Landlord needs to break the lease before the tenants move in.

[Kristy McCoy]

I found a new tenant for my property . Upon signing the lease she provided me with a security deposit .  She did not have the security deposit so she had to get a check from her mom .  One week later it's almost time for her to move in  and she texted me letting me know that she did not have all of the prorated rent .  Note that I said prorated rent . She wanted to pay $79 of it on the 15th . To me that's a huge red flag.  Firrst she could not pay the security deposit, and then she could not pay  first month prorated rent . She has not moved in yet I informed her that I was not comfortable with having her as a tenant any longer. Long story short I wanted to return the security deposit, and find a new tenant.  She sent me a picture of part of her lease agreement and said I was breaching a contract . She said can sue me if she so chooses .  My question is can I have her sign something that states our contract is null and void upon return of security deposit?

[Mike McCarthy]

What does the lease say?

Mine says that the full first months rent (plus partial month if needed) is due upon move in. No first months rent, no keys.

I don’t know if there’s a legal way to terminate prior to the move in date... but that might be a small price to pay.

[Max T.]

If she can’t pay rent she also can’t pay court costs. I’d refund her money then block her contact in your phone.

[Dick Stevens]

You should never have taken a check from her mom for the security deposit.  Any move in funds are cash or certified check only.  You should have a holding agreement that gives them until a specific date to pay remaining move in balance.  If they fail, you move on.

[Kristy McCoy]

Mike it is a standard Illinois lease with no provisions for me to back out. I will be changing the lease for my protection. 

[Kristy McCoy]

Max I hope that is true. I do wonder what the statue of limitations would be on this issue.

[Kristy McCoy]

Dick I like the idea of a holding agreement. 

[JD Martin]

Your lease should say that it is effective with payment as described within the lease. For example, mine says in order for the lease to be valid, it must be accompanied by first/last/deposit. We wouldn't accept any other amount for payment. Then there's no way you could be in breach of the lease, as the lease wasn't executed (because it was not accompanied by full payment). 

Also, you really should never accept anything less than deposit + some full month's rent. If you have to prorate, then it should be (at a minimum) prorate+last+deposit, with the next full rent payment due at the beginning of the next period. For example, if I was going to rent a place that was $1000 to someone starting July 15, we would collect $2,500, with the next rent payment to be made on August 1, as follows: $1,000 deposit; $1,000 last month's rent; $500 pro-rate. 

[George Skidis]

We provide a checklist that works with our keys for cash policy. (The exact opposite of cash for keys) We provide the tenant with a list of things they must complete before they get the keys. Utilities in their name, occupancy permit, background check and full payment of all monies due before the keys are released.

You lease should say something about what is due and payable at move in. If so SHE is in breach of the lease.

The other item here is she seems ready and willing to file a lawsuit over your breach but does not seem concerned about her own. Sounds like a professional tenant with lots of experience. Now is probably the best time to cut her loose.

Have an attorney review your lease and all actions to date. If you can't find one let me know and I will refer you.

In the future you will start asking for all money up front before lease signing. Make that a priority.

Good Luck and Good Investing.

[Jon Holdman]

When I sign a lease I collect the FULL security deposit and one FULL months rent in cash or equivalent and I hand over the keys.  I NEVER, EVER sign a lease ahead of time, just to prevent monkey business like this.  I NEVER prorate the first months rent.  That's a good way to collect a weeks rent and then have a lengthy eviction. 

I will do a short term (week or so) hold agreement with a non-refundable fee that becomes the deposit if they sign the lease on the agreed date.

In your case, I'd speak with my landlord/tenant attorney and get an understanding of my options.

[Amy Beth]

Never allow someone to sign a lease without them paying the security deposit and first months rent. Let tenants know you will continue to advertise the unit until it is paid for. If they want it bad enough they will come up with the money unless they can’t afford it. If they can’t afford it it is not a tenant you would want anyways.

I would find a way to not let her move in since you are already chasing after her for the rent money and she has not even moved in. I would consult with an attorney in your area with a consultation but since she has not fulfilled her end of the deal I doubt she will have any legal recourse. The lawyer should be able to advise you about the beat way to legally decline her. Plus if she does not have money to pay the rent how is she going to have money to sue you? It is likely and empty threat but not a tenant I would allow to move in. Even if she tells you today that her mother has given her the money do not let her move in. She is going to be a headache tenant based on her behavior so far.

[Tom Gimer]

I would prepare an agreement for mutual rescission of the lease and refund her $ once she signs it... and would do everything in my power to prevent her from taking possession. This has nightmare and eviction written all over it.

[Brian Leon]

Just break the lease. People like this don’t have the money to even step into a lawyers office. Don’t overthink it just write a letter she is in breach of the lease for lack of first months rent. If she takes this to court a judge won’t even waste his time considering she hasn’t even moved in yet. Case closed.