Unique Security Deposit Situation

[Michael G.]

I’m running into a unique situation with a prospective tenant:

They want to rent a unit, but do not have all the upfront costs (broker fee, security, 1st month rent) to sign a lease agreement. They are concerned if I keep showing it that they will likely lose their opportunity to lease it on 4/1 (good chance of this happening).

I mentioned to them that I will stop showing it and assure they can lease it on 4/1 which will give them time to acquire the remaining funds. However they will have to provide the security deposit now and risk losing it should they not be able to meet the terms of the lease agreement on 4/1.

Can I do this? If I stop showing the apartment and they do not have the funds on 4/1, I would be eating up the cost of another vacancy.

I was thinking of having them sign a document which states they will forfeit the security deposit should they fail to meet the terms of the lease agreement on 4/1. Has anyone ever experienced/done this before? Can anyone suggest any language or specifics to include on this document?

Thanks!

[Mindy Jensen]

@Michael G. , if you rent to these tenants, you will regret it. You require $X upfront, and they do not have $X. Therefore, they are not qualified to rent this property. You've said there is a good chance they will lose the property if you continue to market it. That's THEIR problem. Your problem is renting the unit to a qualified tenant. Keep marketing it and you'll find a qualified tenant.

Don't bend your rules to fit a tenant, just because they "really want to rent your property." Find someone who really wants to rent your property who can afford it. You're not asking the moon, you're asking what literally every other landlord is asking for.