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Rainmaker
1,212,459
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It's been a year since I've done this, but if memory serves this is what I did:

  1. They like the house and fill out an application.
  2. I run a background check.
  3. I decide to rent to them and they sign the contract.
  4. I usually charge a deposit fee, first month's rent and if the contract starts in the middle of the month and they move in at the start of next month, they pay for those two weeks up front.

Contract starts when signed and payment starts then.  I don't take anyone's money until there is an executed contract, unless it is an application fee.

Feb 17, 2016 10:01 AM
Rainmaker
1,280,572
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

When I did property management, I would take a processing fee with the application.  The security deposit was taken when, and if, the application was accepted.  The rent wass due on whatever date wass agreed upon, but before possession.  The lead time you mention may be a policy to allow lead time period to verify funds prior to possession.  Each property owner has their own policies but must follow the jurisdictional law.  

Feb 17, 2016 12:25 AM
Rainmaker
3,049,971
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

parked and reading - have not dealt with this in years

Feb 16, 2016 10:37 PM
Rainer
138,389
Chrissi Chapman Topoleski
Re/Max Real Estate Connections - Haymarket, VA
HOME~There is no place like it!

It is customary for a processing fee and a deposit equal to one month's rent be collected with the application. The deposit is returned if it is not accepted. The first month's rent is due prior to move in, and is collected after a lease is signed. It is important to have tenant representation by an agent, or to be very diligent not to fall prey to scammers. Your brokerage should have procedures in place to follow when representing tenants and landlords.

Feb 16, 2016 10:36 PM
Rainmaker
211,685
Joy Bender
Compass - La Jolla, CA
San Diego Partner - The Private Client Team

in order to secure money needs to change hands with an executed contract if I am representing the landlord.

Feb 18, 2016 11:14 AM
Ambassador
4,298,296
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

It depends on what the landlord/agent want for the lease.

Feb 17, 2016 03:02 PM
Ambassador
4,064,616
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Big chunk of cash long before moving and without a contract.

Are they asking you to send it via western union to africa too?

Feb 17, 2016 10:57 AM
Rainmaker
1,157,264
FN LN
Toronto, ON

No.

Feb 17, 2016 09:56 AM
Rainmaker
2,394,765
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

In my State we cannot write this type of contract without a property managment designation.

Feb 17, 2016 09:20 AM
Rainmaker
79,993
Linda Guess
Keller Williams Tri-Lakes Branson, MO - Branson, MO
Branson area real estate sales.

I would not pay the deposit and rent prior to having an executed contract.  From my experience you pay an application fee.  A credit and background check is completed.  If approved pay the deposit.  When the home is ready for move in, pay the rent.

Feb 17, 2016 08:40 AM
Rainmaker
2,708,494
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

This is very good question.

Feb 17, 2016 07:18 AM
Rainmaker
633,936
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

The terms of the lease should define when the deposit is due.

Feb 17, 2016 05:33 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

As an agent, I would first get an executed lease agreement and then have the tenant pay the deposits to the landlord or the property manager.

Feb 17, 2016 03:32 AM
Rainmaker
4,875,519
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

I leave that to our property management dept....I do not like marketing rentals....on occasion, I'm "saddled with one"....

Feb 17, 2016 03:15 AM
Rainmaker
5,269,893
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Your follow the terms of the lease.

Feb 17, 2016 01:15 AM
Rainmaker
2,426,213
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I am flexible and open to discuss this and more. Give & take done correctly gives good results

Feb 17, 2016 12:03 AM
Ambassador
3,917,920
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Listing agent usually collects a fee with the application for the credit check, etc. Rent is due at or before move in along with security deposit (could be around 1 month of rent or more depending)

Feb 16, 2016 10:40 PM