You’ve accepted a tenant, taken the listing down, and started prepping the unit only to find out they’ve changed their mind. What now? Whether or not a lease was signed, there are steps you can take to protect your rental income and move forward quickly. Here’s how to handle the situation depending on where things were left off. WHAT HAPPENS WHEN A TENANT BREAKS A LEASE BEFORE MOVING IN IF THE LEASE WASN’T SIGNED If a tenant changes their mind before signing the lease, the rental agreement isn't legally binding in most cases. A verbal promise to rent an apartment is usually not enforceable, especially for lease terms longer than one year. What you can do:
• Re-list the unit immediately.
• Reach out to previous applicants who may still be interested.
• If you accepted a holding deposit, you may be able to retain a portion to cover your actual costs (such as lost rent or marketing), depending on your state’s laws.
Note: Some states require landlords to refund holding deposits if no lease is signed, minus documented costs. Always check your local regulations.
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