Eviction without possession?

Question

I recently screened multiple applicants and offered a lease. The tenant signed the 1 year lease but did not have the money at the time of signing. Therefore we decided that the keys would be given to the tenant one the first months rent and deposit is paid, as per the lease. The tenant has not paid therefore doesn’t not have the keys. I am afraid the tenant will break into the rental and ‘squat’. What are my options?

John Teachout · Answer

The way we work it is we require a holding fee of an amount equal to the security deposit to take a property off the market. If the person hasn't paid that, then it's still for rent. We sign a contract when they have paid all the move in fees. (rent, pet fees, etc) and they get a contract then but don't get keys until they prove they've transferred the utilities into their name. If someone wants to sign a lease but doesn't have the move in funds, this is a red flag right from the get go as it demonstrates they have weak financial planning. These are the same tenants that won't have the rent because they took their dog to the vet, needed a car repair, etc.

Joe Splitrock · Answer

@Matthew Davis we never sign a lease as the first step. We sign a deposit to hold agreement. They are required to provide some type of deposit, which holds the property until lease signing. It may only be a portion of the actual deposit. The agreement says that money is non-refundable if they fail to sign the lease. Lease signing only occurs once they have deposit and first months rent in the form of cashiers check.

Please tell me that you didn't give them a copy of the signed lease or discuss the fact that they signed a lease in writing?

Unfortunately with a lease, they would not be squatting or breaking in. You gave them legal rights to the property by signing a lease.

Tracy Streich · Answer

We do not countersign the lease until we have funds.  Never send the lease signed.   Send it to the tenant to sign.   They sign first and you sign when you have money in hand.   We will not hold for more than 24 hours.   Too many good tenants out there right now.

Account Closed · Answer

I'd give them written notice (which can be done with text or email, but I'd also send a hard copy with proof of delivery to whatever address you have for them) that because they have breached your written agreement by not paying you as agreed, the lease agreement is void.  That way, if they break in, they are obviously trespassers and not tenants.

Matt M. · Answer

@Matthew Davis

I too take a deposit to hold if they are waiting until the 1st. No keys no lease without all money owed. No exceptions.

I once had a woman try to come to lease signing without all the money.. she said “you know where I work, it’s no worries”. I said yes I do, and I don’t care, no money no keys/lease. *She was a local section 8 case worker I’ve dealt with and this house was for her. I don’t think she lasted 8 months, one of the worst tenants we’ve had to date.

John Teachout · Answer

I'm also wondering about the fact you think these tenants would squat in the unit. Are they that sketchy? If so, why did you provide a lease to them. Weird scenario.

Account Closed · Answer

This is brilliant.

Adam Martin · Answer

To me the deposit is part of my screening process and a huge red flag if they don't have the money ready and a hard pass.  When selecting a tenant I let them know that once approved the first month and deposit is due immediately even if they aren't moving in for a few weeks.  I had 2 applicants that both passed my screening once and selected the first since they were both a tie but once they started trying to create a payment plan it was onto the next one who was concerned he needed 2 days to get it to me since it was Saturday and the bank was closed for certified checks.  They know they are moving and should have planned for it and the fact that they are short now is almost a guarantee they will be short again when life happens.  I rent in b+ areas sfh in the suburbs so this may not work everywhere but I'm going to need about $4k before I'm taking the house off the market.   The best deterrent for squatters is an occupied house so I would suggest getting it back on the market and rented quickly.

Brian Garlington · Answer

No deposit, no keys. I had a Section 8 prospective tenant try that on me last year. She knew 100% that she was not going to be allowed to move in without the deposit. This was in writing on the lease.

I met her at the unit. She was supposed to have the deposit with her. I signed her RFTA paperwork and she said she would go to the bank and get the deposit money. I told her, OK....go get the deposit money. Interestingly, her "car broke down" while she was on the way to the bank so she couldn't get the deposit money to me. .....but the next day I got a call from the Oakland Housing Authority saying that they received the RFTA paperwork (after the tenant's car had broke down) and they wanted to verify all was good regarding her and when we could schedule move in, etc. I told them, "No." Then I told them what happened and they said OK. I immediately sent a text message to the prospective tenand and let her know I would not be renting to her.....she responded back (thereby verifying she received the text message) with a(nother) sob story and I told her I was going with someone else. She mentioned something about "discrimination" and I cheerfully told her that the person I was going to rent to was also a Section 8 tenant that also had the exact same characteristics as her. The big exception is that they have the deposit.

James Mc Ree · Answer

Write future leases such that they are enforceable only after funds are paid within a defined period of time.

Eviction without possession?

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