Collecting security deposit remotely

[Jeremy Fields]

I have found lately that the number of applicants to my units has dropped significantly. For this reason, once I have someone approved, I want to send the lease for signature with a short time limit, so I can quickly move to the next applicant if needed. Basically, 24 hours to sign, and 48 hours to send deposit.

I most always collect a security deposit and get the lease signed electronically. It's quick and saves me time. And, really the only option with an out-of-state tenant moving to the area. Lately, with the Coronavirus, this has become even more common practice. However, I am always concerned I'll get the lease signed and then never receive the deposit. 

Does anyone know if I can void a lease if the deposit is not received within X days? I write this into my lease agreement, but never had to enforce, and thus test it's validity.

How are the rest of you collecting deposits? Are you setting time limits on the lease once you send it out for signature? 

[Nathan Gesner]

Originally posted by @Jeremy Fields:

I have found lately that the number of applicants to my units has dropped significantly. For this reason, once I have someone approved, I want to send the lease for signature with a short time limit, so I can quickly move to the next applicant if needed. Basically, 24 hours to sign, and 48 hours to send deposit.

I most always collect a security deposit and get the lease signed electronically. It's quick and saves me time. And, really the only option with an out-of-state tenant moving to the area. Lately, with the Coronavirus, this has become even more common practice. However, I am always concerned I'll get the lease signed and then never receive the deposit. 

Does anyone know if I can void a lease if the deposit is not received within X days? I write this into my lease agreement, but never had to enforce, and thus test it's validity.

How are the rest of you collecting deposits? Are you setting time limits on the lease once you send it out for signature? 

A signed agreement has no consequence if you haven't received funds. 

I ask for money first. They have 24 hours to provide the funds or I offer the rental to the next person or put it back on the market.

I have them sign a "Holding Agreement" which is a single-page document. It says they are paying $XXX as a deposit to hold the property with the understanding they will sign the lease and start renting on (DATE). If they fail to sign the lease and start paying rent by (DATE), for any reason, then they will forfeit the entire deposit and the property is offered to the next person or goes back on the market. 

I also include a "sight unseen" clause that says we market the home with images and video to attract in-person inspections. We will rent to them "sight unseen" but if they change their mind after seeing the rental in person, they still forfeit their deposit. This may sound harsh to some of you but I had three applicants just this week that rented without viewing in person and then they changed their minds for different reasons.