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Tenant paid Security but never signed lease and now - doesn't want to move in after.

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obxorbust

Junior Member
What is the name of your state (only U.S. law)? North Carolina

I've only had this happen once before and I returned the deposit, but that was when the tenant called me back NEXT DAY. This woman has had me on the hook for two months.

She came in June to look at the place, filled out an application and gave me the full security deposit. I emailed her the lease and she was supposed to sign it and fax it back to me. She did not but I wasn't too concerned because she was all over the country with funerals and things.

I suddenly had another interested tenant, AND I knew another unit was coming open this month. I called her and asked if she would prefer to delay her tenancy by one month - I would rent HER space to the new person and she could have the other unit as of the first of this month (September.) It would save her a month's rent and she wasn't ready to move yet (from another state.)

She said yes. I said I will send you a new lease. I did. She never faxed it back, although she has said she thought she did. I sent it again, same thing. This morning she asked, via text message, "how will I move in if someone is in the unit?" I said they will be out as of the 28th.

She just now texted me again and said she is not coming her job fell through.

Now what? It's a few days before the first - I will be out a full month's rent if she doesn't move in, I don't know if I can find a new renter that fast!

Am I allowed to keep her security deposit towards unpaid rent?? I'm really unclear as to the law at this point!
 


xylene

Senior Member
What is the name of your state (only U.S. law)? North Carolina

I've only had this happen once before and I returned the deposit, but that was when the tenant called me back NEXT DAY. This woman has had me on the hook for two months.

She came in June to look at the place, filled out an application and gave me the full security deposit. I emailed her the lease and she was supposed to sign it and fax it back to me. She did not but I wasn't too concerned because she was all over the country with funerals and things.

I suddenly had another interested tenant, AND I knew another unit was coming open this month. I called her and asked if she would prefer to delay her tenancy by one month - I would rent HER space to the new person and she could have the other unit as of the first of this month (September.) It would save her a month's rent and she wasn't ready to move yet (from another state.)

She said yes. I said I will send you a new lease. I did. She never faxed it back, although she has said she thought she did. I sent it again, same thing. This morning she asked, via text message, "how will I move in if someone is in the unit?" I said they will be out as of the 28th.

She just now texted me again and said she is not coming her job fell through.

Now what? It's a few days before the first - I will be out a full month's rent if she doesn't move in, I don't know if I can find a new renter that fast!

Am I allowed to keep her security deposit towards unpaid rent?? I'm really unclear as to the law at this point!
You probably have the basis to keep the rent.

HOWEVER, you need to change your business practices PRONTO.

Never accept any money or agree to hold an apartment without a signed, written understanding.

If she didn't sign, you should have returned the money the day she failed to sign.
 

obxorbust

Junior Member
She signed an application, which states it's not complete with the deposit...I'm really not sure how to hold an apartment without a deposit - and the faxing of documents was only for her convenience, she was hitting the road early AM and I had to go through her application and create the lease, etc.

How do others do it? A person says they want the apartment, they give you their application - do you accept a deposit to hold it until you get all the paperwork done or do you offer leases to multiple people if more than one wants it and the first one back - wins?

What's the procedure for most of you?
 

Cvillecpm

Senior Member
In 40+ years as a property manager, if I have learned 1 thing it is to ALWAYS, ALWAYS, ALWAYS give them a DROP DEAD DATE...sign and return lease by 5P, x date.....I always provide 2 copies of lease where I have signed both AND a SASE back to me WITH instructions to FAX the signature page to my ASAP and mail 2nd executed copy to me in envelope provided.

You let it go too long. At the first sign of another applicant, you should have e-mailed her a drop dead date or the unit was GONE!
 

obxorbust

Junior Member
Yeah, I agree with all of the above, and normally, in fact, I would have been all over her. But I was dealing with evictions of three (yes 3 this has not been a great year!) other tenants and let it get away from me. We communicated just enough that I was not terribly worried, you know?

In fact I was JUST getting that hinky feeling LAST NIGHT (told my DH I was going to tell her TODAY to sign or go away...) when I get the texts. Wierd.

With a signed lease, the security deposit issues are all spelled out as we all know.

Without one, I don't know where I stand...I'm guess you could say we had a verbal lease because she DID text me that she would be moving in to the new unit on the 1st, etc.

I guess I don't know the isses of verbal vs. written leases, you know what I mean?
 

obxorbust

Junior Member
I never sign a lease first? I'm afraid of changes made after I sign - so I always make tenants sign first, then I sign after I confirm it's the original document without changes.
 

CA LL

Senior Member
1. Never hold a unit for a tenant unless they give you monetary consideration AND SIGN a very state law compliant holding fee/deposit agreement that protects both parties.

2. Never sign a lease and send to a potential tenant to sign. In fact the safest way to sign ANY legal documents is both parties IN PERSON.

3. Changing terms, conditions, etc. verbally should NOT be done...everything must be in writing to protect both parties.

4. ALWAYS in writing give a specific "start date" and legal unit description and consequences if either party does not perform (this typically is on a state law compliant holding fee/deposit form).
 

obxorbust

Junior Member
1. Never hold a unit for a tenant unless they give you monetary consideration AND SIGN a very state law compliant holding fee/deposit agreement that protects both parties.

2. Never sign a lease and send to a potential tenant to sign. In fact the safest way to sign ANY legal documents is both parties IN PERSON.

3. Changing terms, conditions, etc. verbally should NOT be done...everything must be in writing to protect both parties.

4. ALWAYS in writing give a specific "start date" and legal unit description and consequences if either party does not perform (this typically is on a state law compliant holding fee/deposit form).
I agree with all of the above. I wonder where to find verbiage for a good holding fee/deposit agreement? Security Deposit is different of course, that's set in stone by the state, but I don't know about 'holding deposit'.
 
I'm learning all the time from you guys, excellent advice, Cvillecpm

your steps between application & lease confuse me, she gave you the deposit with the application? maybe I misunderstand, because you're doing at least a credit check in between, right?

how I had been doing it was to say 'I don't hold it for you until I get first month, security AND the lease.' that is, all together. I don't take it down from Craig's List until then.
I take multiple applications, being honest about it & saying first come + best qualified are the criteria: I don't know who is best qualified until I do the checking. this is also the (hopeful) incentive to not delay filling out the app. And then, like I said, I don't pull the ad until I have the $ + lease, which should come together. Now I'll add a drop dead date to the lease & find some wording to deal with any last minute punking out...
 

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