Let's say you have a vacancy now, and you get interest from people for February 1st, 10th, whatever.

I have been telling them that I will hold it for as long as they want, but we need an executed lease and rent paid within a few days.

I don't know if that's reasonable. If I were to rent a place effective 2/1 today, I would be willing to split this month with them.

How do you handle this?

2 weeks maximum hold, then they have to start paying rent. To hold, they must provide cash/cash equivalent funds in the amount of the security deposit as a Holding FEE, which if they move in as scheduled will be credited toward the move-in costs. But if they back out for ANY reason, that FEE is forfeit as liquidated damages because we turned other potential renters away.

I generally sign leases 2 - 3 months in advance, so it doesn't usually require holding a vacant place. At that time, we collect a holding fee. That fee becomes the move in fee and first month's rent, and is non-refundable.

All depends on your market.

I start showing apartments 1-1/2 months before old tenant leaves, for a starting date of the first, after the tenants are out. I fudge for a few days to get the property ready. I wouldn't hold it empty at all without paid rent, and very few tenants are willing to pay for an empty apartment.

I do it this way because I can. My market is good enough to be able to do this. Other markets may not have this situation.

"Would it not be simpler to collect security deposit,first months rent and any prorated amount up front?"

That would be a violation of security deposit law if you're already maxing out the deposit.

"How do you put in the lease to prorate on the second month?"

I'm with Barb & am usually showing & pre-leasing 45 to 60 days prior to lease expiration. Collect the non-refundable holding fee (security deposit) plus application fee. Sign the non-refundable holding fee binder & the lease & wait for the lease start date.

I've got a vacant unit right now & want it rented right now. If they're looking for a March 1 date I won't even bother to show. I'm not holding a unit vacant for 45 days. If they need to wait a week, I'll hold it a week with a signed lease, security deposit, app fees & first month's rent collected.

The market I’m in is heavily college students. They rent June 1 to end of May, sometimes August 1 starting.

I start showing and signing the last week of January, after the students come back. I’ve already got notice from two of them that they are not renewing. I’ll rent out theirs first.

I use a move in fee rather than a deposit as is customary in my market. It is my average turnover cost. I roll two hours of cleaning into it. I don’t tell them that. I send a bill after move out.

Jeff,

This works EVERY TIME without fail and without confusion, and without being challenged in court:

***It ain’t rented til it’s rented***

We text they are approved and ask if they have the money amd are ready to sign. If they aswer yes we set up the 2 Minute In Home Visit appt within 24 hours.

Change: we now take the lease to the visit and accept their deposit. We set a sit down appt to review the lease and pass keys.

The prorated rent starts the day we take it off the market.

Not ready? NEXT! We’ll keep you approval open for 30 days for our other homes.

PayDayPlanRent makes this easier - depsoit plus first week of rent while other LL wait for full dep and full month.

BRAD

I never "hold". But I will process an application and confirm all needed items to start a tenancy. Once approved, the applicant has two or three days to come up with all of the move-in costs and sign a lease. That's First Months Rent and Security.

Until they sign on the dotted line, I'm still showing the unit and taking more applications.

No holds. I start marketing 60 days outs. Deposit due when lease is signed. First month rent due before they get keys. Rent is ue no matter when they move in.

Recently had a lady rent a place she didn't need until February. THat's fine but I'm not holding it until February, so she paid Deposit, 1/2 December and all of January and will actually move in February.

I am willing to hold a place for about 3 weeks. I do have a policy though that the future resident pay rent for 1/2 half of that period.