How much to Collect on Day one from a Tenant?

[Shaun Palmer]

Hey BPer's I am just getting going with rentals and I am curious what everyone does on day one that the tenant is approved? This might be a silly question but I want to understand what is consistent with the industry. I have reviewed the current laws for North Carolina and basically, a LL can collect 2x base rent for a security deposit when the lease is annual. Is everyone also collecting first and last months rent? For example: Monthly Rent = $1k Then, Security Deposit = $2k If, 1st and last months rent is collected = $2k This would be a total of $4k initially. This seems steep for a tenant. Please correct me if I am wrong. Thanks in advance

[Michael Noto]

@Shaun Palmer Here is the exact process we use for our own rentals here in CT as well as rentals we fill for our clients:

• Upon being approved as an applicant the tenant needs to give the equivalent of 1 months rent as a deposit.  This essentially holds the apartment for them until the start of their lease.  We explain to them that we only stop showing the apartment after an approved applicant gives their deposit.  This gives incentive for the approve applicant to move quick to make sure they don't lose the apartment to another qualified applicant.
• When we collect the deposit from them, which sometimes could be 2-3 weeks before the lease date start, we have them sign a form saying that by giving the deposit the apartment is theirs as long as they sign a lease and give the balance of the required move in money on or before the lease date start.  If they back out, that is fine but they will not get their initial deposit back
• We send them the lease docs via email in advance to review and sign and the goal is to have all of the paperwork signed before move in day.
• On move in day, they give us the balance of the move-in money (1st months rent and any additional security deposit) and we give them the keys and we are good to go.