It depends on where you are. As soon as the lease is signed, I have them pay me the deposit. I make it clear it is a non-refundable deposit that will be converted to their security deposit when they move in. If they don't move in, I keep the full amount. Where I am, we don't do last month's rent up front (it is paid as normal on the 1st of the last month). They also need to show utilities are in their name (if applicable) and pay first month's rent.
Security deposits also vary. Where one of my rentals is, the max is 1/2 a month's rent, where the other is, they can do a full month's rent.
Yes, it's common, and I'd treat anything less than full cleared funds before keys as the exception, not the rule.
When I ran the office for a portfolio of about 90 units, the move-in rule was simple: no keys until first month and deposit were in the account and cleared. We required certified funds or a cleared electronic payment for move-in money because we got burned early. One tenant handed us a personal check on a Friday afternoon and we let him move in that weekend. He seemed fine, the unit had sat empty for three weeks, and we wanted it filled. The check bounced Monday. Now we had someone living in the unit, no money, and instead of a simple "no" we were starting an eviction over about $3,000. That took almost two months and cost more than the vacancy would have. After that, nobody got keys on a promise, no matter how good the story sounded.
On last month's rent up front: we didn't require it, but I never argued with an owner who did, as long as the lease spells out exactly what it applies to. The disputes I saw were almost never about collecting it. They were about what it covered at move-out. If you collect it, write down whether it can go toward damage or unpaid utilities or only toward rent. That one sentence saves you the argument later.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
2h
What do your local landlord/tenant laws allow you to charge? Whatever IS allowed, yes, you collect in good funds prior to giving any access or turning over keys. You also need to perform and document your move in inspection. This should also be done prior to turning over keys, otherwise you lose control. You have no proof of what has occurred between key turnover and any list of issues or defects raised by the tenant prior to the end of whatever period you allow them to do so. Without mutual agreement and signatures, it becomes "he said, she said".