Sent a lease out and applicant disappeared and never sign...

[Vikram Deol]

I sent a lease out which I had signed and the tenant went MIA on me after I emailed it to her. Now, I made the mistake of signing it and emailing it to her b/c prior to sending it she was very responsive. I have another couple who wants it and they are more stable to.

Question, I emailed her canceling the lease but she still has a signed copy in her inbox from me. What legal ramifications do I have and what legal rights does she have. 

I can't believe I signed it in the haste of trying to get first property rented...

Thank you, 

Vikram 

[Nathan Gesner]

I will add to what @Jon Crosby said: the contract is binding once it's been signed AND returned to you. She can't sign it and keep it; she has to sign it and return it to you to verify it's been signed and agreed to.

You're safe. If you sent it via email, send her an email that simply says she has been unresponsive so you are rescinding the offer and renting the unit to someone else. If you have a phone number, I would also send her a text. Then move on.

It is very common for people to indicate they want a rental only to flake out somewhere along the way. My process:

1. Application fee is non-refundable, for any reason. If they apply and then change their mind two hours later, I still don't refund the application fee.

2. I don't process the application until it is complete. That includes a copy of their picture ID, proof of income, application fee paid, etc. If there are multiple applicants, I don't process any of them until ALL of them have submitted everything I need.

3. First come, first served. If Joe applies on Monday and I'm still waiting for his proof of income, Sandy can provide me with a complete application on Wednesday and I will move her to the front of the line. If Sandy is approved but says she wants to continue looking around, Joe could finish his application on Friday and then I'll offer the rental to him.

4. Once someone says they want to rental, I give them 24 hours to pay the deposit in full and I only accept certified funds (cash, money order, or cashier check). IF they fail to pay the deposit, I offer it to the next approved applicant or continue to market it. I don't take payments. I don't hold it for three days while they wait for their next paycheck. They can either take it now or they can take their chances it will still be available when they have the funds ready. At the same time, I send them the lease to review and sign. I do not wait until the day of occupancy to sign the agreement because there are some terms that apply even prior to occupancy, like how to handle the deposit.

5. If they fail to move in, they forfeit the deposit. A lot of people call and say they've found something better, or they decided to stay in Minnesota, or they don't like the size of the bedrooms, or whatever. If they fail to follow through with our agreement, they forfeit the deposit entirely to compensate me for the trouble. I send them notification of termination and forfeiture, then we put it back on the market and start again.

I hope this is helpful.