Should I collect first month's rent in advance through Cozy?

4 Replies

I have tenants moving out 6/30, and I listed a couple units to be safe.  I'm nearly finished vetting renters for both units, and now I need to determine 1) I will for sure collect the security deposit at the lease signing, however should I also collect first months rent given that their lease won't start for 2.5 months? 2) One applicant lives on the other side of the country - would it be safe to collect these funds through Cozy given that there is plenty of time for the payments to clear?  If not then what method would be advised to obtain long distance funds?  

@Wade Penner, as long as you collect the deposit, and 1st month prior to the tenant moving in I don't see an issue w/ collecting via Cozy. 

I think we've done something similar w/o issue.

Since the applicant is apply and holding the property w/o immediate possession we add a clause that states the deposit is non-refundable until they move in. Just in case they decide not to move in for some reason it covers our cost of holding the property / taking it off the market. Once they move in, the deposit is refundable per the lease.

My policy is that I collect first month and security deposit if the lease is signed. If they want to give me security now and first month rent before move in, they can sign a deposit to hold agreement which forfeits the deposit if they don't move in. Then, we sign the lease when they provide the first months rent.

I also dont accept either of those through cozy. I only take certified funds before they move in.

Originally posted by @Andrew B. :

My policy is that I collect first month and security deposit if the lease is signed. If they want to give me security now and first month rent before move in, they can sign a deposit to hold agreement which forfeits the deposit if they don't move in. Then, we sign the lease when they provide the first months rent.

I also dont accept either of those through cozy. I only take certified funds before they move in.

Do you give them the option to sign now or later then?  I was thinking I may have better results if I make it a more standard path (i.e. either you sign holding agreement now, or lease now), rather than give them the option.

@Wade Penner

I tell them we are signing a lease and they need to provide certified funds for first month and deposit. If they said, “Lease doesn’t start for 2 months, why should I give you both now?” Then I would give them the offer.