Hi everyone, When do you require move-in funds when someone got approved, ready for lease signing but the property will be available in a month a half because it's still tenant occupied?

Yea, I don't ask for the rent until I hand them the keys. I sometimes ask for the entire deposit sooner than that, such as at lease signing. Or, at a minimum, some type of deposit (even if not entire amount) to ensure they have skin in the game.

I think asking for everything well in advance of giving them access/keys is not something I would go for as a tenant either (too many scammers out there for one thing).

I usually require a non-refundable "hold fee" within 48 hours of approval, typically about 1/3 of a month's rent. This is to compensate me for taking the property off the market for a period of time (not showing to others, removing ads from websites, etc.). This fee would be applied towards amount due at lease signing so long as they follow through. Then collect rest of funds at lease signing, even if that is before move-in...although the house would be vacant and cleaned at that time.

I've never held a property as long as you mention...for something that long I'm not sure how I would handle it...I probably would not have started showing it until closer to that time.

I do as JB and also agree that I would keep looking for another tenant.

We collect Security Deposit at lease signing, first month's rent prior to getting keys.

JimN..... I do the same as you.

In toronto good tenants are looking well in advance of moving, so to get a good tenant, I have to advertise a vacancy well in advance of its availability.

For me, requiring first and last months rent on signing and well before move to in date IS part of the screening.

I understand the tenant being concerned the property wont be cleaned, but you have no guarantee he will be reasonable with his expectations and may leave you with no tenant on move in day. Or that he wont just keep looking and reject your property if he finds something better.

JIM your doing them a favor pre leasing. Don't let them turn the tables on you. I need the deposit to take the house off the market-- to reserve for you.

My (this is you talking to prospect) house are in excellent move in condition-- I can't guarantee what you'll see when you look today.

I normally wouldn't do the full amount (first, security, etc) until there is a lease signed and keys handed over. I too, want to ensure that it is "ready" and cleaned, inspected, etc for next tenant.

The HOLD FEE is a fee and it is the same amount as my security deposit. As some others stated above I advise them that this is for THEM to hold the place (they now have skin in the game too) and they can stop looking as well as I stop showing and advertising. If they don't take the apartment then it's 'Thank you for the money' … if they do then I end up "crediting them" for the SD. It's worded ok and as long as they follow through with the rest of the deal (pay the remaining amounts owed and take possession, sign lease, etc) then we are all good.

Also, looking at the second post you did - I am also thinking "yeah, mr wanna be tenant you need to keep looking ... thank you for your interest." He's getting on my nerves and he didn't even say it to me!

I'm reading all the posts and just wonder about one detail. For those of you who say it's the security deposit or will be applied towards it, aren't you worried that if they back out, and you don't refund, they'll go to court and say "It says right here it is to go towards security deposit...but I never even moved in so how could I have damaged anything?"

Thanks everyone for all your inputs and I do appreciate the interaction from everyone's comments.

I believe to say Holding Fee and not security deposit to avoid possible complaint if it did get forfeited for not moving in.

I also collect a holding deposit, to be applied to the security deposit at move in. I use a "Rental Binder & Security Deposit Receipt" that CLEARLY explains how this works: If they choose not to move in, I keep the holding deposit. If they do move in, I apply toward the security deposit. The amount would depend on how long I am holding the unit for them.

JimN,

I keep it really simple and this ALWAYS works...

***It ain't rented til it's rented.***

-it stays on the market even if the lease is signed , untiil they take possession. Eliminates the what ifs.

-keep taking apps. If you does not like it when it's ready you have others waiting and can refund his deposit. No biggie.

-Commitment comes from the hip (wallet) and until they sign and pay it's not rented.

-I don't mess with holding fees because they get confusing and can be easily challenged.

-We SELDOM pre-rent. People don't move out when they say they will, they leave stuff and promise to come back for it, we find repairs and need time, hard to show occupied props, more confusion...

-good people are cautious and ask questions. But your guy might not be ready. ALWAYS keep marketing until they move in.

BRAD