Real Estate

Deposit while waiting for tenant to sign lease ??

  • Last Updated:
  • Feb 16th, 2019 9:19 am
[OP]
Member
May 27, 2013
299 posts
16 upvotes

Deposit while waiting for tenant to sign lease ??

How do u get a rental applicant to not back out ?
I have one that I thought was totally Interested I waited till end of week to meet them and they changed their mind last minute.

Can I get them to sign lease via email and send first and last via etransfer?

I am allowed to ask for a deposit prior to signing.

Cause this cause it to be the end of the month and lost out on other applicants. ....
14 replies
Newbie
Aug 15, 2018
20 posts
17 upvotes
Don't assume you sold it until you have money in your hand. An application is not a signed lease.
Its like a salesmen asking why the customer didn't buy after showing so much interest.

Keep showing the unit until you have a firm lease + first/last.
Deal Addict
Nov 14, 2006
1357 posts
574 upvotes
GTA
E-transfer first and last or have cash in hand , until then unit is available in my books.
[OP]
Member
May 27, 2013
299 posts
16 upvotes
Can I accept first and last via etransfer?

Obviously they can sign the lease via email??
[OP]
Member
May 27, 2013
299 posts
16 upvotes
lilmikey wrote:
Feb 15th, 2019 9:43 am
E-transfer first and last or have cash in hand , until then unit is available in my books.
Before its signed ??
Deal Guru
Jun 26, 2011
11772 posts
2124 upvotes
Markham
Until a lease is signed and 1st and Last in hand, it's available.
Deal Fanatic
User avatar
Mar 23, 2008
8237 posts
4926 upvotes
Edmonton
wantboost1 wrote:
Feb 15th, 2019 9:21 am
How do u get a rental applicant to not back out ?
I have one that I thought was totally Interested I waited till end of week to meet them and they changed their mind last minute.

Can I get them to sign lease via email and send first and last via etransfer?

I am allowed to ask for a deposit prior to signing.

Cause this cause it to be the end of the month and lost out on other applicants. ....
As other's have said... Your problem isn't the deposit. The problem is the assumption on your part that they were "really interested". Until someone signs the lease and gives you the money, it's available.

For that matter, why would they give you the money before they sign the lease? That would be stupid on their part. IMHO.

C
Deal Fanatic
Feb 29, 2008
6920 posts
2320 upvotes
Back outs are normal. I keep showing the place until I have a signed lease and first and last. Don’t ever take someone’s word.
Deal Addict
May 12, 2014
1672 posts
1090 upvotes
Montreal
wantboost1 wrote:
Feb 15th, 2019 9:21 am
How do u get a rental applicant to not back out ?
Simple: have your application form oblige them to sign a lease if they're accepted. Isn't this valid in Ontario?
Deal Fanatic
User avatar
Sep 8, 2007
6405 posts
5138 upvotes
Way Out of GTA
FrancisBacon wrote:
Feb 15th, 2019 10:18 pm
Simple: have your application form oblige them to sign a lease if they're accepted. Isn't this valid in Ontario?
Imagine if you made a number of job applications and interviews and were obliged to accept if accepted?

I don’t believe that would be enforceable in Ontario nor do I think it is everybody’s best interests. Forcing a tenant into a unit when they’ve got cold feet is recipe for disaster. As others have said only consider it rented when the lease is signed in full and deposit received. I always tell potential tenants this in order that they get their info together quickly if they are interested. Many people simply fail at that point. I had one “really interested” guy agree to bring his credit report and when he came to see the unit all of a sudden no report and “well had some credit cards stolen”.

it’s also a cost of doing business. Some lazy landlords show the place to some people and good a good vibe and automatically think it’s rented and slow down showing it. Meanwhile the tenants are seeing multiple properties. I’d say that’s the LLs fault. Just because people like a place and say they want to take it, that’s not an enforceable contract either. Just as the LL wouldn’t want to accept them without further background verification.
Deal Addict
Nov 14, 2006
1357 posts
574 upvotes
GTA
@cartfan123

Never happened to me but but a thought , tenants sign lease send you first and last. They end saying they change their mind, you have no time to find new tenants to save it from being vacant for at least one month. Do you keep one of the months deposits or you send back it all and lose one month's rent ?

In the end , the signed lease agreement means what in this scenario?
Deal Addict
May 12, 2014
1672 posts
1090 upvotes
Montreal
cartfan123 wrote:
Feb 16th, 2019 6:47 am
...I don’t believe that would be enforceable in Ontario nor do I think it is everybody’s best interests. Forcing a tenant into a unit ...
I think we're talking about slightly different situations.

What I have in mind is this: tenant views unit, maybe even multiple times, says whatever he wants. He is NOT bound.

But then tenant signs an application form obliging the landlord to answer within X days. Landlord says "accepted" but due to either party's scheduling issues maybe it takes say 8 days to meet and sign a lease.

At that point, if the application is properly drafted, BOTH sides have rights. Certainly the landlord is not allowed to keep showing the unit and the tenant can demand either vacant possession or damages.

If the tenant doesn't sign a lease, the landlord can demand damages for however many months it takes to re-rent the unit.

That's the law in Quebec.
Jr. Member
Jul 26, 2015
186 posts
102 upvotes
Vancouver, BC
wantboost1 wrote:
Feb 15th, 2019 9:21 am
How do u get a rental applicant to not back out ?
I have one that I thought was totally Interested I waited till end of week to meet them and they changed their mind last minute.

Can I get them to sign lease via email and send first and last via etransfer?

I am allowed to ask for a deposit prior to signing.

Cause this cause it to be the end of the month and lost out on other applicants. ....
I am not sure about your angle here.
You own a property and you have a right to rent it to anyone who you consider to be fit to enjoy your property.
The number one priority is to get the right applicants, screen them properly etc. to avoid future issues.
Why would it bother you if an applicant wants to back out? It’s their loss, not yours.

I would suggest you NEVER, really NEVER accept money prior to signing a lease agreement. Money is likely to be seen as “consideration” under the common law principle. Once you’ve done that, a bad tenant doesn’t really need a contract. You kind of provided him something (your house) for consideration. It is especially relevant with the single family homes.
A client of mine had a case on his hands many years ago. I don’t want to go into details. Bottom line: accepted a deposit prior to screening. Stopped by the house the next day - the guy already let himself in. Question: What are you doing here? Answer: You took my money and rented me the place. Question: Where is your contract? Answer: You didn’t ask me to sign one, I gave you my money. Several months rent free after that prior to eviction.

Never be too eager to rent out your place.
Deal Addict
May 12, 2014
1672 posts
1090 upvotes
Montreal
Sam286 wrote:
Feb 16th, 2019 9:09 am
I would suggest you NEVER, really NEVER accept money prior to signing a lease agreement.
This. Definitely this. Don't accept money until something clear is signed.
Sr. Member
User avatar
Oct 24, 2016
523 posts
360 upvotes
ON
As soon as I accept a tenant I get a small deposit from them and stop any further showings. After a few days at the time of signing the lease I take the first and last month minus the initial deposit.
Isn't it great to live in the 21st century where deleting history has become more important than making it.

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