All Forum Posts by: Robert Melcher

I can't speak for New York. 

In Texas, with an executed lease, the tenant would be responsible for rent until you have a new tenant in place.  You, on the other hand, are obligated to do your utmost to find a new tenant to mitigate their losses.

We would apply the deposit and collected rent against all expenses resulting from their default, including unpaid rents, fees, utilities, lawn care, etc.  If it is more than they owe, refund the rest. If not bill for the balance.

Sorry for hijacking your post!  Good luck, whichever way you choose!

Thanks Greg.  Our lease has specific verbiage (it is not the standard TAR lease) that requires all funds before access will be granted.  Their account must be current from the start in order to get the key.

But again, this is not the scenario.  As a property manager, to protect my client, we execute a lease and take the deposit before the house is removed from the market. The client is protected because we have an executed contract for rent and a non-performing tenant is subject to damages for the length of the time it takes to find a new tenant.  We do our best to mitigate for the tenant, as required, but a late summer lease that isn't occupied can put the vacancy in to the slow months, with a longer vacancy.  I believe it is a stronger position than a hold deposit.

@Greg H.Thanks for clarifying.  We don't do hold deposits as a matter of practice, for our own in-house processes.  However, use of the TAR form is of course restricted to Realtors. I don't have appropriate wording for May Lou's request for wording on the Hold Deposit Agreement.  It makes sense for a private owner/self manager.

Lastly, if the resident does not take possession within 5 days of the start of the lease after indicating they will not be, we post and mail an abandoned property notice with a 48 hour response window, then start the deposit accounting process.  Expenses (damages) will include paid commissions to Brokerages, including ours, for services, etc. since the execution of the lease is a fee-based service.

@Greg H. lets agree to disagree. This is what I do for a living. For others.

To clarify: why take a hold deposit and not execute a lease? If you take the house off the market and they don't come through you have no recourse against them and they can walk, and even sue for the deposit back.

If you have the deposit AND the executed lease, they have signed a credit contract for a year's rent.

That is your target.

@Mary lou L.  If you don't have an executed lease, the deposit is absolutely refundable.

We don't execute a lease until the full deposit is in hand. Once that happens, you take the house off the market.

Until then, they need to understand you are still looking for better terms, like an earlier move-in date.

Most of Texas is a seller's market for rentals at the moment. Don't surrender an advantage.

I would be polite and let them know you are targeting the 15th of June and will keep looking.  They may take it a month earlier.

Its a negotiation, not set in stone.  They want a concession, it will cost you money. Present your position and/or ask for an alternative.

You'd never pay list on a car, right? Don't presume this is their best and final offer.

Thanks Tyler!

Diminishing returns. When the drama exceeds the rewards, a polite letter indicating termination of services is all you need. Keep it professional.