
You're safe. If you sent it via email, send her an email that simply says she has been unresponsive so you are rescinding the offer and renting the unit to someone else. If you have a phone number, I would also send her a text. Then move on.
It is very common for people to indicate they want a rental only to flake out somewhere along the way. My process:
1. Application fee is non-refundable, for any reason. If they apply and then change their mind two hours later, I still don't refund the application fee.
2. I don't process the application until it is complete. That includes a copy of their picture ID, proof of income, application fee paid, etc. If there are multiple applicants, I don't process any of them until ALL of them have submitted everything I need.
3. First come, first served. If Joe applies on Monday and I'm still waiting for his proof of income, Sandy can provide me with a complete application on Wednesday and I will move her to the front of the line. If Sandy is approved but says she wants to continue looking around, Joe could finish his application on Friday and then I'll offer the rental to him.
4. Once someone says they want to rental, I give them 24 hours to pay the deposit in full and I only accept certified funds (cash, money order, or cashier check). IF they fail to pay the deposit, I offer it to the next approved applicant or continue to market it. I don't take payments. I don't hold it for three days while they wait for their next paycheck. They can either take it now or they can take their chances it will still be available when they have the funds ready. At the same time, I send them the lease to review and sign. I do not wait until the day of occupancy to sign the agreement because there are some terms that apply even prior to occupancy, like how to handle the deposit.
5. If they fail to move in, they forfeit the deposit. A lot of people call and say they've found something better, or they decided to stay in Minnesota, or they don't like the size of the bedrooms, or whatever. If they fail to follow through with our agreement, they forfeit the deposit entirely to compensate me for the trouble. I send them notification of termination and forfeiture, then we put it back on the market and start again.
I hope this is helpful.
The DIY Landlord Book4.7248 Reviews
7 Replies
- Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes5y
@Vikram Deol. I'm NOT an attorney so take this as my 2 cents and you should seek professional counsel by a local attorney.
As far as I know a dual signature contract is only legally binding when both parties sign it. Now that doesn't mean they couldn't take you to court and make a judge rule on if the contract is still in effect via arguments to whatever claim they might have but that would likely be very expensive for them and not worth it for a rental agreement. As long as you still have the keys I believe you are still in control of the situation.
Next time, don't sign until they do though or even better, let a property management company handle it for you until you get your feet wet.
Best of luck!
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes5y
You know the mistake you made signing the lease, so I won't pile on in regards to that. Moving forward though, always get some sort of deposit before you even take the time to put together the lease docs. This hooks them in and greatly reduces the chances of something like this happening.
Just a thought, but do you have a phone number for her? May be worth trying to call instead of just emailing. Also, if you use a legit e-sign program (Docusign, etc) you can void the signing of the doc at any time which would help in this situation also.
- 5yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
You should have another way to contact her. If not, send another document (snail mail and email) saying it has been X days and you have not received the signed lease or the deposit, so the lease is null and void. Then move on. She doesn't have the keys to the place and you don't have any money from her.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes5y
I will add to what @Jon Crosby said: the contract is binding once it's been signed AND returned to you. She can't sign it and keep it; she has to sign it and return it to you to verify it's been signed and agreed to.
You're safe. If you sent it via email, send her an email that simply says she has been unresponsive so you are rescinding the offer and renting the unit to someone else. If you have a phone number, I would also send her a text. Then move on.
It is very common for people to indicate they want a rental only to flake out somewhere along the way. My process:
1. Application fee is non-refundable, for any reason. If they apply and then change their mind two hours later, I still don't refund the application fee.
2. I don't process the application until it is complete. That includes a copy of their picture ID, proof of income, application fee paid, etc. If there are multiple applicants, I don't process any of them until ALL of them have submitted everything I need.
3. First come, first served. If Joe applies on Monday and I'm still waiting for his proof of income, Sandy can provide me with a complete application on Wednesday and I will move her to the front of the line. If Sandy is approved but says she wants to continue looking around, Joe could finish his application on Friday and then I'll offer the rental to him.
4. Once someone says they want to rental, I give them 24 hours to pay the deposit in full and I only accept certified funds (cash, money order, or cashier check). IF they fail to pay the deposit, I offer it to the next approved applicant or continue to market it. I don't take payments. I don't hold it for three days while they wait for their next paycheck. They can either take it now or they can take their chances it will still be available when they have the funds ready. At the same time, I send them the lease to review and sign. I do not wait until the day of occupancy to sign the agreement because there are some terms that apply even prior to occupancy, like how to handle the deposit.
5. If they fail to move in, they forfeit the deposit. A lot of people call and say they've found something better, or they decided to stay in Minnesota, or they don't like the size of the bedrooms, or whatever. If they fail to follow through with our agreement, they forfeit the deposit entirely to compensate me for the trouble. I send them notification of termination and forfeiture, then we put it back on the market and start again.
I hope this is helpful.
The DIY Landlord Book4.7248 Reviews - 5yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
We NEVER send a lease for signature until we have a Holding Fee from an applicant. Then we know they are serious.
FYI - we have a Holding Fee Agreement form that has a deadline date on it.
Logical Property Management4.9458 Reviews - Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes5y
I sent a lease out which I had signed and the tenant went MIA on me after I emailed it to her.
Happens, these guys apply at a bunch of places and pick the best and ignore the rest.
If she doesn't get you the sec dep by lease start then throw it away.
- Rental Property Investor · Bakersfield CA/ La, CA · Member since 2017 · 8 posts · 3 votes5y
Thank you all very much!
Dang y'all are amazing! being an ex realtor, I was stunned when I realized I sent the signed contract over without any proof from her. I was very excited and was headed out of town. I guess, I have never flaekd on a rental before and didn't think people did that. With that being said...
1. I emailed her and told her it was cacneled
2. texted her it was canceled
3. left her a vm saying it was canceled.
@Nathan Gesneradopting your guidelines and will be importing those to the listings. That way they ahve everythign they need from the gate and i don't have to go back and forth with them.
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