[WA] Can I cancel an unsigned lease and rent to someone else after a potential tenant delays signing?

Lexi, Chatbot

Hi. How can I help?

Lexi, Chatbot

I understand that finding the right renter can be a challenging process. What specific issues or concerns do you have regarding your communication with the potential renter?

TJ, Esq.

Hello! My name is TJ, and I’m an attorney with over 20 years of experience. Thanks so much for the opportunity to assist you!

TJ, Esq.

That's frustrating when you're waiting to hear back on something like that. So he's had the lease for three weeks now without signing or getting back to you. Has he said anything about why he hasn't signed, or has he just gone quiet? And what state is this property in? Thanks so much for bringing this to me.

PS: I do my best to keep chats going in real time, but if there's a delay on my end, please don't worry. The chat doesn't close and I'll get back to you as soon as I can. There's no rush on your end either!

TJ, Esq.

Good to hear he’s ready to move forward now. Here’s the thing: in Washington, you don’t have a binding lease until both parties have signed it. Until that happens, there’s no enforceable agreement between you and the renter. (WA Rev Code § 59.18.030) So technically, he could still back out, and you could still decide not to rent to him. The fact that he’s been dragging his feet for three weeks doesn’t lock him in.

Once he signs the lease and you sign it back, that’s when you’ve got a real contract. At that point, he’d be obligated to follow the terms, and you’d have legal recourse if he violates them, like by not paying rent or damaging the property. (WA Rev Code § 62A.2A-204)

The good news is that getting a signed lease is pretty straightforward. You send it, he signs, you sign, and you’re done. Just make sure you keep a copy for your records. If there are any terms in the lease that are specific to this renter or the property, double check those before he signs to make sure everything’s accurate.

One thing to think about: has he mentioned anything about what was holding him up before, or did he just suddenly become ready once he found out about the other renter?

Thanks so much for working through this with me.

TJ, Esq.

Good news that you got that sorted out and the company is now listed as the tenant instead. Here’s what matters legally about the timing and the deal he’s getting:

Lease terms and pricing:
You set the rental price and terms. If you offered him a great deal last month, that was your choice as the property owner. There’s nothing in Washington law that says you have to lock someone in at a lower price or that they can hold you to terms you offered weeks ago if they didn’t accept them. Once a lease is signed, both sides are bound by what’s in it. But until then, you’re free to adjust terms, pricing, or even decide not to rent to someone at all. The fact that he delayed signing doesn’t create any legal obligation on your part to keep offering the same deal.

What happens when he signs:
Once he and you both sign the lease, that agreement becomes binding. At that point, the terms in the lease (rent amount, move in date, lease length, all of it) are locked in for the duration of the lease. He can’t suddenly decide he wants a better deal, and you can’t suddenly raise the rent mid lease. The signed lease is the contract that governs your relationship.

His delay and your other renter:
From a legal standpoint, you were under no obligation to hold the property or the deal open while he thought about it. You can talk to other potential renters. You can accept applications from multiple people. The only thing that matters is who has a signed lease. If he signs first, he’s your tenant. If someone else signs first, they’re your tenant. It’s really that simple.

The company as tenant angle:
Having the company listed as the tenant instead of the individual is actually a smart move on your part. It means the company is legally responsible for paying rent and following the lease terms. Make sure the lease is clear about who’s signing it and what entity is responsible. If it’s the company, the company needs to sign it or have someone authorized to sign on the company’s behalf.

Moving forward:
Once he’s ready to sign, get it done as soon as possible. Make sure you review the lease one more time to confirm the company name is correct, the rent amount is what you want, and all the other terms are accurate. Then have him sign and you sign. Keep copies for your records and his.

Does this answer your question about where things stand legally, or is there something else about the lease or the signing process I should clarify? Thanks so much for using my help on this.