Rental agents are not only for advertising properties and helping the landlords look for tenants. It is not that simple. Part of your job is acting as a mediator in a landlord-tenant relationship and thus includes discussing and finalizing the lease agreement. After both parties agree on all the terms stated in the contract, who should sign first? Is it the landlord or the tenant?
Some might say the landlord, and some will agree that the tenant should sign first. I say the renter should, and do you know why? Let me enumerate some of the reasons.
• Multiple signed leases
Multiple signed leases might happen if the landlord sends a signed contract to the tenant, and they do not immediately return the document. Some landlords will assume that the tenant is no longer interested, and they will move on to sign with a new one. When the first tenant mails back the signed lease agreement, the landlord is left with two signed contracts.
The landlord must make sure that a tenant will sign first before him to avoid this kind of problem.
• The landlord’s signature will finalize the contract
The landlord or his lawyer creates the lease agreement. So, it is better to have the tenant sign it first to make sure that he agrees to the terms. The landlord’s signature will officially make the contract binding.
There is a possibility to have a contract voided as long as the tenant has not moved into the property. Some tenants might not be able to pay the initial rent and security deposit. It is easier to void the contract early rather than go through the eviction process after they moved in.
• Common Practice
In the rental business, the tenant is the consumer. They pay the required amount and have a place to stay in return. The standard practice in this industry is to have the tenant sign the lease agreement first.
• Sense of Urgency
Like I’ve said, the landlord’s signature will finalize the contract. Letting them sign first will convey a sense of urgency. They will know that if they do not sign the contract immediately, they could lose the opportunity to rent the property.
If the landlord signs before the tenant, they are likely to delay returning a signed contract because they are assured that it is a done deal.
• Avoid changes in the lease
Some tenants may try to add or change the terms in the lease agreement, and if the landlord has signed it before them, it could cause a problem. If the tenant signs the contract first, the landlord can go over the document and verify that there were no alterations done.
To prevent this from happening, the landlord can try to let the tenant sign the contract online because the contents of the document cannot be easily changed, and the tenants can access it anytime.
• Correct name on the lease
Aside from making sure that there are no changes in the contract, letting a tenant sign will also verify the correct person. The landlord can’t screen someone only to have a different person sign the contract.
The next time you discuss a lease agreement with a tenant, remind them that they will have to sign the contract first. It will make things easier for the landlord.
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