How long will you hold a rental with a deposit/fee paid?

Question

I have a rental advertised as available Feb 1st. I'm getting calls from prospective tenants who say they're looking now for a rental with lease beginning in April or May. While I appreciate their willingness to plan ahead, I wonder how many landlords will hold a property that long.

I'm comfortable with signing a Holding Fee Agreement 30 days ahead of lease start with the fee rolling over to the security deposit at time of lease signing. Anyone here agree to hold a property for a longer period of time?

And whatever the length of your holding agreement, do you require they complete the application and credit/background check before signing that agreement? Opinions welcome!

Michael Totman · Answer

To answer your last question, you would NOT sign any kind of agreement until you have completely screened this tenant and decided you want this person as a tenant so YES, you would require they complete the application and credit check. That said, is there a reason you can't find someone to rent it on February 1? Today is January 16, you think it would take you possibly 89 days to find a good tenant so you'd settle for a holding agreement until May 1? If that's the case there is something wrong with your rental and it probably starts with asking for too much rent compared to its quality/location/features. If that's the case I'd take those 89 days and clean this place up. Rehab it, make it tenant proof, and make all decisions based on what will make this place easier to rent. Otherwise why would you consider holding an empty apartment for three months? Is this just the first person you liked? Keep looking.

Thomas S. · Answer

I would not be looking for a tenant available February 1st due to the higher risk associated with why they would need a place on such short notice. My add would be for March 1st and I would screen all applicants for that date. Assuming they pass screening I would sign a lease now for March 1st and take a deposit to hold. I would not hold a unit beyond March 1st.

Susan H. · Answer

Thanks for your input, Greg. The March 1st lease start seems entirely reasonable.

Susan H. · Answer

That's a great strategy, and one I'll adapt for my own messages. Thanks for sharing!

Susan H. · Answer

Thanks for the feedback. I couldn't imagine holding a place that long, either, and have been very surprised at the number of people asking for that.

Allen Clark · Answer

I rent short term furnished rentals. Typically tenants stay between 3-6 months. Since the units are furnished I sometimes hold the place for a couple weeks to accommodate their desired move in date. If I have some days to fill then I'll Airbnb it to bring in a bit of cash. I have one open for Feb 10 now and I signed a guy for Feb 18. That's just fine. I had MANY people asking if it'll be available in May or June. I simple reply that I require 30 days notice so I should no better closer to their dates. I would never hold a place for that long.

Brie Schmidt · Answer

I wouldn't hold a rental for anyone. In my area, it is illegal for a landlord to require a tenant to provide more than 30 days notice of a lease renewal (we can ask if they are staying earlier, but we cannot force them to decide prior to the 30 days) so it is very common in our market to start looking the month before you move. If my rental is available Feb 1 I don't start marketing it till Jan 10, because earlier in the month you get people that are "just looking" and are not in a rush. When I get phone calls from tenants that say the are looking to move in a few months I just explain the law, and that it is uncommon for landlords to know if the tenant is staying this far in advance. I market it saying "only accepting applications for Feb 1" and in my confirmation email I restate that any lease will be signed for Feb 1 and if you are looking to move in after you will still need to pay all of February rent. But I also live in a pretty hot rental market and usually have 20+ showings in the first 48 hours of listing and at least 2-3 good applicants

Susan H. · Answer

Deanna, your process seems in line with my own. I was surprised by the number of callers who said one thing during phone screening and then admitted to "just looking" when they came to see property. I'll be sure to clarify my expectations going forward. Thanks for your input!

Susan H. · Answer

Kim, it sounds as though our markets are similar. Appreciate your comment!

Deanna McCormick · Answer

People are constantly in flux, job relocation, divorce, breakups, and I'd not wait longer than 30 days with approved application to fill the unit.Advertise MOVE in Ready for Feb 1stcomplete credit check, they can pre sign the lease pending application approval and once you get the approval you sign it and send them the copy, they leave you the deposit at time of application and rent due date of move in.. some will pay up front, but usually this is pretty normal.My first question on callers is how soon are you looking to move, if they say something Im not in line with I say I'll keep your number but right now I'm looking for someone by Feb 1st my units just that nice and I'm sure it will rent for that date.