First, last month, & dep (by Sarah [FL]) Feb 10, 2019 8:31 AM|
First, last month, & dep (by cjl [NY]) Feb 10, 2019 8:43 AM
First, last month, & dep (by Moshe [CA]) Feb 10, 2019 9:01 AM
First, last month, & dep (by JB [OR]) Feb 10, 2019 9:15 AM
First, last month, & dep (by Busy [WI]) Feb 10, 2019 9:39 AM
First, last month, & dep (by Vee [OH]) Feb 10, 2019 10:15 AM
First, last month, & dep (by Robert J [CA]) Feb 10, 2019 11:33 AM
First, last month, & dep (by small potatoes [NY]) Feb 10, 2019 12:05 PM
First, last month, & dep (by William [AR]) Feb 10, 2019 2:40 PM
First, last month, & dep (by Scott [IN]) Feb 10, 2019 3:01 PM
First, last month, & dep (by Jeff [CO]) Feb 10, 2019 4:42 PM
First, last month, & dep (by BRAD 20,000 [IN]) Feb 10, 2019 5:34 PM
First, last month, & dep (by Live The Dream [AZ]) Feb 10, 2019 10:46 PM
First, last month, & dep (by S i d [MO]) Feb 11, 2019 5:37 AM
First, last month, & dep (by WMH [NC]) Feb 11, 2019 5:49 AM
First, last month, & dep (by Oregon Woodsmoke [ID]) Feb 11, 2019 7:37 AM
First, last month, & dep (by Wilma [PA]) Feb 11, 2019 8:36 AM
First, last month, & dep (by BRAD 20,000 [IN]) Feb 12, 2019 11:41 PM
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First, last month, & dep (by Sarah [FL]) Posted on: Feb 10, 2019 8:31 AM
Do you collect first month rent, last month rent and deposit up front? Why or why not? It seems that if all landlords did this, there would be fewer skips on last month rent. Your thoughts? --66.87.xxx.xx
First, last month, & dep (by cjl [NY]) Posted on: Feb 10, 2019 8:43 AM
Some states/areas it is illegal - so I'd check your state laws and/or local laws and see if you can even do that (first, last and SD).
I, personally do NOT collect last month. I only collect first and security. My security is typically a little more than the rent amount (again - check your laws to see if you have a max you can charge). I advise them that it is that way so they understand that the last month rent is NOT the SD and we will NOT use it as that. I've had one recently do this and we charged her a late fee for it out of the SD. Yeah, I could have brought her to court but I figured why at this point. She was leaving, I knew it and she was a "decent" tenant overall and allowed us to show the apartment while she was moving out.
I do have a friend that charges first, last and sd - his reasoning is that this way he has the money up front so if they leave, that's great. He also is not in leases - he's month to month only (I'm in leases). In addition, his sd is only a few hundred dollars so it's not a lot of money for his tenants to come up with (it's actually only about another $100-$150 more than if it were my apartment and the move-in funds I have).
If you are doing full months and full sd that is quite a bit of money to come up with. Yes, people have it (some). My daughter just moved to a place that charged first, last and SD. I didn't know this until last week when she had to pay it all (yikes). I guess that's what they do where she is. The other place she had (a few hours away) it was only first and SD. --69.201.xx.xxx
First, last month, & dep (by Moshe [CA]) Posted on: Feb 10, 2019 9:01 AM
I collect SD at signing of the lease, and first month's rent om the first of the fitst month.
Many states have a limit on how much SD a landlord can collect. SD can be used to reimburse LL for any unpaid rent when the tenant leaves, so it is equivalent to last month's rent.
First, last month, & dep (by JB [OR]) Posted on: Feb 10, 2019 9:15 AM
You have much more protection if you are able to get first, last, and deposit up front. The big problem is that it is a lot of money for tenants to come up with. In high rate areas it can be as much as a down payment on a new home. --24.20.xxx.xxx
First, last month, & dep (by Busy [WI]) Posted on: Feb 10, 2019 9:39 AM
if only all tenants had that much cash..... --70.92.xxx.xxx
First, last month, & dep (by Vee [OH]) Posted on: Feb 10, 2019 10:15 AM
In my state you can collect last and a unlimited deposit, I collect a double rent value deposit and first month rent along with pet registration fee before keys are issued. The double deposit was suggested by our long standing housing court judge at the free housing court classes that were held 4-5 times a year, if your court or local landlord group has something like this take off work and attend, knowledge is power and legal fees are the highest hourly pay you find.
First, last month, & dep (by Robert J [CA]) Posted on: Feb 10, 2019 11:33 AM
Most "Americans" live from hand to mouth. Meaning if during a tenancy they have an unexpected surprise, such as an auto repair, then the tenant can either pay their rent and take the bus to work or be late paying for the roof over their heads.
This is the main reason that if an applicant can't come up with the First Months full rent and full deposit you can see the writing on the wall, not going to be a good payer... --47.156.xx.xx
First, last month, & dep (by small potatoes [NY]) Posted on: Feb 10, 2019 12:05 PM
with my most recent listings I made the security higher than the rent so it initiates the discussion that security does not equal last months rent.
In NYC it is common to do 1st, last and security. Upstate tenants don't have the funds. I require 2x security for tenant with lacking work or rental history. Many prospects can't make this threshold, or feel they don't have to and look elsewhere. I will modify my security and make it rent + late fee.
Thanks cjl for that idea! --100.2.xx.xxx
First, last month, & dep (by William [AR]) Posted on: Feb 10, 2019 2:40 PM
That would be nice but in my area it is not common. Many would refuse because they rent elsewhere for first month and SD. --64.250.xx.xxx
First, last month, & dep (by Scott [IN]) Posted on: Feb 10, 2019 3:01 PM
Same as William. Charging last month would severely reduce my pool of applicants. And just because an applicant has a lot of up-front money does not guarantee a tenant will faithfully pay rent on time every month. One of my worst tenants ever paid the SD plus 3 months in advance. After that, he was always late and had to be evicted. --107.141.xx.xxx
First, last month, & dep (by Jeff [CO]) Posted on: Feb 10, 2019 4:42 PM
If you can get away with that it's a sign that you are in NYC, or you're in a low income/low rent area. --76.120.xx.xx
First, last month, & dep (by BRAD 20,000 [IN]) Posted on: Feb 10, 2019 5:34 PM
People don’t have money. RARE that we can collect a full month of rent and a deposit.
Part of our succes: Our minimum to sign a lease is the deposit with a written plan for the rent. 70% of our new leases choose PayDayRent so they just need a week of rent.
Problem: often at the end of the lease residents aill say “Just apply my prepaid last month of rent” but they don’t move out. Or a late payer says “Use my prepaid rent to catch up”.
Toughest: if evicting, the judge can apply the prepayment and let them stay. Watched that happen in court.
First, last month, & dep (by Live The Dream [AZ]) Posted on: Feb 10, 2019 10:46 PM
In AZ the law only allows holding the eqivlent of 1 1/2 month rent. Most LLs charge 1st month and call the entire "last month and deposit" the "Deposit." You get stiffed on the last month anyway, so at least it comes out of the deposit, IF they don't cause over a couple hundred in damages. Otherwise you are behind. --47.216.xx.xxx
First, last month, & dep (by S i d [MO]) Posted on: Feb 11, 2019 5:37 AM
I agree with what everyone else has said regarding:
1) Most folks don't have that much money. You can only collect what your market will bear. NPR had an article this past weekend saying that "over 50% of Americans do not have over $400 in savings to cover an emergency." There is no money to pay first, last, and sec dep.
2) Competition that doesn't require that will get rented while you stay vacant. At some point your loss to vacancy will exceed the amount of extra rent you would have collected, making it a wash and proceeding to turn into a loss. Why collect an extra $1000 when it takes 3 months of losing $1000/month rent? You're still "down" $2000 net income vs. a loss for unpaid rent.
3) As Brad said, extra money gets confusing. Tenant: "But I already PAID you extra..." Doesn't matter what they signed. They'll see you as cheating them. K.I.S.S.
4) State laws.
5) Some land lords (maybe not you) get a false sense of security from a big pile of money (which isn't really THAT big) and allow tenants to slide more thinking, "Well, I've got 1st, last and security....good ol' Joe just needs some time!"
Finally, a thought: "You can't make a leopard change his spots."
What? Did Sid go off the deep end? Maybe....
The point is when you collect 1st, Last and Sec Dep, what you're really saying is you don't trust the person to whom you're renting. My solution is don't rent to sketchy people in the first place. Find someone with a good reputation that they value keeping who has good income and is collectible, and they'll make sure you get paid as agree.
Another saying: "An ounce of prevention (good screening) is worth a pound of cure (extra money)."
P.S. I just posted "Extra Sec Dep" and my logic behind it. Now that I've torn thru your post, feel free to return the favor to me. ;-) This is how we learn and grow!
First, last month, & dep (by WMH [NC]) Posted on: Feb 11, 2019 5:49 AM
I have one tenant from 10 years ago that paid first, last and security. I forget why. Now that "last months' rent is about $250 less than her current rent but it's been sitting in the bank for ten years...seems weird. Also she is not likely to leave our place unless she dies or becomes fully disabled (older lady with heart condition.) --50.82.xxx.xx
First, last month, & dep (by Oregon Woodsmoke [ID]) Posted on: Feb 11, 2019 7:37 AM
I don't think it provides that much protection. The tenant gives notice, uses the last month's rent and then changes his mind and doesn't move out on time and doesn't pay. Or the tenant is short one month (Christmas, usually) and thinks the can use it because it is rent that is already paid.
I don't collect last month's rent but I still get tenants trying to use it. I suppose they think I will forget that I didn't collect it.
All I have to do is to remind them they they didn't pay last month's rent and that I file for eviction on day five. They always come up with the rent at that point. I can get them evicted and their record sullied before their unpaid 30 days are anywhere near used up. --98.146.xxx.xxx
First, last month, & dep (by Wilma [PA]) Posted on: Feb 11, 2019 8:36 AM
I used to, but our market has changed, and pretty much no one collects the "last month" up front. Also, PA law requires that after 12 months, no more than the equivalent of one month's rent be held by the landlord as a deposit (security or otherwise), so that last month's rent becomes month 13's rent. --71.175.xxx.xxx
First, last month, & dep (by BRAD 20,000 [IN]) Posted on: Feb 12, 2019 11:41 PM
WMH makes a great point. I watched the judge say the amount paid for the “last month” was all the res owed even tho the monthly rent was now higher.
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