Dallas-Fort Worth Real Estate Investor Club

Security deposit

  • 09 Apr 2020 10:19 AM
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    Message # 8889718
    Rhoda Hale

    Hello,

    We have property that will be available to rent May 1st, however the screened and approved candidates wish to move in May 15th. Normally we collect the security deposit, first month's rate (prorated if partial month) and pet deposit (if applicable) on the date of lease signing and move in.

    How should we handle the security deposit in this case? or perhaps require a hold fee of x to be applied toward the security deposit upon signing of lease.  Thoughts? Recommendatons?

    TIA

    Rhoda Hale

    DTE Ventures LLC

    408.807.1870
  • 10 Apr 2020 8:01 AM
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    Reply # 8891523 on 8889718
    Bill Barton

    Good morning Rhonda, collect the security deposit and other deposits prior to lease signing and require the first months or pro-rated months rent prior to move in.
  • 10 Apr 2020 8:41 AM
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    Reply # 8891565 on 8889718
    Robby Smith

    I agree deposits now but I get the prorated and 1st months rent.  It will tell you if they have the discretionary income they need to live their.  Sometimes tenants want to move in the middle of the month just to get into the house.  If they can afford to live there it won't be a problem.
  • 10 Apr 2020 10:10 AM
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    Reply # 8891795 on 8889718
    Neil Aggarwal

    Rhoda:

    It seems like you are intending to hold the property for them and have them sign the lease closer to the 15th. That is not a good idea. Have them sign it now and collect the security deposit at the time they sign it. If they are not willing to sign the lease now, do not hold the property for them.

      Neil Aggarwal
      Property Financing, LLC
  • 16 Apr 2020 11:41 AM
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    Reply # 8904216 on 8889718
    Rhoda Hale

    Thank you for the feedback folks. We are all set.

    Rhoda Hale

    DTE Ventures LLC 
  • 17 Apr 2020 2:57 PM
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    Reply # 8906505 on 8889718
    Neil Aggarwal

    What did you decide? How did it go?

      Neil Aggarwal
      Property Financing, LLC
  • 21 Apr 2020 12:52 PM
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    Reply # 8914427 on 8889718
    Rhoda Hale

    Hi Neil,

    It worked out well. We requested the full security deposit up front which we received last week for a 1 year lease on the property to begin on May 15th 2020.  We'll prorate the month of May which will be due on or before May 15th when we complete the lease paperwork. 

    This couple screened very well, work close by and are very serious about moving in. Plus we have a tremendous amount of interest in this property so should be covered just in case.

    Thank you for your input. 

    Rhoda Hale

    DTE Ventures LLC
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