For leases signed electronically: how do you coordinate receiving payment before fully executing the lease?

Question for any of you who handle lease signing electronically: how do you coordinate receiving payment before fully executing the lease?
If you were doing physical signings, of course, prospective resident shows up with payment in hand, and you proceed with the signing.
What do you do, though, if you want to do EVERYTHING electronically? They sign, they pay, then you sign?

I didn’t realize places didn’t do electronic signings! I work in student and we are only online. My company does not even accept any physical applications or leases (like, an accommodation would be required for us to do paper). Basically, what we do is they have to pay the app and admin fees online for us to even see them as an applicant, and then they make any other qualifying payments (we do a prepayment as an option to qualify and no deposit) before we even send the lease/countersign the lease. I have done this in both Entrata and on RealPage products.  I didn’t know that so many places were still on paper as the default! That’s very interesting to me.

We have deposit and first months rent paid at lease signing. If they do not pass background we refund all funds paid. If they cancel within 72 hours, we refund all funds paid. If they cancel prior to moving in but after the 72 hour period we retain prorated days from the deposit for vacancy loss. Once they are approved, then we countersign, proceed with welcome email and move-in procedures.

So, they get the lease sent for eSignature, and they are instructed to sign and make payment (something like this)? At the point payment clears and they've singed, then you countersign?

I think it’s based off the technology and user interface. This is how our system works but we built it ourselves. 1. Prospect applies and inputs all information.2. Applicant e-signs typical screening rights and employment verification authorizations. 3. Applicant is then prompted to pay deposit and first months rent.4. Once processed tenant is then taken to their digital lease to review and sign.5. Once tenant signs. We receive pending application notification, start processing and screening applicationOnce payment clears and they are officially approved we countersign and finalize lease.

Oh, that's really interesting. So they've already paid before approval, wow. Makes sense and easy to refund if they're not approved. I like this and wonder if I can achieve the same thing with our off the shelf product (Buildium)

Doing it this way, you need a protection rider in the lease stating that this lease is not valid unless countersigned, etc. you know the works hahaha

Taylor Hauser just sort of in awe thinking about your process. Do you run into issues with, say, pet rent or pet deposits, or is the system sophisticated enough to charge these in advance, too?

That is separate and after the fact not upfront charges.

Got it. That makes sense to me. As "simple" as that is, it would be extremely difficult to contemplate all the alternative payment arrangements before hand.

I get them to pay deposits, adnin fees upfront and immediately send lease upon approval for them to sign, its a binding agreement. Then I trade keys for payment on move in day. Typically all is paid online.

Can you walk me through the communication that sets this expectation? E.g. "Hey, we're going to sign the lease after you make payment. You will get a link/whatever, you'll make payment, then I'll initiate sending of the lease"

Once approved, we call with conditions. If deposit is needed or not, etc. Then we confirm their move in date. Once confirmed we inform them that their lease will be sent and signed electronically, to check their email. Then I email them their move in charges that are due before or on move in day. Keys will be issued once all move in costs are paid, usually via our online portal.

Thanks, Eric. That makes sense.

My pleasure

We don’t require payment to be made prior to lease signing. Once holding deposits are paid we send the lease for signatures and they just have to pay the move in total via certified funds at move in. No funds no keys. My current company offers a 30 day risk free guarantee anyway so even if they never come show up to move in we just cancel the app and move on. My old company though had a lease that stated failure to move in after signing and executing the lease holds them responsible for the $1500 break lease penalty. Never really had an issue with it.

Our new residence sign their lease electronically before they pick up keys once they pay and pick up keys I counter sign.

Our process is they apply, i screen it, if approved, I send them the link for the security deposit, and the lease. I will not counter sign until the deposit has been paid, and I give them Max three days from approval to paying the deposit and signing.  No issues whatsoever. We use AppFolio so they automatically get a copy on their tenant portal. I will print a copy for their file because my boss likes to have a paper copy but it’s not necessary generally.

The lease does not get countersigned until all funds are secured and the file is checked for accuracy. It is not a legal document until the owners agent has signed it.

Certified funds only day of move in to get keys..

Prior to lease being sent via eSign. We send a welcome letter which will breakdown move in cost and instructions on how to pay move in cost online or in person. Legally in hawaii we can not require tenants to pay prior to move in date however if they opt to pay online which most do, they will have to pay 5 days prior to move in date. After esigning lease, they are then enabled on their portal to pay online. We never take payment without a fully executed lease agreement.

We prefer payment in office, certified funds… however. They sign, we move them in to the system, adjust the ledger if needed then they log in their portal and pay. I see payment come through.

Exactly. Their signature means nothing without an electronic receipt sent by us. AND we sign wet ink, scan and send back.

I managed a national portfolio of homes in 20 different markets across the U.S.. They apply online, get screened, pay deposit, sign lease at least 5 buisness days before move in, 1 day prior to move in we must have in hand the renters insurance, and a cleared the bank payment before I can send the codes to access the homes. We are keyless entry homes. If these don't occur we cancel and move on.

They would need to sign electronically via email or text, but cannot get keys to unit without payment. I am in affordable housing and with my company we do not take deposits or money up front, however to secure the lease and bound them to a contract we will have them sign in which ever way that suits them best but they do not get access to unit until they pay in full. Once you have them bound to that contract you can withhold keys without payment if need be.

They sign, we sign then they pay online prior to keys being issued.