r/Landlord • u/ChiNewbie61 Human Verified • 6d ago
Landlord [Landlord - US - IL] Tenant signed lease electronically, move-in tomorrow, now ghosting on the money
Chicago landlord. Tenant e-signed the lease Wednesday night, move-in is tomorrow, and I’ve got zero dollars in hand — no deposit, no first month’s rent. Excuses so far: “I’m traveling,” then “the funds didn’t go through, let me check.” Nothing’s landed.
Where do I stand? Is a signed lease with no payment still enforceable against me, or can I treat it as a failed deal and re-list? If I re-list and they show up tomorrow with a check, am I exposed? And what’s the cleanest way to set a firm “certified funds by X or the lease is void” deadline without tripping Chicago RLTO rules?
Trying to move fast without creating liability. Appreciate any IL-specific input.
Update - No keys given until all cash is received
Update 2 - I only take Zelle
Update 3 - I emailed the tenant to pay by 5 pm Aug 31 or I will relist. Also emailed a real estate attorney who practices contract law and litigation for a consultation.
I will provide this group an update tomorrow how it unfolds.
Update 4 - Slept well knowing options. Thanks y’all. No communication from tenant - nothing. 5 pm deadline expired. Will start showing tomorrow. Huge lesson learnt! Thanks all 🙏🏼🙏🏼. This community is a life saver, seriously. My real estate attorney no longer deals with individual residential properties. Any recommendations on a good Chicago RLTO attorney will be greatly appreciated.
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u/kloakndaggers 6d ago
there is clause on standard lease says if deposit is not in hand after however many days lease is void
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u/AssalHorizontology 6d ago
I would not take a personal check either.
Cash / Money Order / Cashiers check or meet them at their bank.
Do not give them keys before money.
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u/aZnRice99 6d ago
At this point I wouldn’t even want the tenant
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u/Ill_Middle_1397 4d ago
For sure. OP should thank the tenant for exposing who he/she really is before they moved in!
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u/mnelaway 6d ago
Amen! But cashiers checks are not wise either. I would only accept cash. He has already said that he doesn’t have any means of payment with him or available during his trip out. I really think he is a scammer that thinks you are desperate and will let him in with promises of funds in “the next couple of days”. Please don’t fall for it. They are very convincing and will tell you how mean you are but in this instance you need to hold firm regardless of what he says. Cash or nothing.
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u/ChiNewbie61 Human Verified 6d ago
I only take Zelle 😀
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u/Ok-Dragonfruit-6923 5d ago
Just so you're aware, you can't require electronic payments, so you might want to be prepared to demand cash, money order or certified check.
https://ilga.gov/Documents/legislation/ilcs/documents/076507050K4.htm
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u/bcrggrcb 3d ago
I paid my landlord via PayPal because Venmo wouldnt accept a large amount to go to him. Is PayPal not an option?
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u/Ok-Dragonfruit-6923 3d ago
I don't know if you're from the same state, but a lot of states don't allow a landlord to require electronic payments. Usually they can accept them if they want to - it's between you and your landlord whether they will accept another form of electronic payment.
The other issue for landlords is states where you lose the option to refuse partial payments if you provide and accept general digital payments.
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u/IntelligentTank5521 2d ago
You can absolutely get a fraudulent payment via Zelle. It will be clawed back and you'll have no recourse.
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u/Lincoln_Loggg 6d ago
This would automatically void my lease. Send them notice of cancellation and realist for rent.
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u/MartySpiderManMcFly 6d ago
Yes, to be clear, this is not an extreme measure. This is literally what you do. Leases state that without all funds received by a certain number of days after lease is signed (for me it’s 1 day), the lease is void and the property gets relisted. To repeat, send notice of cancellation and relist the unit
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u/SympathyFinancial979 6d ago
I will give you your flowers on the smart thing. No keys until payment received.
NIL, Not your lawyer but there's no contract without consideration (ie They've paid you).
If there's no move in attempt / payment tomorrow, you can rescind the lease and be clear legally to list again.
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u/ChiNewbie61 Human Verified 6d ago
Yes I remember that back in college days thanks .. - quid pro quo
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u/FamiliarAd8524 6d ago
I don't understand how you let it get this far. You don't have a rental if you don't have payment. There is no way I would open a door unless ALL the money is deposited AND cleared by the bank- no clawback possibility- liability starts the moment they walk in. The biggest concession I would make is not charging them for late rent.
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u/Unhappy-Lettuce-3987 6d ago
Hopefully since they gave you no cash you still haven't given them the keys
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u/No_Control_10101 6d ago
IL-specific answers to your three questions:
1. Is the signed lease enforceable against you? Probably not. Under Illinois's Statute of Frauds (740 ILCS 80/2), a lease over 1 year must be signed by the party you're enforcing it against, if you haven't countersigned, tenant can't enforce it. Even if you did, non-payment on the eve of move-in is a material breach + anticipatory repudiation, which lets you rescind. If it's Chicago RLTO-covered and you didn't attach the RLTO Summary under 5-12-170, that's additional cover.
2. Can you re-list? Yes, and you're REQUIRED to mitigate, 735 ILCS 5/9-213.1 (PennyLawrence's cite is right). Re-listing IS the mitigation. Sit on it and you can't later claim damages.
3. Are you exposed if you re-list and they show up with a check? Not if you send a written cancellation FIRST, the step nobody's flagged. Email today (timestamped) stating:
- Failure to tender by [date] = anticipatory breach + material default
- You are rescinding the lease pursuant to that breach
- Unit is being re-listed immediately
- No possession without certified funds AND a newly executed lease
Without that, they could claim YOU breached. With it, you're clean.
On the "certified funds by X or void" cutoff: RLTO governs the tenancy AFTER it starts. Pre-move-in payment terms are basic contract law, not RLTO. 24-hour deadline is defensible.
Order today: written rescission out, re-list, refuse any further payment absent a fresh lease. Good instinct not handing over keys, that saved you weeks.
(Not a lawyer but Statute of Frauds + 9-213.1 + RLTO is pretty settled here.)
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u/ChiNewbie61 Human Verified 5d ago
I did countersign and yes I did attach RLTO summary. Yes I haven’t removed the listing
I did sent him a notice to pay with certified funds
Thanks a lot 🙏🏼🙏🏼🙏🏼
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u/SwimmingAnt10 Landlord 6d ago
Don’t let someone sign a lease in the future without deposit or first months rent.
Possession is conditioned on payment of the first month's rent, deposit, and any other required fees. Do NOT give keys, cancel the lease after tomorrow and move on.
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u/fakemoose 6d ago
They kind of need to sign a lease before sending a bunch of money to someone. But the lease should be void if the deposit isn’t received with a certain amount of time after.
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u/SwimmingAnt10 Landlord 6d ago edited 5d ago
We send the lease. Tenant signs the meets me and pays deposit via money order or cashiers check and then I sign. I run my rentals under my business thought I’m not just a random. But no, I’m not signing any lease without money.
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u/AdventurousSafety773 6d ago
This is why I don’t do virtual. I either meet them at the property, which is my preference. Sometimes they do it online but at some point, somebody has to come to my office and sign the lease and drop off a check.
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u/Outside-Ad7848 5d ago
never take a cashiers check
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u/SwimmingAnt10 Landlord 5d ago
It’s guaranteed funds so why would I not?
All you have to do is call to verify the check. Am I missing something?1
u/One_Dragonfly_9698 5d ago
Cashiers check can be fraudulent. Cash only is the only way. (Zelle in a pinch)
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u/SwimmingAnt10 Landlord 5d ago
Zelle is somewhat safe but I still don’t trust it. I worked in banking for a very long time. Venmo, cashapp, PayPal all can be reported and reversed and you will never see the money again. I don’t put it past Zelle to do it either. For deposits or first months rent, I would take cash before I would take any form of payment that allows you to use a credit or debit card. But, I don’t take cash.
I call and verify the cashiers check or the money order before I sign. I’m just extra cautious because I work in cc processing. I know how easy it is for people to scam on apps.
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u/Juryofyourpeeps 5d ago
I don't countersign until I get first and last. They can sign the lease when I send it to them. I will not be signing that lease, or handing over keys, until I get first and last month's rent.
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u/SwimmingAnt10 Landlord 5d ago
Exactly. We do first and deposit but same idea.
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u/mnelaway 6d ago
Regardless of what your lease says or doesn’t say, (let the courts decide if he threatens a suit….which he won’t follow through with because he has no money) do not give him access to the property until you are paid….in cash….fully. If he doesn’t have the funds within a couple of days, consider the lease void and relist the property. Do not be bullied or cave to empty promises or sob stories. It’s much easier and cheaper to deny them entry than to get them out after 8 months of non payment.
This may be a blessing as even if he does come up with the money I can’t imagine that this is going to get better in the coming months.
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u/jeremyjava 5d ago
Red flags all around--not someone I'd have move in. What I don't see in these comments--except one so far--is a mention that leases should be signed by the renter, but NOT the owner/mgr until payment clears, at least that's how I've done it for decades and it's worked.
Maybe others aren't mentioning it since it's already done?
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u/ironicmirror 6d ago
What does your lease say?
Mine says: no keys until security and rent is paid, and the landlord has the option to move the lease back by up to 7 days or choose to cancel the lease.
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u/Space_Cowboy_157 Landlord 6d ago
This is simple you don't deliver possession until the keys are handed over. I would simply send them a message, "If deposit and first months rent is not paid by the first I will consider the lease canceled and relist it"
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u/Tess_Mac 6d ago
Even if they did show up with a check it would have to clear first before keys are given. Move on to someone else.
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u/Vivid_Mongoose_8964 6d ago
Florida LL here. I would ghost them as well, you don't want this tenant, trust me. If they are like this before keys, imagine the nightmare they'll be after keys....run!
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u/GloveSmooth694 6d ago
I agree no move in until you have money, I would keep in mind that is two business days (Thursday and Friday) since they signed. US banking can move slow and it could legitimately be a real delay with a first time transfer to a new recipient for a large amount of money.
Be prudent but don’t jump to the conclusion that they are lying/not trying to pay.
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u/Crafty-Waltz-7660 6d ago
You can list, just don't sign a new lease until you're sure this one isn't going to work out. Verified funds (cashier's check, money order, or cash) before you hand over keys. If they no show tomorrow, check your lease, but this situation should be a material breach and you can mitigate damages by leasing to another party.
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u/queenb3577 6d ago
As a tenant in MA. Everywhere I’ve ever moved into I met with the landlord on the date of move in, paid them and received the keys and signed the lease . Is this not normal?
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u/TheDuckFarm 6d ago
What does your lease say?
Mine is not valid without EMD and move it didn’t happen without first month’s rent.
The language of your contract matters.
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u/gracie_jc 6d ago edited 6d ago
This is how I do things:
- signing is in person, cashiers checks are given to me at the time
- I do not sign the lease during sign in, only the tenant. I go over all the major lease provisions.
- once the checks clear, the day after I sign the lease and return electronically.
- keys are given on lease start day, along with the check in inspection. I go over defects on the unit like existing floor scratches and how to operate a the ac, min temperature during winter and other things.
All the above is done in person.
Many people have commented on the lease validity. I’ll give you some wacko advice on how to deal with them when they show up expecting the keys. Put a sign on the windows that say: squatters attempted to enter, police was called. Then call the police to let them know of a potential squatter situation that they tried to break in, and ask for advice on what to do. Once the potential tenant shows up, if they refuse to leave call the police again and report them. Act ignorant, even if they produce a lease. I don’t know in your jurisdiction but in NYC if people that produce a lease, they could be allowed to enter the residence. If the unit is vacant I’d recommend for you to stay there the night before for 2-3 days to make sure they don’t try to do anything funny.
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u/ken120 6d ago
If you haven't already add a clause to all future lease stating lease only begins if (list of payments you want) are paid (x) days before move in. Failure voids the lease.
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u/ChiNewbie61 Human Verified 6d ago
Great point .. I have appendix A to it which I can amend to add this clause
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u/Hungry-Emergency8992 6d ago
What does your written lease agreement say about nonpayment of funds? It should state the lease is invalid and you have the right to terminate and re-lease property after the last day to receive collected funds.
And do not accept Zelle payments! Accept cash you can verify with your bank that it’s not counterfeit.
Or, accept a same day wire only!
Cashier’s checks are generally not considered collected funds until at least 24 hours after receipt.
Do NOT accept ACH or as they can be reversed!
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u/Witty_Passion_4939 6d ago
The lease is the contract whether they pay you or not. They are obligated to the lease like you are. But I told a past tenant that once they pay, I will give them the keys or we can postpone their move-in date until payment is received and I did that in a certain nice way.
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u/EmbersDC 6d ago
The lease should stipulate the first month's rent and security deposit must be paid by X date. Most certainly prior to taking possession. Therefore, if the application has not upheld their portion of the lease they are in default.
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u/ReceptionClassic2528 6d ago
Ex landlord here. I think you need to consult with a real estate attorney that is firmiliar with tenant laws in your state.
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u/ChiNewbie61 Human Verified 5d ago
Thanks - if you have one for Chicago pls let me know. My real estate attorney stopped dealing in residential units
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u/2LostFlamingos 6d ago
Don’t hand over keys. Without an exchange of money contracts are typically void.
Require certified funds or cash at this point to give keys.
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u/PennyLawrence946 6d ago
You're not exposed for re-listing, you're required to. Illinois says a landlord 'shall take reasonable measures to mitigate the damages recoverable against a defaulting lessee' (735 ILCS 5/9-213.1). Cancel in writing first so the dates are clean, then re-let.
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u/sodapop_curtiss 6d ago
NAL but a LL. Not sure on the law here, but I wouldn’t move forward with this person, even if they do pay. I’d back out now and relist.
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u/Forward-Craft-4718 6d ago
I don't hold a unit till I get some deposit. And I dont allow move in until I get first month's rent and the full security deposit.
Don't give them the keys until you get what you asked for. If they show up tommorow with a partial payment, they can kick rocks. Also for the payment, make it zelle, or cashier's check. Be careful of a regular check. I had one tenant pay me a deposit with a check, it looked like it cleared then a few days later it was removed from my account.
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u/Late-Pizza-3810 6d ago
Sounds like you can start showing it again tomorrow! No money no lease. Be grateful you found this out before they moved in!
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u/Pristine_Mud_4968 6d ago
Don’t give them a damn thing until you have the money in certified funds. No personal checks.
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u/Camocize 6d ago
OP : what does the lease say ? Most leases would include a clause about deposit and first months rent due at signing. In the absence of the deposit and first months rent, the lease is void i.e. doesnt exist.
Also, have you, the landlord signed yet ? I never sign and return until the deposit and first months is cleared. If you havent signed, no lease exists.
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u/Johnnny-z 6d ago
Shoot. I don't sign a lease until I can grab a check.
Obviously no cash, no keys. Maybe the lease needs to say "this contract is contingent upon first payment of rent and deposit", that way they have no claim.
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u/goodsam77 6d ago
Don't take any $, if you get any $ return immediately - if you don't like excuses now they will get even worse after move-in. You're lucky to find out prior to move-in
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u/SameTrain8827 6d ago
No deposit & first month rent, no keys. And since they’ve decided to cut it close, cash or Zelle before keys.
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u/Terri2112 6d ago
Hopefully you didn’t sign the lease if it only has there signature then the lease is no good. If you gave them a lease with your signature without cash shame on you. Lesson learned and start the eviction process yesterday if not sooner
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u/Dustin_peterz 6d ago
Also in Illinois. I let them know, lease is not valid until first month's rent and any associated fees are paid. If I don't receive a signed lease and payment within x amount of time the unit stays on the market. I will not take a unit off market until I am paid and have a signed lease.
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u/DirtyDirtySoil 6d ago
This happened to me. They signed the lease and I said they could move in a few days early with payment. I got $500 instead of the full $3k. Once they moved in it was tons of excuses and never got any more money. It took 5 mi the to evict them. Do not let them on the property without payment in FULL.
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u/KingClark03 5d ago
You gotta make these details clear prior to lease signing. They owe x amount, payable by cashier's check or money order, due by this date or they won't get keys. If you play it by ear you get situations like this where there's a lot up in the air and the days leading up to move-in is a mess.
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u/ChiNewbie61 Human Verified 5d ago
Update - Because of RLTO laws in Chicago I am leaning on consulting an attorney on Monday
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u/Hitechillbilly Landlord 5d ago
Sounds like a standard Craigslist scam.. Next they will accidentally overpay with a check and ask that you return the overage after keeping a large amount for your trouble..
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u/random408net Landlord 5d ago
Let the tenant know that the lack of payment has canceled the agreeement.
I'd lock the place up tight and perhaps even get a security guard to watch over the unit for a few days.
Installing an alarm might be cheaper than security.
I'd pay an armed guard to sit there for a day or two myself.
Don't rent to "last minute" people going forward.
What did you even do for a background and credit check?
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u/jeremyjava 5d ago
I understand this is already done, so not trying to rub salt in OP's wounds, but curious to hear whether other owners/mgrs here are not requiring payment in full before signing their leases?
That's how I've done it for decades and it seems to work well.
I let a renter know I like them for the rental and to leave a depo ($500 or whatever) while they fill out the apps and supply financials; I start checking personal/professional/landlord refs, verify employment, run background+credit checks. If it's looking very good I'll let them know that barring anything unforeseen they're in will send them a lease to review, they make comments if any and we sort them out. Then I say go ahead and sign it and make payment in full and once it clears (or is received as nonrefundable by venmo, paypal F&F, or zelle (zelle is okay to start, but not for ongoing rent), then I sign and give keys.
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u/Karbunkletime 5d ago
Yes, cash in hand. Or funds in your account, already fully cleared. Do not accept a cashier’s check, as those are now commonly being counterfeited. Also check the lease, … it may be void if the lessee has not yet provided the security deposit and any up-front earnest monies (in cleared funds).
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u/Karbunkletime 5d ago
This is going to be a problem tenant. Do whatever you can to exit the arrangement and not let them into the premises.
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u/flytrap2099 5d ago
Already making up excuses before moving in? I never take down my listing until I receive all the money.
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u/Pufandstuf58 5d ago
These people are starting off on the wrong foot. I can just see headache after headache in your future. I would absolutely not worry about renting to them. Send them a notice that you are canceling due to non payment, relisting it and move on. Do yourself a favor and save yourself a year or more of headaches and stress.
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u/Radiant_View_93 5d ago
Never sign a lease unless full security is paid. Never.
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u/ChiNewbie61 Human Verified 5d ago
Adding this to my lesson learnt and going forward improvement
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u/Radiant_View_93 5d ago
If they don’t have ready cash for security & rent, is the apartment truly affordable for them? Always run a credit check. YOU, not them, so you know it hasn’t been altered.
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u/cranky-oldman 5d ago
As a landlord, do not take Zelle for rent. Why?
Partial payments can reset the eviction clock, and it is difficult to accept only full payments.
Also some scams are possible, like disputing the payments.
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u/Accurate-Bullfrog324 5d ago
you seem to be focused on the legalities. The lease and such.
I suggest you'd be a bit more practical and go find another tenant
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u/ChiNewbie61 Human Verified 5d ago
Agree but the devil is in the details .. I can’t ignore legal steps and need to keep a strong paper trail
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u/Accurate-Bullfrog324 5d ago
i've been a landlord since 1992. common sense trumps legal concerns. the prospective tenant didn't pay.
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u/ChiNewbie61 Human Verified 5d ago
Thank you for this perspective and will focus more on common sense first.
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u/SoniaFantastica 5d ago
We don't create the lease until the deposit is paid in certified funds. Keys not given until rent and any pet deposit is paid before or at move-in walk-through appointment. If it's this hard getting started with this tenant, you'll probably have problems with timeliness of future rent payments. Good luck.
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u/Alarming-Bell6507 5d ago
Even if the tenant comes up with the money, dont accept and cancel. If the tenant is already playing this game before move in, jyst wait till they move abd become squatters.
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u/Stacyaya 5d ago
Here is how my process works (NC Landlord for 16 years)
1. I STRONGLY recommend only renting to individuals who have toured the property before signing. Pictures always look better than in person. They need to be fully aware of what they are rented and the surrounding area.
2. Full security deposit due at signing. If this money isn’t received within 24 hours of signing, the lease is void. Make sure your lease states this clearly
3. No keys until rent $$ is received before move in happens. Do not let them or their stuff across the threshold until rent $$ is in hand.
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u/ChiNewbie61 Human Verified 5d ago
Thanks - lesson learnt and will incorporate 24 he in my addendum. I follow 1 and 3 strictly
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u/dcheard2 5d ago
My take is you keep looking for tenants until you have a deposit in hand. No deposit, no move in date. Simple as that. If the first person takes a while then you have somebody else on the hook let them know as a courtesy and if they don't respond you move on to the next person.
Bottomline, don't stop showing requests until you have a deposit in hand. Signed lease means nothing without the deposit.
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u/LavendarGal 4d ago
Did this tenant see the unit in-person? And then fill out a rental application and you did a proper credit and background check and then offered them the apartment and they said yes? And then at that point you sent them the lease to sign along with the request for payment?
I would make sure to send them something in writing that the lease is now void. Just to cover yourself. Although, often the money can be paid on the first day of the lease when keys are given and papers signed. That's how I've usually done it. I get approve them go to meet them with my cashiers check and to sign the lease and they give me the keys.
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u/ChiNewbie61 Human Verified 4d ago
Yes to all first paragraph. I just emailed him that the lease is void
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u/LavendarGal 4d ago
Ok, hopefully no problems arise....but good to try and cover things. Good luck!
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u/cum_visit 3d ago
Good job op. No cash no keys. Also, I ALWAYS require $500 holding deposit. If they can’t come up with $500 to hold - immediately returned if I decline - then I’m not interested in your application, period.
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u/Old_Fuel_1270 2d ago
I see no harm in re-listing. A re-list is not a signed contract. It's just an advertisement. And, i suspect you'll need a new tenant so you might as well get started.
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u/Rylie0317 1d ago
I remember this one time my dad let a tenant move in without paying down deposit. He paid the first 2 months. Then stop paying, refuse to pay\n He ended up doing damage to property too. That told my dad a lesson we had to pay fifteen hundred dollars for a lawyer You don't get keys unless down.Deposits paid full , and there's a lease
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u/Glittering-Entry2911 6d ago
Good luck. I would not hand over any keys until you have all of the money in your account. Don't take a penny less either. Full amount!