Should you let your tenant move in early? This is a good question. If you peruse different real estate investing forums, you’ll find many landlords are fine letting tenants move in early.
Personally, I’ve allowed tenants to move in early on numerous occasions, and it’s never been a problem. Here are a few things to consider if you’re on the fence about it.
What money have they paid?
Some landlords state they’d only agree to this with security deposit + first/last month’s rent in hand. For me, I just like to see security deposit & first month’s rent.
What’s really the risk at that point? I’d much rather have an occupied property anyway. It’s not like you’re making money having that property sit vacant while you and your tenant wait for the lease to begin.
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How early are we talking?
Obviously, allowing a tenant to move in early has to be reasonable. A few days or even a week early is one thing. Moving in 30 days early is stretching it I think for most of us.
Good way to build rapport
Allowing your tenants to move in early is a great way to build rapport with them and start the whole tenant-landlord relationship on the right foot.
You might save on utilities
In exchange for letting tenants move in early without charging them extra rent, ask them to at least put the utilities in their name the day they move in. This can save you on utility costs that you’d otherwise be spending on a vacant rental.
Many landlords feel comfortable letting tenants move in early. To cover your bases though, you might ask them to sign an addendum to the lease stating they are moving in early.
Additionally, if you require renters insurance, you’ll want to make sure it goes into effect early as well. Hope all this helps.