Holding Deposit Question
I have a couple that is interested in moving into my rental property. They want to move in on May 1st (property is ready now). They are willing to give me a deposit to hold the property untill they move in. My question is what should I charge ? Should I charge the full deposit ($1600) to hold the place and they would just pay the rent on May 1st ? Should I have them sign a document that states that the deposit is to hold the property and if they do not move in I can charge them a daily pro rated fee since I would not be looking for a tenant during that time ? I just don't want to take their deposit, stop my search for a tenant and then have them back out and I get burned.
Any feedback would be greatly appreciated
Koz
Are you likely to get a tenant into your property before May 1st? If so, then refuse the offer.
If not, and if you are planning to absorb the vacancy anyway, then accept the deposit as a prepaid security deposit. Have the prospective tenants sign a rental agreement when you accept the deposit with a lease term that begins on May 1.
In accordance with the terms of your rental agreement, the tenants forfeit as much of their security deposit as is needed to mitigate your rental loss if they "break" the lease.
I am sure I could find another tenant, whether they moved in prior to May 1st, I just don't know.
As far as your statement
"In accordance with the terms of your rental agreement, the tenants forfeit as much of their security deposit as is needed to mitigate your rental loss if they "break" the lease."
Is that standard in rental agreements ? I guess I could write it in if not. Thanks
It is common language in the lease agreements used by most (if not all) experienced landlords.
If you don't have any language in your agreement that addresses loss mitigation in the event of premature termination, you need to have a conference with your attorney.
Obviously I am not an experienced landlord
I will review my lease argreement in more detail to ensure that I am covered on this.
Thanks for you help !
ask for a reduced rent for the time period in question if you feel strongly about these new tenants dont let them slip away, a small nominal fee
