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Sorry rental prospects, the process does not STOP just because you have submitted your applications.

Reblogger James Wavro
Real Estate Broker/Owner with J.Wavro Associates - Marin

 

Thanks for this valuable insight Wallace!  As a Broker with 20 agents servicing rental property owners in Marin County and the San Francisco Bay Area , I encounter this issue every so often.  I find that setting expectations and communicating the details of the rental process properly helps avoid misunderstandings and saves everyone from unnecessary headaches. 

 

 

 

Original content by Wallace S. Gibson, CPM

One of the BIGGEST mistakes landlords make is to think that the renting process stops when they have prospect applications.  Professional landlords and property managers KNOW that the process is ongoing until the BEST applicants submit their SIGNED lease and their move-in monies are CASHED.

Many landlords attempt to get "tricky" with application and "holding fee" which most states view as a part of the security deposit * and therefore REFUNDABLE * unless there is a separate agreement to the contrary.  Rather than add this EXTRA step, pros just provide their lease and ask for the prospects' signature.  Rental prospects who want "their attorney" to review the paperwork or who want to take time to review the paperwork are often disappointed to get the phone call or e-mail that the property has been LEASED.  They were not told that the process had NOT stopped and that the property was continuing to be shown and applications accepted.



I try to explain as early in the process as possible that the sooner the lease is SIGNED the sooner the property is considered RENTED.

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans

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Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Boy, the rental market is so time consuming....in Michigan we need a clause that protects the tenant - that the Landolord submit periodic proof of being current on mortgages so the tenant does not get a suprise sheriff visit for eviction. How about you? are your leases including that?

Dec 23, 2010 02:37 AM
Rob Aubrey
Cottonwood Heights, UT

Ann we use 3rd party escrow companies to pay to, then the 3rd party makes the mortgage payments and disburses the rest to the seller/owner.

 

It cost a couple of bucks but worth every dime

Dec 23, 2010 02:42 AM
James Wavro
J.Wavro Associates - Marin - Mill Valley, CA

In California, Tenants are protected by the lease agreement.  The encumbrance runs with the property, despite who owns the property.  Only on a month-to-month tenancy does the tenant risk eviction and California requires 60 day notice to terminate by an owner.  There are other factors and subtleties to the law, but that is a general synopsis of how things work here in California.

Dec 23, 2010 02:52 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

James * even month to month tenants are given 90 days under federal tenant protection law signed in May, 2009 IF they are current with their rent

http://www.nolo.com/legal-encyclopedia/article-30064.html

Dec 23, 2010 03:56 AM
James Wavro
J.Wavro Associates - Marin - Mill Valley, CA

Thanks Wallace for the clarification on properties having tenants that were foreclosed.

Dec 23, 2010 04:04 AM