Buying single family house and renting out current apartment

Buying single family house and renting out current apartment

Cohoes, NY · Member since 2015 · 34 posts · 4 votes

Hi all, my wife and I had an offer accepted on a single-family home and are going to be renting out our current property. We have a closing date of March 9th but realize that could potentially end up being later. We marketed our current apartment as being available April 1st. We have done all the screening and have found suitable tenants, but I figured we should wait to sign a lease with them until we have officially closed on our new place in early March. If that is what we should do, should I also wait to collect the security and first month's rent until we sign the lease after closing? I am working on sending them an acceptance email, but wasn't sure how to word it all because of our circumstances. Thanks!

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    Any time you approve an applicant, you should require the security deposit immediately to hold the rental for them. Without money, you've got nothing to tie them to the rental. I call it a "Holding Deposit" and use a "Holding Agreement" to explain why I am taking the money, that it converts to the deposit when they move in, and that they will forfeit it if they change their mind or fail to start renting by the agreed date. It's one page and simple, but it's saved my bacon more than a few times. Connect and send a message and I'll share a copy.

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