When to collect the security deposit and 1st months rent

Question

Hi, I'm new to this forum and also new to real estate. I'm renting my home to 3 young professionals in Washington, DC. They each signed the lease dated for April 15th with a Saturday, April 16th move in date. When should I collect both the security deposit, which is equal to the monthly rent and 1st months rent?

Kyle J. · Answer

I also usually collect these things at lease signing. Definitely before you hand over the keys though.

Also, (you didn't ask but I'll mention it anyway) the initial move-in costs (i.e. 1st month's rent and sec deposit) should be paid in some form other than personal check. I allow it to be paid with cash, money order, or cashier's check.

Russell Brazil · Answer

I collect the deposit at lease signing, or after agreeing to rent to them to hold the unit for them, so that way if they change their mind you dont get totally screwed. I collect the rent on move in day.

Chris Wallace · Answer

I collect the security deposit and first month rent at lease signing, as this should be no problem for a serious prospect. For your situation as Roger mentioned make sure to collect BEFORE move-in just to make sure the funds clear your bank.

Horace Ward · Answer

Thanks for all your responses.

The lease was electronically signed on April 1st, however the tenants wanted an amendment to the lease. The amendment is for small items that should be completed upon move in on April 16th.

I will ask the tenants to have a money order for both the security deposit and 1st months rent upon completion on the work.

Horace Ward · Answer

Andrew

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Tim Blatt · Answer

I agree with Kedrick, I request the deposit and first month's rent when they sign the lease.

Andrew Nevins · Answer

@Horace Ward - Great question. We manage a few dozen properties in DC and require the security deposit and first month's rent at the time of lease signing. Fairly standard.

Roger Vi · Answer

I am from Washington State, not DC, but I don't think there are any differences preventing you from doing what I would do...

I would get some money for holding the place for them for 15 days, if they cancel and didn't have a non-refundable "HOLD" deposit, you just lost 15 days that could have been rented to someone else. The security deposit is a reasonable amount. If they move in on the 16th, it becomes their security deposit. If they don't you just keep it. Draft some sort of agreement or printout a template online that states these specific terms.

The rest of the money (1st month's rent) I would absolutely collect BEFORE the move in date, the sooner the better. I think it is reasonable to ask for it 72 hours before they get the key, but I've also had tenants ask to exchange first month's rent for the key on move in date. This will work out either way as long as you have a HOLD deposit equal to market rent (preferably more!).

Horace Ward · Answer

Correction

Hi, I'm new to this forum and also new to real estate. I'm renting my home to 3 young professionals in Washington, DC. They each signed the lease dated for April 1st with a Saturday, April 16th move in date. When should I collect both the security deposit, which is equal to the monthly rent and 1st months rent?

When to collect the security deposit and 1st months rent

When to collect the security deposit and 1st months rent

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