New ? about renting private home

[Martha13]

Hi all--I sure do appreciate all of the help I've been getting on this situation, thanks. We are still negotiating with this homeowner, and I"m feeling a little pressured to make a decision. They are requesting such a HUGE security deposit because we have a dog, it's really too high I think. But, my question is--when you rent a home, should you get the keys to the home the same day you sign the contract? The owner and his partners were wanting us to sign the contract this weekend if possible, and pay the amounts they're requesting, but then not actually get the keys until 2 weeks later (July 15th) when we would begin moving in/contract date would start. Is that typical? I just have this sick feeling in my stomach about handing over all that money, but not actually getting keys...thoughts? B girl--are you out there?

[PoorGrammyinBK7]

Caution...

I wouldn't do that - how do you know its not a scam?

[Martha13]

I wouldn't do that - how do you know its not a scam?

That's why I'm so nervous! There is one part that has helped reassure us: it's a brand new home, and the first time we went and looked at it, we were actually able to get the key from the sales office of the development.

[Cali]

When we rented, we signed contract, paid 1st mth rent and huge deposit. We got our keys that day.

[HHM]

Is this a management company, or just some person.

Generally speaking, it is typical to have to put some sort of deposit to hold a rental if you are not going to move in within the same week you sign the contract. When I moved to Denver, I paid the deposit weeks in advance of move in, but then again, I was dealing with a well established management company.

If you want to determine if it is a scam, offer something like this:

20% now
and the rest as a post dated check. If they say no, it is probably a scam.

Personally, I think you are being paranoid. But then again, I am not on the ground where you, to answer your question, yes, it is fairly typical to pay the deposit when the contract is signed, and you would typically get the keys on move in. (think of it this way, it is possible the current tenants have not even moved out).

[Martha13]

My middle name has become paranoid since beginning this journey. I just don't want to make the wrong choice. On one hand I thought it might be best to wait a little longer before renting to at least get the benefit of living "payment free" for awhile, but now this opportunity has presented itself. So, if we squeeze out the money to make this happen, I just need to feel really, really sure, that is why I am trying very hard to consider all angles. This is a private owner (I think they are trying to hire a property mgmt co to handle things, however). But if it seems ok for there to be some time between signing the contract/getting the keys, I'll feel better. My gut does not say "scam"...just trying to be a wiser person going forward.

[HHM]

If you really want to find out, you can probably do a title search online at the county recorders office and see if the person you are dealing with is the actual owner. (but, if this person was able to actually show you around place, you are probably good to go).

[Help!]

My feeling is that if they're asking you to fork over the deposit and first month's rent (are they?), you should have the keys. If you're trusting them with that money you've "squeezed out", they should trust you in return.

If you don't feel 100% comfortable or it just doesn't feel quite right, I'd say trust your instincts. There is no shortage of homes for rent out there.

[Martha13]

Yes, first month's rent, plus a security deposit which is equivalent to twice the rent, basically...because we have a dog, and they originally said "no pets". We have actually been requested to send them pics from our current home of our yard, carpet, etc. And, separate from the deposit, we would have to have a "professional cleaning" done at move out, at our expense. Now who is paranoid? haha...but seriously, this dog is very old, sleeps 99% of the time outdoors, and could never in a million years do the damage = to the amount they're asking for upfront. I'd be more concerned about my 3 kids

[Martha13]

HHM--that was such a great answer..I never even realized you could search online for that info! I did try under the only 2 last names I have, but unfortunately, couldn't find them. But there are "partner(s)" involved, so with my luck, it's the 3rd one whose name it's in. Yikes. Help, how did you know which rental to go for? Did you move in before your home went into f/c? Thanks so much, guys...this is helping so much. Not feeling so alone. Another ? for you Help--I think I recall you saying you moved near your current home? And you have kids, correct? Any stigma for you as far as the big FC with your former neighbors/school friends/etc? Or have you reached the point of who gives a rat's .... I know I'm close!!

[Help!]

We actually moved across the country from the home we're surrendering (we never planned to file BK, just couldn't sell the house and I haven't found a job). It would have been very difficult to stay in our gossipy little town and go through this, but I really am at that "rat's ..." point anyway.

We lived in a very snobby neighborhood where everyone was outdoing each other with landscaping, home improvements, cars, boats, etc. As we struggled to keep up with our bills, our neighbors were bragging about the vacation properties they were buying, their cosmetic surgeries, their cabins, their shopping, their vacations and how much money they were making. We didn't spend our money like that, but it always made me feel bad that everyone else was doing so well and we were barely making ends meet.

It was all BS! Six of those homes were auctioned after foreclosure in the last year and who knows how many more are right behind us. It is true, pride destroys finances.

Our friends in our old town know that we've been trying to sell our house for nearly a year and a few of them know we've dropped the price to the point of a short sale. I talk openly about the situation, in hopes that if any of them are falling behind they'll know I've been there, done that... and learned a lot.

As for the rental, we drove around on our interview trip and found the perfect neighborhood with new homes. At the time (when we thought our home was worth its last appraised value), we thought we'd have a downpayment in a year and a half to afford one of them. We contacted the builder and asked if they would consider a rent-to-own arrangement. They allowed us to do this, but within about 4 months we realized there was no way our home was going to sell. We let the builder know right away, and they were incredibly understanding. After all, they built 12 homes in this neighborhood and seven months later not a single house has sold. We are in this ghost town of a neighborhood living in a $500K house for $1800/mo. I think they're actually happy to be getting cash flow, even if it is only from renters. I know we have at least another year here, possibly longer if the housing market doesn't pick up.

[HHM]

Yes, first month's rent, plus a security deposit which is equivalent to twice the rent, basically...because we have a dog, and they originally said "no pets". We have actually been requested to send them pics from our current home of our yard, carpet, etc. And, separate from the deposit, we would have to have a "professional cleaning" done at move out, at our expense. Now who is paranoid? haha...but seriously, this dog is very old, sleeps 99% of the time outdoors, and could never in a million years do the damage = to the amount they're asking for upfront. I'd be more concerned about my 3 kids

All that is fairly standard for home rental. About the only thing I would balk at is handing over first month rent in addition to the deposit before you get the keys. As I said above, the deposit is expected to be paid when you "sign" the lease. But I would probably only turn over first months rent when they give you the keys.

Yeah, pets are the money cow for landlords (granted, it is true that pets increase wear and tear), but you are correct, generally, what they charge is in excess of the actual cost of the wear and tear (in many cases).

[Stilltheone]

I agree...I would tell them that they will get their $$ when you get the keys....too risky for me!

[csrhjr31]

My husband and I are surrendering our home and are doing a lease/purchase from a private owner. We signed our contract and gave them a security deposit (it is actually our option money, it is being held in escrow by the owners until we purchase the home). We received the keys a few weeks later after they moved out. I didn't think anything of it.

[b_girl]

I'm a private landlord, and if rent is paid, the keys are given to the new rentor. If only a deposit is paid, the keys aren't handed over until we have the rent in hand. I'm sure most landlords do the same. I wouldn't feel comfortable about this arrangement either. Be prepared to walk away to protect yourself and your money.