Hello,
I am renting my upper unit of my duplex. They are starting the lease in June. The guy is a local TV host. His fiancé, their kids ( 1 kid each from previous relationships) and he are moving in. They asked me to give keys 2 weeks in advance to help them move their stuff.
They said that they liked my place so they are moving even though they both will have separate another 30 days rental lease at their current residences. i.e. they don’t want me chose other applicants who are ready to move in by June. This came as a surprise to me. I agreed to give the keys for 2 weekends prior to them moving in. Now, they requested me to give them the keys 2 weeks before and let them keep it so they can move their stuff. They seem like nice people but I don’t want to set the wrong tone that they can just break rules.
Also, I am wondering about the things that they keep before the renters’ insurance commences. They promised that they don’t plan on living there before the lease starts.
What are some of the issues of giving the keys in this situation?
Any suggestions are greatly appreciated.
Tenants get keys when we sign the lease and they hand over the money. Period. Money in cash or money order for the first month and full deposit. Period.
I will give tenants a few days free if a property is vacant. But its May 8 and they want to move in June 1 (I think you're saying.) I would tell them "You're approved, but the first person to sign a lease and pay gets the property." If they were willing to start a lease on May 15, I might be willing to give them the next week for free. Otherwise, I would continue to market the property. In my market, I'd be pretty confident I could get someone in there in less than three weeks. If I did find another acceptable applicant and they were willing to move in sooner, I would go back to this first applicant and tell them "I have someone willing to move in on (say) the 15th, but I approved you first, do you want to move in on that date?" If no, the new applicant gets it. If its still available when they actually want to pay, they can have it.
I have, on ocassion, agreed to hold a property. Not for three weeks, but maybe for a week to 10 days. I'll only do that if they pay me a non-refundable holding deposit equal to the security deposit. If your market is on the slow side, I might agree to that. They pay now, and when we get around to signing a lease, that becomes the deposit. There's a date on that agreement, and if they don't sign by that date, I keep the deposit. In a case like this, I might make that date about a week before the first and I would continue to take calls and keep phone numbers. If they don't sign, call those people back.
Even if you start the lease on May 15th, you want a full month's rent. Nothing wrong with making the lease run from the 15th to the 14th of the next month. But if they want is 1st to last, then on June 1 they would owe you half a months rent. But ALWAYS a full months rent to move in.
Lokesh W. If I was in your situation, I would prorate the lease for 2 weeks before and have them sign and once all deposits & prorated rent are submitted, the renters insurance kicks in, then I would allow them to start moving in their things. Seems like they will be using your property as free storage. With my tenants I have allowed them to move things in a day or so before..but not an entire 2 weeks. I really wouldn't want to be responsible for the tenants personal belongings in the event that something happens with no documents signed, who would be legally responsible for it?
I would only give keys at start of lease with full payment of security and first month's rent (+ extra days prorated if they want lease to start early), proof that all utilities have been changed over to their name, and proof of renters' insurance. If they want the convenience of taking 2 weeks to transition, they should pay for it, not you. It sounds like you've already verbally agreed to storage a few weekends before, so at least protect yourself by collecting all security and first month's rent, signing the lease, and have them sign that you are not responsible for any of their personal belongings before you hand over any key. Not sure what's to stop them from just making a copy of it once you give it to them, so I don't understand you giving them keys for a weekend, taking it back, etc., as once their belongings are in there, they may want to access them, and I see that being another issue. I'm no lawyer, so no legal advice, but I would be nervous of the liability of having someone's belongings in my home or their having a key to my property before their lease began.
Tenants get keys when we sign the lease and they hand over the money. Period. Money in cash or money order for the first month and full deposit. Period.
I will give tenants a few days free if a property is vacant. But its May 8 and they want to move in June 1 (I think you're saying.) I would tell them "You're approved, but the first person to sign a lease and pay gets the property." If they were willing to start a lease on May 15, I might be willing to give them the next week for free. Otherwise, I would continue to market the property. In my market, I'd be pretty confident I could get someone in there in less than three weeks. If I did find another acceptable applicant and they were willing to move in sooner, I would go back to this first applicant and tell them "I have someone willing to move in on (say) the 15th, but I approved you first, do you want to move in on that date?" If no, the new applicant gets it. If its still available when they actually want to pay, they can have it.
I have, on ocassion, agreed to hold a property. Not for three weeks, but maybe for a week to 10 days. I'll only do that if they pay me a non-refundable holding deposit equal to the security deposit. If your market is on the slow side, I might agree to that. They pay now, and when we get around to signing a lease, that becomes the deposit. There's a date on that agreement, and if they don't sign by that date, I keep the deposit. In a case like this, I might make that date about a week before the first and I would continue to take calls and keep phone numbers. If they don't sign, call those people back.
Even if you start the lease on May 15th, you want a full month's rent. Nothing wrong with making the lease run from the 15th to the 14th of the next month. But if they want is 1st to last, then on June 1 they would owe you half a months rent. But ALWAYS a full months rent to move in.
Thanks for your replies.
I have other qualified renters. Since I am sharing my living space (duplex with the tenant), I was looking for something more than just a qualified renter. Things clicked only with 2 of the applicants. One of them is this couple that I am working with. The other couple cannot move in before July 1st.
If I were not sharing my living space, I would have chosen any applicant who is qualified based on credit/ background checks, references etc. Anyways, I will let them know that they have to pay prorated rent.
Just for future reference Lokesh, I always pre-empt even getting into further discussion of a new tenant getting in earlier by having ready the response 'sorry, I won't be done getting the apartment ready by then.' Because this request will come up from some tenants.
Dan C., I actually told my visitors at my showing that my property would be available on May 15th, which meant that my property will be available by then.
Jon Holdman
They have given me a check for security deposit, which is the amount of first month's rent. This is not for holding the property. I could ask for $500 deposit for holding the property. I think I will talk to them once more about paying me proprated on the number of days before June 1st and continue marketing the property.
I will accept the deposit to hold the rental for up to a month and if they back out, the deposit is non-refundable. If they move in, the deposit converts to a typical deposit. I am picky about who I rent to, so once I approve a tenant, I am willing to forgoe a few weeks rent to hold the unit so they can finish out there lease where ever they are moving from or whatever other reason I deam legitimate. I have no problem helping someone honor their existing agreements and still rent from me. A good sign of a good tenant is one who does not want to break their current lease. Just because I am willing to do this doesn't mean it is necessary and that I am constantly throwing away up to a month of rent, either. I consider it on a case by case basis. If I can get good tenants that will stay for a year or two and not tear up the property, it was money well spent in lost rents.
They don't get keys until fist month (or the prorated amount of the first month if it is more than three weeks) is in my hand.
Don't worry about making excuses. If they don't understand they have to pay for the time they live there, they probably don't need to be living there...
NO CHECKS! Repeat after me - NO CHECKS! Or, go to the bank with them and have them cash the check and give you the cash. Checks bounce. If the check bounces after they sign the lease, you're stuck evicting a tenant without getting any money at all.
If I do a hold deposit, its non-refundable. I wouldn't do it for three weeks, unless I was sure I couldn't find any other tenant. But if you do it, that money turns into the deposit if they sign the lease and goes into your pocket if they don't. My hold deposit form says that in big letters and repeats it several times.
Jon Holdman
They have given me a check for security deposit, which is the amount of first month's rent. This is not for holding the property. I could ask for $500 deposit for holding the property. ...
This is what got Jon Holdman yelling at you ...
If they have good credit, then you can take checks from them for the second month's rent and any future rents. But the first month's rent and security deposit - those always have to be "good" funds, whether cash or money order.
2 weeks is a long time. I wouldn't do it.
What if the place gets broken into? Does their insurance cover it if they don't live there? Does yours?
With the guy a local TV host, he might be more trustworthy. But, if something happens, his PR ability might be less than ideal for you.
Even if you said it was ready for a May 15 move-in, you can still change to "it's not ready yet until June 1 since I was expecting a June 1 move in and have some finishing to do." Or something.
Since you've already told them you would,.... at least get security deposit and first month's rent. Make the deposit non-refundable if they don't move in.
they're hoping to score two weeks of free rent. after all, he is the local TV man, he's used to getting free stuff from the public.
reminded me of Donald Trump who always goes to the top restaurants but never gets to pay for his meals, cause every owner thinks they gotta treat a billionaire with free food.
This is a $2000 a month rental (which is somewhat high end in Milwaukee) so I took a chance with the check – very likely, it is credible. Other visitors were also professionals like doctors, engineers, college professors etc. This place is closer to the lake and lake park.
I told my future tenants that my lawyer is not happy with me allowing tenants taking they keys 2 weeks before the lease start. I asked them to pay prorated rent for the 14 days. They thought about it and did not want to pay prorated rent. Here’s what happened:
- They signed the lease starting June 1.
- I deposited their check. It is good.
- They want to come in this weekend to take measurements of the rooms to plan their arrangements of their furniture.
- On 1 of the weekends, they will be here to move some inexpensive items for about 3 – 4 hours.
- 2 days before the lease start they will take the keys.
I think this is fair considering that I had verbally agreed initially to give the keys 2 weeks; again, I want to mention that this came as a surprise request on the phone. The TV host talks mostly about the powerful people he knows like lawyers, business owners, owners of major restaurants, bars/ nightclubs, celebrities etc. His fiancé is more eager to move in settling down. I spoke about all these changes in key situation with her. She was easy to talk to about these things...
Anyways, they seem like nice people maybe really nice people. I like them and that's why I decided to accept their application. It is just that we don’t each other and hence the anxiety on my part. I just want to set the right tone in terms of tenant-landlord relationship.
Many of these same professionals can be going through money issues of their own - like foreclosures, divorce, bankruptcy, medical collections, etc. All that means is that if they stiff you, it's for a bigger dollar amount. Don't discriminate in favor of some group - higher income earners in this case - in your housing practices.
Did you take a check from them in a situation where you would not have done so with a lower income tenant? Seems you may have ...
WORD!
Dan C.,
I noticed that you live in Milwaukee, WI. Are you a member of any Milwaukee REIAs? I live in Milwaukee but work in Madison as a computer consultant. Since I stay in Madison during the week, I became a member of Madison REIA. I will send a colleague request.
haha... who still uses that?? do they still use that out there in TX ("word!") or is that more from you than a local thing? I had flash backs of the 90's... boyz 2 men, color me badd, c&c music factory, etc...
WORD UP! indeed, haha! sorry... just had to ask.
*******
AHEM... ok...
so what jon asked and what appeared to take place... that sounds like you chose by disciminately... also, just because the word is loaded and has negative connotation doesn't mean that it's a bad thing. so you had a personal preference that wasn't based on financials or racial issues... maybe more along the lines of trust and personal relationship.
haha... who still uses that?? do they still use that out there in TX ("word!") or is that more from you than a local thing?
Kelvin K.
Just me baby ... just me.
A lot of really good information here, but I'd like to add a comment. I occasionally lease properties for clients and never turn over the keys till the day the lease begins. Maybe I'm just paranoid but I can't quite shake the vision of new tenants moving in early and accidently leaving the water running in the sink or causing some other catastrophic event and some attorney asking, "So, Mr. Walter, exactly what were you thinking when you let the tenant take possession of the property prior to the lease date?".
Oh, and I'm not bashful about giving that as the reason to the prospective tenant.
I have a simple canned response to people like this
"It's my policy. Lots of things can go wrong, and I need to cover my ***."
They usually understand it's all business, not personal.
I don't care if they know the QUEEN.
Name dropping doesn't make them a good tenant. Seriously.
I had a prospective tenant who wanted to move in the same day. I told them I had a short application they would need to fill out. They started name dropping. My response: "Oh, I don't need personal references... just a rental application and court check. Fill out the lower half of this page..." Needless to say, they never filled out the application. No app = no rental. I don't care who they know, or say they know.
The guy being a local TV host is a good thing and a bad thing. If things go south, they could go south more quickly (he has free PR). If things go well,... they go well. The guy has a reputation of his own to uphold. He likely wouldn't want to get evicted. "Local TV Host Gets Evicted" doesn't make good headlines for him. Same thing goes if this goes south for you. "Landlord Slow to Make Repairs" or whatever else. I hope you screened him well.