New Lease Agreement Date - property is currently occupied

[Stephanie Gledhill]

I found a new renter for my property. I am giving increased rent $200/mo back to current tenant for finding future renter. Current lease is month to month. Renter is looking for home out of state and gave me a move out date of 4/15-5/15. New renter said they can move in when current tenant vacated the property. Question is: when would the new lease start date be? I want to take deposit and get a signed lease now as new renter wants to secure this place also?

Do I just pick a date of 5/15 and tell current tenant they must move by this date? I want to make this work for all. New renter will put their place up for sale also. Lots of moving parts.

Thank you for your advice (first time self manager). You guys are awesome.

[Nathan Gesner]

I would guess you're rent rates are low if people are chomping at the bit to sign a contract four months in advance. Maybe I'm wrong.

The new tenant should pay a holding fee (not a deposit) equal to one month of rent. I would include a simple one-paragraph agreement that says they agree to sign the lease and rent the property for one year at $XXXX per month with a lease start date of [DATE]. If they fail to sign the lease or start renting on that date, the fee is non-refundable and the property goes back on the market. If they successfully sign the lease and start renting, then the fee will be applied to their security deposit.

Personally, I would have waited until the current tenant gave notice, then I would find a renter on the open market. It's very competitive and prices are going up, particularly as we move away from winter.