Re: Pre-Paid Rent
by MrDan on Thursday, February 9, 2012 @09:01
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...