What should I do?

Question

I put up my condo (currently my primary resident) for rent. I showed the condo to a few people who pass my pre-screening questionnaire.

1) A couple + a dog who move from the next town want the condo starting on July 1. They provided all info that I needed along with background / credit check from mySmartMove.

2) A couple with 2 small children - international student - who want to the place for August - willing to sign the 2 years lease

3) A retired couple + a dog who want to move by June 1 but looking for a house more than a condo

So I pick # 1 as the potential tenant. So after a few emails back and forth, I told # 1 that I would prefer to sign the lease for June 1, 2016 - June 1, 2017. I can give them 1/2 month of in June. They said that would be fine. I sent them a lease to look over. I told them that upon signing for the lease, I need 2 months deposit + first month rent. They reply back saying that they would be more comfortable with 1 month security deposit in July, then live in the condo for a month to feel how things are especially the appliances, plumping etc .. then provide another security in August.

The reason I want two months deposit because they have a dog. Wouldn't they know this better because they are also landlord too? Can I cancel on them legally and move on?

This is my first time trying to rent this out on my own. Any inputs are appreciated

Thanks

-Chi

Andreas W. · Answer

@Brandon Marling

Better be careful with the wording. A deposit is not a fee. A deposit is to be returned at the end of the business relationship or used for something else that is specified in the lease. A fee is a payment for a service.

Steven Woon · Answer

BTW, my pet deposit is always refundable after accounting for any cost to fix damages caused by the pet or owner.  So it is not a fee.

Oral agreement does carry some weight in Texas, so I regularly emphasis to people I come to contact that nothing is firm unless it is written and agreed to.  In my leases, there is a standard statement that reads

"There are no oral agreements between Landlord and Tenant."

Steven Woon · Answer

Your term is two months deposit TODAY but the countered with one month deposit today and another month in August.  As far as I am concerned, they did not accept your offer as is, so I guess you could "legally" move on if this is what you want.

The pet deposit I charge (depending on the property) is typically $300 to $800 and an extra $20-30 a month for each "approved" pet.  Prior to having potential tenants fill up an application form, I get them to read and acknowledge a copy of my "Tenant Selection Criteria" which specifies all these, so they cannot claim ignorance if I ask for such payments when they are selected.

Quynh-Chi Nguyen · Answer

@Andreas W.

That is correct, nothing has signed yet. We just email each other back and forth on application, forms and stuff. I did send over the lease for them to look over the terms.

Thanks so much for all of your inputs. This is my first time dealing with people so I am a bit scared :-)

Andreas W. · Answer

@Quynh-Chi Nguyen

Do I understand it correctly that you have not signed the lease yet and you have not collected the security deposit, neither the first month rent? If that is so, just insist on your previously stated conditions and give applicant 1) 24 hours to accept those and not much longer to sign the lease and hand you 2 months of deposit plus first month rent. If you don;t hear back in 24 h, you assume they are not longer interested in renting your condo. This is not legal advice. Again, read your state statutes or ask a lawyer.

Quynh-Chi Nguyen · Answer

@Andreas W.

We went pretty far up to the point of signing the lease and collect the 2 months security deposit. They came to see the condo couple weeks ago. Their lease at their current place will end on July 1st therefor they want the least start on July 1. I told them if they could meet me half way which is June 1, which I will give them half off on for June. They agreed and start the application process including the background / credit check which I approved. And now, they said they would be more comfortable to give me the security deposit in July (1 month) then another on in August. This is strange don't you think?

Andreas W. · Answer

@Quynh-Chi Nguyen

I don't know how far you are in the application process with tenant 1) Is there anything signed? Also, what to do should be determined by your state statutes. I don't know those for for CT but they are likely online. As a landlord you are stepping into legal territory that you need to become familiar with.

Andreas W. · Answer

@Quynh-Chi Nguyen

I forgot to add: It is your property, which means you set the conditions. Best is to be upfront with all your conditions to potential tenants. You can write them out and have tenants review them before they fill out an application. Some will be put off and move on. These are tenants you don't want to have anyway. Make sure you treat every applicant the same way to avoid opening the door to potential discrimination problems. That could be costly.

Quynh-Chi Nguyen · Answer

So I can legally cancel on # 1 without any trouble? Do I need to send them an Adverse Action Letter?

Andreas W. · Answer

@Quynh-Chi Nguyen

Forget about 1) Chances are high they will move out after a month. If the retired couple checks out with a background check and financials, I would offer them a 1 year lease. Remember that long leases protect the tenant, not much the landlord. Also, my inclination is that a one moth security deposit for the existence of a dog is on the high side. But I would definitely add a monthly pet fee. Many pets will be hard on your unit and you want to collect money for these extra upkeeps.

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