Paying in Advance Really

Paying in advance is really becoming a thing?? Brad/20K said he's done two deals like this recently, I've done one, talked to another LL recently who took 6 months in advance...

Like people who now need to write letters to Sellers telling them why they are the best Buyers for their beloved home...and overbidding by 10's of thousands of dollars...maybe pre-paid rentals will really be a thing?

Or will some fool pass legislation against it even though the Renter wants to do it and so does the Housing Provider? --50.82.xxx.xxx

Paying in Advance Really (by Johnny B. [MA]) Posted on: Feb 17, 2021 11:01 AM
Message:

It’s already illegal in Mass. I’ve had existing tenants give me more than a months rent at a time, but we can’t accept more than first, last, and security (equal to one month rent) at move in. Plus a reasonable lock change fee. --73.186.xxx.xxx

Paying in Advance Really (by razorback_tim [AR]) Posted on: Feb 17, 2021 11:19 AM
Message:

I've seen several applicants lately offering to pay in advance, but they were only doing so because they did not meet criteria. Many unqualified prospects use this as a ploy to try to find a desperate LL. I will take rent in advance from a qualified tenant and have done it a couple of times in the past. --70.178.x.xx

Paying in Advance Really (by Dee Ann [WI]) Posted on: Feb 17, 2021 11:43 AM
Message:

Over the years, many have paid in advance by check, dating each check for the first of the month it is for. If it can't be cashed in advance, I would think you can take it. I would not take an unqualified tenant tho. Many of you don't take checks tho. For a busy tenant (hospital resident), I am happy too. It takes me seconds to deposit the check from the comfort of the couch at home. --186.233.xxx.xx

Paying in Advance Really (by S i d [MO]) Posted on: Feb 17, 2021 11:45 AM
Message:

I only take rent in advance if the person has a reason for doing it, such as a student with a lump sum loan disbursement. Shoddy references cannot be mitigate by extra cash: the damages that they can and probably will do will end up costing far more than the prepaid rent.

Missouri LL/T statutes limit us to a deposit equal to no more than 2 months rent. Some investors get around this by giving tenants a lease-option on the unit and take several thousand dollars as the option fee, but they make the purchase price so high that there is no chance the person will ever complete the purchase. Risky for the tenant, if the investor fails to apply the option fee to the rent. --107.216.xxx.xxx

Paying in Advance Really (by WMH [NC]) Posted on: Feb 17, 2021 12:23 PM
Message:

We wrote up a payment plan addendum, stating we were holding his pre-paid rent in escrow and applying X dollars per month towards his rent, and he would pay us the remaining X dollars monthly. To avoid having it look like a fee or an illegal deposit, any unused monies are fully refundable if we mutually agree to dissolve the lease for some reason. Security Deposit, paid and held separately, is handled as usual.

There's more jargon but that's the gist of it.

Would it hold up in court? Who knows? --50.82.xxx.xxx

Paying in Advance Really (by Ken [NY]) Posted on: Feb 17, 2021 12:29 PM
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I cant take it in NY any longer,not saying i wouldnt though --72.231.xxx.xxx

Paying in Advance Really (by Me [CA]) Posted on: Feb 17, 2021 12:53 PM
Message:

We've been getting a lot of those offers lately too. "I need to move in today and I can give you 3, 6, 9... months cash in advance". I call those offers "screening themselves". That tells me that they either don't qualify, are being evicted or aren't even working. No thanks. --47.149.xxx.xxx

Paying in Advance Really (by WMH [NC]) Posted on: Feb 17, 2021 2:04 PM
Message:

I did mine different, ME. I have a guy with a trust fund. Didn't qualify for full rent but has had same job for years now, lived at the place for years, decent kid. Based on his income he qualified for X. I had him pay a full year of the difference between what he qualified for legitimately. He will still pay monthly rent at his qualified rent, I will credit him the remainder from the escrow.

Sort of my own private Section 8 program. :) --50.82.xxx.xxx

Paying in Advance Really (by MikeA [TX]) Posted on: Feb 17, 2021 2:51 PM
Message:

It's happening here but only because the rental market is such slim pickins. I just filled a unit yesterday. I showed it to three different families, all highly qualified, all had been trying to find a decently fixed up place for over 3 months and were starting to get a little desperate. By the time I got home, within an hour, all had filled out their application and sent it to me and had sent a follow up text. I'm sure I could have created a bidding war or asked for a few months rent up front given the shortage for descent housing. I'm pretty sure the government loonies don't realize how they have created a shortage through the moratoriums and the inflation created by handing out wads of cash but I'm sure they will blame us landlords for the outcome. --64.130.xx.xx

Paying in Advance Really (by MikeA [TX]) Posted on: Feb 17, 2021 2:52 PM
Message:

I should have also said that when I showed it it was 8 degrees and snowing cats and dogs but I didn't have a single no-show. --64.130.xx.xx

Paying in Advance Really (by myob [GA]) Posted on: Feb 17, 2021 3:38 PM
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don't give a cr p what the law says or does. We leave no money on a table!!!!!!!!! --99.103.xxx.xxx

Paying in Advance Really (by WMH [NC]) Posted on: Feb 17, 2021 4:29 PM
Message:

This is between me and the tenant. Without this arrangement there is simply no way I would have rented to him, he simply did not qualify. So he is thrilled to have a home, and I am happy to have SOME reassurance he can pay the rent! --50.82.xxx.xxx

Paying in Advance Really (by Robert J [CA]) Posted on: Feb 17, 2021 5:05 PM
Message:

I am one of those landlord who offers a superior product, my rentals have been upgraded and shine. I'm a contractor who takes pride in my work!

So almost any applicant would die to win a tenancy in most of my properties.

When an Applicant has WEAK CREDIT and is boarder line between being accepted or rejected, I voice my concerns -- that as things stand I'll have to pass on them.

THEN THEY ASK ME WHAT CAN BE DONE TO SECURE THEIR TENANCY?

I THEN TELL THEM THAT ANOHTER TENANT OFFERED TO PAY ME 6 MONTHS RENT IN ADVANCE, AND THEN THEY GOT ACCEPTED!

He in this part of California, it is illegal for a landlord to ASK for 6 months in advance, but it is legal for the tenant to offer paying 6 months in advance rent and it's also legal for an owner to accept. --47.155.xx.xxx

Paying in Advance Really (by BRAD 20,000 [IN]) Posted on: Feb 17, 2021 11:46 PM
Message:

FWIW,

My friend with college rentals takes the full year in advance only.

My recent fire was one of our full year payers on a pet free lease. The newspaper article said the firemen were able to rescue his four cats.

We charged his account 4 x $150 Non-Refundable Animal Registration fee and 4 x $35 x 3 months = $1020 for the cats and $1000 for the ins deductible (his cigarette started the fire in a chair.)

We transferred his balance to another rental.

Because he had paid in advance this was a simple bookkeeping entry and not a collection issues.

BRAD --73.102.xxx.xxx

Paying in Advance Really (by Tonia [RI]) Posted on: Feb 18, 2021 6:01 AM
Message:

I was thinking of offering a pre paid 6 month lease agreement with an upcoming opening in spring. Was looking to set up and have the tenant sign off (in advance) a letter for possession on a set date. This way the lease is 1) short term 2) paid in full 3) with a set "end" date 4) with a post dated letter transfer of possession. Of course, I need to research this more but I do not want long term rental at this particular location, and with the eviction moratorium keeps extending, etc.. --172.56.xx.xxx

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