How to take deposit for future tenant 2 months out?

How to take deposit for future tenant 2 months out?

Member since 2021 · 11 posts · 2 votes

Hi everyone,

I have a great potential for a tenant, however they wont be ready to move until 2 months from now. They are asking if it can be held for them. Whats a good strategy for this, obviously don’t want to lose 2 months of rental income. 

Im guessing take a non-refundable hold deposit for 2 months rent? 

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Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
2y

@Kenny Luna In my state that would be your only option. I’d be leery of a 2 month out date because usually that means the tenants are looking for a better place or a cheaper place. Not always but usually.

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  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Kenny Luna In my state that would be your only option. I’d be leery of a 2 month out date because usually that means the tenants are looking for a better place or a cheaper place. Not always but usually.

  • Member since 2021 · 11 posts · 2 votes
    2y
    Quote from @Alecia Loveless:

    @Kenny Luna In my state that would be your only option. I’d be leery of a 2 month out date because usually that means the tenants are looking for a better place or a cheaper place. Not always but usually.

    Thank you Alecia, agreed. 
  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    2y

    I would do it as a non-refundable holding deposit that transfers to a refundable security deposit.  Honestly, you will probably absorb about half of that vacancy lost revenue, it is unlikley they will be willing to bear two months cost.  Sometimes we offer a discounted rent to get them to take the keys sooner, benefits everyone.  But often when we take a holding deposit they don't end up moving in, so be prepared for it.

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    Tell them rent starts right away . No two month wait .  Its October , if they bail on you you are into winter , the worst time to find tenants 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Kenny Luna:

    Hi everyone,

    I have a great potential for a tenant, however they wont be ready to move until 2 months from now. They are asking if it can be held for them. Whats a good strategy for this, obviously don’t want to lose 2 months of rental income. 

    Im guessing take a non-refundable hold deposit for 2 months rent? 

    HOW??? Take it,, yes nonrefundable, ALSO PLEASE hire a PM co, learn then go on your own 
    All the best 
  • Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
    2y

    @Kenny Luna Surely there is someone else out there who doesn't need to wait 2 months. I would not hold anything unless they are willing to pay the two months of rent as a holding deposit, assuming your state allows that. Whenever we are asked this question, we tell the prospect that the lease starts on X date, if that doesn't work for them, they are welcome to check back to see if the unit is still available and go from there. We've never had to wait for anyone. 

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    2y

    I'd only be willing to hold for two weeks, or if I had a current tenant that wasn't moving out yet and was holding for two months from now when the current tenant left. So in your scenario I'd tell them we could start the lease Nov 1 ( a little more than two weeks from now) whether they move in now or in two months is their choice. I'd take a 'holding fee' now that is ~1K or so, and it will apply to their deposit on move in. At least if they back out you were compensated for waiting. 

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