Month Early Lease Signing- Security Deposit/Binder
Hello!
I have tenants lined up for my first apartment, but they won't be starting the lease until April 15th. I plan to collect first and security at lease signing and give the keys around date of possession (after proof of renters insurance, utilities check, final walk through etc.) but I don't know if this is the best option.
If I collect first and security at lease signing (in a few days) and they don't move in for any reason. I'll return the first months rent, but keep the security deposit since I will be loosing out on one months rent by ending advertising and showings between now and April 15th. I know that there is a 3 day period that tenants can back out, but is there any amount of time that I would have to allow them to get the security deposit back if they back out?
I'm in PA if that makes a difference.
Most Popular Reply
For tenants who sign more than about a week early, I do a ‘deposit to hold’. They pay the equivalent of one months rent to take it off the market. Then we sign the lease, give keys, and get first months rent on the day or move in (or the afternoon before).
The deposit to hold has language that the deposit transfers to the security deposit. Or if they don’t move in, it is forfeited.
I like it because if something happens before they move in, there’s no lease and I’m not dealing with the repercussions of a terminated lease. Worst case, I give them their deposit back and say goodbye.