(PA) First, Last and Security (Relatively New Landlord) : ezLandlordForms

Start a new topic

(PA) First, Last and Security (Relatively New Landlord)

James S

started a topic over 8 years ago

I am approaching my third set of tenants. For my first tenants, I asked for First Month and Security, and they had no issues paying this prior to Move-In. Over time, I spoke to other Landlords, who said I should always collect First, Last and Security. For my second tenants, I did just that, but allowed the tenant to pay the Last Month over the following two months. Going into my third tenancy, I have an otherwise acceptable applicant who refuses to pay Last Month, and wants to negotiate paying the First and Security over time. I'm very wary of that, as I gather that First and Security is fairly standard before Move-In I have also gathered that, in the event that I do collect the Last Month, it is actually considered a deposit, since it is an amount that is being is escrow held by the Landlord, and not being applied until the final month of the lease. PA Law allows up to two months to be collected as security, but entering the second year, any amount of security over one month must be returned to the tenant (http://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1951&sessInd=0&smthLwInd=0&act=20&chpt=5&sctn=11&subsctn=1). With all of that in mind, should I even attempt to collect Last Month's rent? Should I instead ask for a larger security deposit (that I'd have to return after 12 months if it's a multi-year tenancy)? Is there an error in the Pennsylvania Lease Agreement designed by EZLandlordForms when it states that "Advance Rent" will be carried over to subsequent lease renewals?

1 Comment

Richard W

said over 8 years ago

Firstly, whatever you decide to set as a security deposit I would collect before signing or at signing. If the tenant does not have the full amount do not sign. This has led me to many issues where tenants want to pay over a period of time. This is not a layaway product it is a home and you will get burned. Again this is from personal experience. Good tenants are organized and have money prepared for renting. Now, I can say if you want to charge first last and security that is fine however first a security suits me and my tenants well, only occasionally will we have a tenant that wants to leave the last month and use the security for that last month, this is a no no. As for the EZ Lease Advanced Rent, I do not think refers to security deposit, rather landlords and tenants who agree to pay in batches, say 3 months or 6 months at a time.