First and last - when?

[Stephen E.]

I am leasing a unit at the moment and it causes me to think about leasing practices. I usually ask for first and last month's rent at lease signing, which can be anywhere from a week to a month before move in date. Some times people have told me they can't make first and last up front and I have instead just taken last month's rent up front and then first month as a money order on the day they move in, if the tenant looks good in other respects. But the unit I am leasing now appears to be in high demand and I have choice. So I have held to first and last at lease signing. My reasoning is that tenants who cannot put together $1,000 extra when they have to are tenants who are too financially weak and unstable to live in my property. What do you think? When do you require first and last? I regret that security deposits are not allowed in Ontario. You just have to hand over a unit and hope for the best, with Small Claims your best recourse if they wreck the place. Even more reason to want first and last up front in my view. Renting to men or women of straw makes no sense if you ever want to sue to recover damages.

[Roy N.]

@Stephen E.

Here we have security deposits, but they can be no greater than one month's rent, which is typically insufficient to cover anything but the mildest of damage.  Hence the reason we have semi-annual or quarterly inspections of our units and repair & invoice damages as we find them.

Our general practice is security deposit due at lease signing and first month's rent due before we hand-over the keys.   We frequently sign leases 2-3 months in advance of a unit becoming vacant, so do not collect the first month's rent until the month before they take possession.