Checks Before Lease?

No. It's like asking to be robbed.

I am a landlord of walkup buildings in Manhattan, and I would never take anything other than a standard deposit (1 month rent, which will become your security deposit) to hold the apartment before a lease signing.

I will then take the 1st month's rent at the lease signing, when you get the keys...

it should all happen at the same time. what do you mean "prior to receiving a lease"? do you mean prior to getting a signed copy from the LL?

thewiseking: That broker must really be a knock out! lol.

If you have provided a job letter, tax return , bank statement, photo id and a completed application. The landlord has run your credit and is drawing up leases-there is no reason to submit checks prior to lease siging. Although I do know of one management company that does do business that way. What landlord is asking for this?

I don't know about that BigApple. If you want a landlord to stop showing an apartment and take it off of the market, you should expect to pay a deposit.

The reason is that many applicants still flake out at this point (or the couple breaks up or whatever), leaving you with no applicant and a loss of the days you were 'trusting' them. I cant tell you how many times I have taken the time to write a lease (without taking a deposit) just to have the applicant not materialize.

I don't know anyone who would hold an apartment on someone's word that they are taking it....

i did it. lease came next day.

i did to avoid two trips for bank checks

"No. It's like asking to be robbed."

Wrong. Just make sure the person actually owns the building: if they cash your checks, they have accepted you as a tenant, no way around it.

How does the average Joe check someone is legitimate? A scammer might know the name of the owner, and be able to show a unit (because work is bring done and/or loose security) yet not actually be an agent of the owner.
I would never hand over thousands of dollars without a lease. I know it happens and sometimes it's OK, but I'm not that trusting.

You can easily check who owns any building in ACRIS.

Exactly. That's why a scammer might know it as well.
When I posted my first answer, I hesitated about being more nuanced. If you asked, being knowledgeable and sophisticated, I'm pretty sure you would make the proper calls and checks to make sure you weren't being scammed. However, the guy who asked also wondered if his flirtatious broker was hitting on him. He just smells like an easy mark, so for him (and all the average joes out there), the answer is no, absolutely not.

Assuming these are cashiers checks, just make a photocopy to show your seriousness if need be, but don't hand over checks until you get the counter-signed lease back. But it shouldn't be necessary, really. Cost of drawing up a lease for landlord is just the cost of doing business; it's not really rocket science to fill it out yourself if you don't want to pay a lawyer. Just fill out the f-ing blanks. And know that until you get the counter-signed lease back, you can revoke your signature and back out of the deal.

A broker looking out for your interests would have told you all this, no?

"Exactly. That's why a scammer might know it as well. "

And how the hell is he going to set up a bank account in that name?

MAV, it's not like you can cash the check until you have the lease, so what's the point? They can back out regardless, no? So why would you ever stop marketing the apartment until you have a lease?

I understand your issue with "seriousness", but you're really putting the other side in an improper position when you ask them to hand a stranger and potential scammed (you) money for no reason. You can't trust them to follow through on what should take 30 minutes of work or a hundred dollars to turn around, yet they should trust you with thousands in cash? Why not just ask for $50 for a credit check to gauge seriousness? Trust me, this is costing you money. Otherwise serious tenants do walk away based on this as it is sketchy behavior.

30yrs, you're right that a scam is unlikely. But why even set things up in a way where the parties have to be worried about such issues? Seems like a good way to scare off potentially solid tenants.

There are many ways to get a check cashed without depositing into a legit bank account.

"MAV, it's not like you can cash the check until you have the lease, so what's the point? They can back out regardless, no? So why would you ever stop marketing the apartment until you have a lease?"

I would not take a personal check for a deposit, only certified. They do not back out once they give a certified check. I stop marketing it then, because I am an owner with 25 other buildings and hundreds of other apartments to run.
____

"I understand your issue with "seriousness", but you're really putting the other side in an improper position when you ask them to hand a stranger and potential scammed (you) money for no reason."

I never demand a deposit, but if someone wants me to take the apartment off of the market and hold it for them until a lease signing, a desposit is required. By the time people give me a deposit, they have already coresponed with me several times via email, met me personally at the building/apartment, corresponded with me regarding their application, and then they come to our office to give a deposit. It is pretty easy for them to see we are legitimate by this point. If someone still thinks I am scamming then, then I would not want said person as a tenant.

____

"You can't trust them to follow through on what should take 30 minutes of work or a hundred dollars to turn around, yet they should trust you with thousands in cash? Why not just ask for $50 for a credit check to gauge seriousness? Trust me, this is costing you money. Otherwise serious tenants do walk away based on this as it is sketchy behavior"

As I stated before, I have enough experience to know that yes, people flake out all the time unless they give a deposit. Also, I am not going to spend the time to write the lease, as I have many other things to do (like answer your questions, lol). You want me to ask for $50 for a credit check? HA! I only charge $40, and I often times waive it, to make the process easier. and that credit check fee might mean they are serious about my apartment, but at the same time, people apply to a few apartments. An application with credit check fee is not a guaranty the applicant will take the apartment if accepted. In fact, I accepted someone for an apartment yesterday and I am still waiting to hear back form them, as they were applying to others too (or at least that is what they told me)

____
"Otherwise serious tenants do walk away based on this as it is sketchy behavior."

Asking for a deposit to take an apartment off of the market is standard procedure. I don't know where you live or come from, or what experiences you have had with dishonest people, but if you would like for me to debunk any more of your incorrect theories, let me know. I am always happy to share info...

and FYI, a good place to see what owners own what buildings is http://www.urbansherpany.com

MAV, point taken on putting a deposit to take an apartment off the market if that's what tenants in your market like to do, and I think it's fine as long as you are not forcding it. I don't think "taking the apartment off the market" was thewiseking's situation, just "showing seriousness".

Regardless, I am curious to find out more from you on this. Personally, I've just signed a lease quickly and assumed the apartment continues being marketed and/or the landlord is shopping for a better price if I don't get a lease in my hands within a day or two of having a negotiated price. Most listing brokers are pretty upfront about mentioning that without the lease, there is nothing. I've almost exclusively dealt with one-off landlords.

So long as you're happy to explain, I will ask away. When someone gives you a deposit, is there a contract signed regarding that deposit? Or is there some NY law that governs the situation with some default set of rules? What happens if you back out for whatever reason (you find out the tenant is problematic, you get a better price, you can't agree on some lease term, etc.)? What happens if the tenant backs out? Would whatever you think should be the case stand in court, or is it just "by convention"?

Thanks in advance. I am asking to be educated, not to be snide. I don't understand the legal standing of handing over a deposit without a contract (not saying there isn't one), and unless I understood it, I would never do it personally.

I dont shop for a higher price once I have a deposit. I have 25 buildings to run, not to mention a life of my own, and a conscience. I would never try to screw one person over and risk generations of a good reputation

I don't give out my listings to brokers, so I don't have to worry about any of that BS or pressure from them.

When someone gives us a deposit, they have already signed our application stating that *if* a deposit is given, that it is fully refundable if we back out for any reason, but non refundable if they back out. There have been several cases though where we have refunded at least part of that even though we were under no obligation to...

Don't think you are being snide at all, no worries!