Do you charge a deposit when signing a lease?

[Matt Daley]

First tenant turnover I am having at a property where I secured the tenant this far in advance. I feel like I should get some kind of deposit at the signing of the lease but understand I should not accept the First Last & Security yet. Do people typically ask for the 1st month (or security deposit, call it what you will) at lease signing? Rent is $2500 a month and starts 9/1. Lease signing will take place 7/8.... Or is a smaller amount exptected? I want to make sure I have something as a non-refundable deposit that will go towards the rent and want to write it in the lease. Curious what other experiences are right now.

Thanks in advance!

[Nathan Strahan]

When it comes to securing a tenant far in advance, it's not uncommon for landlords to request a deposit at the signing of the lease to solidify the tenant's commitment.

As for the amount, it varies depending on local rental market practices and individual landlord preferences. Some landlords may ask for a full month's rent as a deposit, while others may ask for a smaller amount. Generally, asking for one month's rent as a deposit is a reasonable practice.

To ensure clarity and avoid any misunderstandings, it's essential to clearly outline the terms of the deposit in the lease agreement. Specify that the deposit is non-refundable, will be applied towards the first month's rent, and include any conditions or circumstances under which the deposit may be forfeited.

Remember to familiarize yourself with the specific laws and regulations regarding rental deposits in your jurisdiction, as they can vary. It's always a good idea to consult with a local attorney or a real estate professional to ensure you're complying with the relevant laws and regulations.