What Happens if You Complete a Rental Application but Don't Sign the Lease?

If you've completed a rental application but haven't signed the lease, you might be wondering what you're legally obligated to do. In many places, without a formal lease, you might still be considered a tenant, particularly if you're paying rent and living there. So, what are the potential outcomes if you find a cheaper or better place after completing your application?

The Elements of a Contract

Recall from your Business Law class from 50 years ago that a contract consists of three elements: Offer, Acceptance, and Consideration (payment).

In the context of renting a property, the landlord has offered the property to you, but you haven't yet accepted by signing the lease. If no payment has been made, there is likely no enforceable contract. Even if you had signed but didn't pay anything, there might not be a valid contract.

Thus, your rental application doesn't tie you down to that specific place. You are still free to look for other rental options.

Your Rights and Responsibilities

While you can freely explore other rental options, it's courteous to inform the landlord of your decision as soon as you've made up your mind. This not only respects their time and efforts but also allows them to continue their search for potential tenants. Being upfront and honest with the landlord shows your respect and professionalism.

If you've made any payments or deposits during the application process, it's advisable to inquire about getting that money back. It's fair to reclaim your rightfully earned funds. Many landlords will refund the application fee and, if applicable, the deposit, but you should check the terms of your application.

Conclusion

Until you sign the lease, you're free to look for other rental options without any contractual obligation. However, it's always a good practice to communicate your decision to your potential landlord. This ensures a smoother transition and prevents any misunderstandings. In the meantime, you might lose any deposits you've already made, but if you haven't signed anything, you should be in the clear.

Remember, being transparent and courteous throughout the process helps maintain a good relationship with potential landlords and sets the stage for future opportunities.