What to do if they don’t pay

Question

What do you do if a tenant who hasn’t moved in yet and they haven’t paid the security deposit or rent yet? Do you have to turn over keys?

Kyle J. · Answer

I collect all money owed (first month’s rent, security deposit, etc) at the lease signing. If they don’t pay it then, we don’t sign the lease, and they don’t get the keys. In fact, I won’t even consider the property rented or stop advertising it for rent until that’s been done.

Lam N. · Answer

Never ever ever ever ever ever ever ever ever ever let them move in before security deposit and first month rent are paid. Take my word for it, if you let them in before these things are paid, they will eff you in the rear sideways.

I speak from experience. My butt still hurts.

Loren Clive · Answer

the contract is not binding without consideration, i.e. money. You owe them nothing with no money down

Julie Hartman · Answer

Any written policy should also include a clear timeline of when funds are due and how long you will hold a unit. Our policy is 3 days and if funds aren't paid, the property goes back on the market. I would not sign the lease or send them a copy until you get the funds.

Greg M. · Answer

You need to have it in your lease that the lease is not in-force until certain requirement are met. I require signed lease, proof of renters insurance, and cleared funds for first months rent, any prorated months rent, and security deposit before lease becomes in-force.

Jaron Walling · Answer

If they signed a lease and haven't paid anything are they fulfilling the contractual agreement?

Michael Plante · Answer

As said above a few times

all happen at the same time   Signing the lease, payment of all monies owned and keys

Matthew Irish-Jones · Answer

@Christopher Bell nothing is validated until you get payment.  This should be made clear in your lease.

Signing the lease and receiving payment should be done at the same time.

Julie Hartman · Answer

@Christopher Bell Did you tell them to pay the deposit at lease signing? If not, maybe they didn't understand that something is due before key turnover. Many of these issues can be cleared up with communication. I would let them know they need to pay the deposit in certified funds now and the rest at move-in (in certified funds). If they can't do that, then I would not hand over keys. I would also make sure you have a clear written policy about how these things are handled so there is no confusion. Everything I mention is also predicated on what your state laws and lease agreement say about such things.

Christopher Bell · Answer

@Jaron Walling I would say no.

What to do if they don’t pay

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