Can a Property Manager Approve Your Lease Application and Then Reject It?
The process of renting an apartment or property involves several steps, including the property manager's approval and the tenant's application process. Often, tenants wonder about the steps a property manager can take and whether they can change their minds after approving an application. In this article, we will explore the factors that can influence a property manager's decision and the legal implications.
Can a Landlord Reject an Approved Lease Application?
Once a lease is signed, it is legally binding unless something was falsified on the application. However, up until that point, the landlord can still reject the application due to various reasons.
Why a Property Manager Can Reject an Approved Lease Application
Information on the application is found to be incorrect.
The landlord finds a more suitable tenant.
An error in the background/credit check is discovered.
The applicant lies on the application.
The applicant has lost their job.
It is important to note that the property manager can reject the application as long as the lease has not been signed by both parties. An approved lease document without a signature is merely an unsigned document and can be easily changed.
Landlord's Right to Reject an Approved Application
Landlords have the right to reject an approved application if there are legitimate reasons, such as fraud or false information. In a scenario where a tenant lies on the application, the action can be considered fraud, and the lease would technically be breached. In such a case, the landlord is within their rights to terminate the lease and may not allow the tenant to take possession of the property.
Lease Terms and Conditions
To protect against such situations, many landlords include specific clauses in their applications. For instance, the following clauses stipulate that any misstatements of facts could result in disqualification of the application, termination of the rental agreement, or forfeiture of deposits.
“Any misstatements of facts in this application will at landlord’s option result in disqualification of application, termination of rental agreement and/or forfeiture of any deposits as liquidated damages and re-marketing fees.”
The Consequence of Rejection After Lease Signing
Once a lease has been signed by both parties, it becomes a binding contract. If the property manager rejects the application after the lease is signed, it is a violation of the lease agreement. In such situations, tenants have the legal right to demand damages and may seek compensation through legal means.
Protections for Tenants
Tenants who find themselves in such situations are advised to seek legal advice from a local Landlord/Tenant Attorney to protect their rights and ensure a fair resolution.
Understanding the legal rights and responsibilities of both tenants and landlords can help prevent misunderstandings and ensure a smooth rental process. It is crucial for tenants to provide accurate and truthful information during the application process to avoid any complications later on.
In conclusion, while a property manager can reject an approved lease application, there are specific circumstances and legal parameters to consider. It is important for both tenants and landlords to be aware of these rights and obligations to maintain a fair and transparent rental process.