Rental lease question

[Robin Cornacchio]

I found a tenant for my rental home but they won't be moving in for another 30 days. They live out of state. I ran their rental application and everything checks out great. My question is since the tenants won't be moving in for another month, do I have them sign the lease now prior to seeing and inspecting the house or do I just collect the security deposit now and collect the first months rent just prior to them moving in? ? Not sure what the proper action is. Should I have them sign the lease now??

Thank you,

Robin

[Marcia Maynard]

@Robin Cornacchio  Just to be clear about terms we use in this industry, a DEPOSIT is refundable, a FEE is not.

So, to hold the property for a tenant, it's common to charge a HOLDING FEE. This is not refundable. It compensates the landlord for the time the property is off market and not yet rented. Some landlords convert the holding fee to a move-in fee. Some even convert it to a security deposit, but that's more complicated because it's essentially changing a non-refundable FEE into a refundable DEPOSIT.  I wouldn't do that.  In our jurisdiction we can charge move-in fees to cover the work required to move a tenant in, but in some jurisdictions that's not allowed. Easiest thing to do is to charge a HOLDING FEE, and leave it at that. Don't convert it at all.

I agree with the others who advised to not sign the rental agreement (lease) until the tenants have seen the property. One aspect of a typical rental agreement is the move-in inspection checklist. A typical rental agreement will also include clauses that state the current condition of the unit and that the tenant attests that they have inspected it and accepts it as it is. Also, a rental agreement will include terms about transferring responsibility for payment of utilities to the tenant. Once a tenant signs the lease, the transfer of utilities needs to be done as well.

For these reasons, and those others have explained, wait until your tenants have arrived, seen the property, and are sure about renting it. Clear communication from the start is key to a successful tenancy. Difficult to do until all parties have met and have had a chance to thoroughly review, discuss, and agree to all of the terms of the rental contract.