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Once a lease is extended
What are the rules, formalities and curtousies behind this situation? A possible tenant is chosen and the lease is extended (refered to as Person A. You tell them once they sign and submit the security deposit that the property will be taken off the market. They are excited and claim they will sign it within a day. Meanwhile, you continue to show the house and Person B and Person C show extreme interest. They ask to apply and are eager to sign a lease should it be exteneded. Do continue to extended applications and leases or wait to hear the response from Person A? Before extending another lease?
#1 All Forums Contributor
- Investor
- Virginia
@Joshua Ingram
If they have not provided any type of deposit someone saying “they are interested” means nothing to me. I would reach back out to them and say we have significant interest and we need paperwork back by Close of business otherwise we will go in another direction.
Chris,
That makes sense to me. It’s very competitive out there and I certainly don’t want to loose good potential tenants because of this situation. I just wanted to check that my thinking was ethical. I appreciate your insight.
Quote from @Joshua Ingram:
What are the rules, formalities and curtousies behind this situation? A possible tenant is chosen and the lease is extended (refered to as Person A. You tell them once they sign and submit the security deposit that the property will be taken off the market. They are excited and claim they will sign it within a day. Meanwhile, you continue to show the house and Person B and Person C show extreme interest. They ask to apply and are eager to sign a lease should it be exteneded. Do continue to extended applications and leases or wait to hear the response from Person A? Before extending another lease?
Own your process!
My policy is that they pay the deposit in full within 24 hours. IF they don't, I offer it to the next qualified applicant.
@Joshua Ingram I agree with the others that have already commented. As long as there is no signed lease and security deposit, there's no obligation on your end. Continue with the applications!
#3 Managing Your Property Contributor
Give person A 24 hours to sign the lease and give you the deposit or you move onto the next person. Also when you collect the deposit, tell them it is non-refundable if they back out and that it will become their security deposit once they move in. Make sure all of the utilities are in the new tenant's name before you hand over the keys.