Funds due before move in

Investor · Staten Island, NY · Member since 2016 · 32 posts · 23 votes

For a $1,600 per month 1 bedroom apartment, is it common to get first and last month rent plus one month security deposit before move in?

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
17h
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.
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Richard (Ryszard) Cieplechowicz
Member since 2026 · 38 posts · 10 votes
14h
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.
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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
13h
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".
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Richard (Ryszard) Cieplechowicz
Member since 2026 · 38 posts · 10 votes
10h
Quick clarification on my earlier post: the bounced-check story was meant as a hypothetical example of how this goes wrong, not a specific tenant. The practice point stands on its own - no keys until move-in money has cleared, because once a tenant has possession, a bounced payment turns a simple "no" into an eviction that usually costs more than the vacancy would have.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
5h
Be careful because many states consider "last month's rent" to be part of any security deposit limits.
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Ming Yi
Investor · San Francisco · Member since 2026 · 15 posts · 6 votes
3h
That is standard in most markets, and in New York it is basically the only structure available. The 2019 rent law caps the security deposit at one month, so first plus last plus one month security is exactly what landlords collect. A few practical notes. Spell out in the lease which payment is which, because it matters at move-out when you are deciding what to apply to damages versus unpaid rent. In New York you also cannot commingle the security deposit with your operating money, and you have to return it or send an itemized list within 14 days, which is tighter than most states. I collect everything as certified funds before keys change hands, no exceptions. If someone cannot come up with three months to move in, that tells you a lot about how month two is going to go.
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