Securing a renter while property is under constuction

[Brett Paulk]

Hello BP,

I'm a new real estate investor. 

I've got a SFH that is currently still undergoing renovations, scheduled to be completed in the next 8 days. During this construction time, I've been marketing the property with updated pictures as the reno takes place, in an effort to secure a tenant as soon as possible once the reno is complete. Well, the strategy has worked. There is a tenant that has gone through all of the application screening process, toured the house via my approval, and stated that they want to lock themselves in to a lease prior to the construction completion.

My question is, do I simply complete a full lease now?  Or do I write up some literature that will allow the tenant to pay their security deposit, take the property off the rental market, and then complete the full lease upon move-in date?  Any advice is warranted!  Thanks BP!

[Michael Noto]

@Brett Paulk Collect a deposit from them as a "deposit to hold" which will then revert to their security deposit when the lease starts. 

Write up a short and sweet agreement stating that they have given the deposit to hold and that if they decide to back out the deposit to hold is not refundable. Then in between getting the deposit and the lease start date work on getting the lease docs signed. 

We like to make it so the day they move in they pay us the remaining move in money (typically first months rent), we give them the keys and we are all set. Get all of the paperwork, and transferring of utilities done before that.