All Forum Posts by: Jorge Caceres

Here's an excerpt from my screening email script that spells it out.  I do exactly what @Joe Splitrock does:

If you decide that the apartment would meet your needs and wish to proceed with the application process, a “contract to hold” binder equal to a month’s rent would need to be collected at that time. This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this becomes the security deposit. At the lease signing, you will need to put down another $x (not including pet fees), which will serve as your first month’s rent. So, the total base move-in costs would be $x, all paid prior to lease signing.

As a matter of information, the binder payment must be in cash or a personal check from your own account that is drawn on a local bank. Third party checks are not accepted. I’ll provide you with a receipt in either case.

If they pay with personal check, I have them make it out to me personally and I walk it in to the branch and receive cash.  I DO NOT deposit the check!

Also, if they pay the balance of their move-in fees with a check at the lease signing, I DO NOT sign and execute the lease until after I walk the check in to get the cash.  At that point, I will sign the lease, scan it, and send them a signed copy in preparation for move-in.

@Jorge Caceres  what does the lease say? Does it say it is valid on signing and deposit?  It should mention the security deposit somewhere. Find the legal language around that quote it to them and let them know that without the deposit in the next 24 hours you will move on to other candidates.   If they can't come up with it now they likely won't come up with it in 10 days and you should not let them move in without the deposit and first months rent in a form that they can't cancel.  Not everyone has poor intentions with this some people are inexperienced and waiting for you to lead the way. Be clear and concise and follow your lease.  

I once had a student apply and was posting on facebook he got this great rental. I quickly let the prospective tenants know until lease signing and deposit it isn't a done deal. Those deposits came in quick.

You get the deposit when they sign the lease and you turn over the keys.  You kind of did this a bit backwards by having them sign the lease so far in advance of move-in.  If anything is done early it is the deposit collection, or a partial deposit collection, not the lease signing.  That is on move-in day.  Upfront you should collect (if your state allows) a non refundable deposit and you give them a receipt that says as such.  Assuming they move in you convert it to go to the SD, your rec. should tell them that too.  

This way, if they bail, you have a non refundable deposit.  If they give you more than your non refundable deposit your rec should spell it all out.  How much is refundable and non.  

@Jorge Caceres

@Joe Splitrock said it!

I approved a new tenant yesterday, he immediately sent me $500 via cashapp, balance will be paid when we sign the lease on Sunday. Never ever sign a lease or give keys without receiving full monies owed in certified funds

@Jorge Caceres

This would be something you want to spell out when you are speaking to potential tenants. Normally our tenants will pay the application fee and a small refundable deposit; about $50 when they apply that is refunded if they are approved and decline the apartment. Upon move in, they will pay the security deposit and 1st month's rent with certified funds. They will get keys once we receive that and confirm utilities have been changed into their name. If you want to receive part of that upfront, you need to let the tenant know this before they apply.