Pre-Paid Rent - Landlord Forum thread

Pre-Paid Rent by Anonymous (Nevada) on February 9, 2012 @01:06

A prospective tenant has asked for a discount on the rent and, in exchange, offers to pre-pay six months of the annual lease term for my single-family property. Are there any downsides in accepting a six-month rent prepayment?

Thank you.

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Re: Pre-Paid Rent by Ron (Tx) on February 9, 2012 @01:30	[ Reply ]

I Have one tenant that paid a years lease in advance.However his company was paying the rent and he past a criminal and credit check.I did not give any discount.I'm in the landlord business to make money.I would not loose money to let a criminal live in my rental.

Re: Pre-Paid Rent

Re: Pre-Paid Rent by MrDan (Georgia) on February 9, 2012 @09:01	[ Reply ]

You may need to check your State law as some States (Florida) require the prepaid rent to be deposited into the same account as the security deposit. You are also restricted to withdrawing the rent from the account as rent is due. You might consider what happens if the tenant leaves early breaking the lease, that you can not use that prepaid rent for damages until that portion of prepaid rent is due. A 6 month lease where the entire 6 months rent is payable in one lump sum might be better for you. Then you will know if the tenant is worth renewing 6 months from now. Just some thoughts to consider...

Re: Pre-Paid Rent

Re: Pre-Paid Rent by Jack Klein (NY) on February 9, 2012 @10:05	[ Reply ]

I've done it and luckily never had a problem. I have one tenant who pays quarterly. Another former tenant paid 6 months at a time. They wanted to make sure they got their early payment discount every month and had the money anyway.

Re: Pre-Paid Rent

Re: Pre-Paid Rent by Abdon on February 9, 2012 @17:57	[ Reply ]

The _BIG_ question is why they want to do that. Sometimes it makes sense. I'm overseas on a government contract. Some companies are willing to pay a year worth of lease in advance. Chances are there are student grants and other work arrangements that have something similar. To edge your bets you really don't want to spend the money ahead of time.