Provide lease now or when full payment is made?

Question

I just recently closed on another house that has a MIL apartment. I've rented the MIL (2 days after closing). The tenant can't move in until April 1st, but I agreed to hold the apartment for him for a $400 deposit. I gave him a receipt for said deposit, even though I usually document this on the lease. He's eager to sign a lease, though he doesn't have first months rent just yet (his income is good, but he drives a BMW). I could just tell him I will provide a lease when first months payment is ready. Or is there anything wrong with just signing a lease now? The lease I use is a state provided once that has a grid at the bottom to document payments due, payments made, and payments still receivable and by which date. I could just fill it out and document that he needs to pay first months rent still.

Account Closed · Answer

Jack B.- get a grip, man  You are wound a little too tight for this easy going message board.  BTW- the answer to your question... I do it all the time.  They are a little more comfortable coughing up all that cash to a complete stranger when they have a lease in hand.  They don't get the keys until the full balance is paid (in CASH, not a check that can bounce 10 days later AFTER they have legal possession), and not until they have established all utilities in their name.

Chris K. · Answer

You should have held the apartment for a "$400 holding fee". Deposit means they can get it back, fee you get to keep if they back out. That $400 could be applied to the security deposit once they sign the lease.

I personally wouldn't sign any lease without all monies due being paid. After first month and security are paid in full then we can sign the lease and hand over keys. If they have a signed lease they could climb thru a window and there may not be much you could do about it.

Nathan Gesner · Answer

Out of curiosity, what does this apartment rent for? Why are you willing to give up 45 days worth of rent for this guy with just a deposit of $400?

I do not hold a unit vacant for more than two weeks. They can rent it early or take their chances that it will still be available when he is ready. Based on what you have shared, I think you are making a bad decision.

Chris K. · Answer

Cool, sounds like you already had all your bases covered. Not sure why you even asked the question in the first place....

Jack B. · Answer

That's the way it's spelled out in the receipt, he loses the $400 if he backs out but it turns into the deposit if he moves in.

His lease would be dated April 1, so yes, there would be something I can do about it, up to and including use of force or calling 911 to have a trespasser removed. Breaking and entering is a crime, especially since his lease would not be effective for some time.

Jack B. · Answer

Ummm...I find it hilarious someone who lacks basic reading comprehension and critical thinking would advise someone to be smart...Not sure what the point of your rambling posts about depression are about, but you've detracted from the thread enough, please stop before I report you.

Jack B. · Answer

Sigh, one in every crowd. He makes 6 times rent and has an 800 credit score. No one said that "he has a nice car which means he is financially stable".  I said he has a good income (he has a nice car) to imply that he has a lot of income but he is a spender so money is tight for him between apartments.

Focus on the topic, not your own interpretation and pointing out the obvious things that no one is asking about...It is not the point of the thread, and no one said he is fin stable because of his car, the point was he is not flush with savings because he is a spender, so money is tight between apartments for him.

Otherwise it's just a waste of time reading your response...because it's an answer to a question NOBODY asked. I hate to be blunt, but it is becoming very tiresome to wade through responses like yours in every thread. If I post a thread asking for scientific evidence of X instead of conjecture in big bold letters, I will get 10 people who post exactly what I DIDN'T ask for.

Provide lease now or when full payment is made?

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