Last Month's Rent (by Steve [MA]) Nov 18, 2023 11:48 AM|
Last Month's Rent (by Ken [NY]) Nov 18, 2023 11:54 AM
Last Month's Rent (by Steve [MA]) Nov 18, 2023 12:01 PM
Last Month's Rent (by Oregon Woodsmoke [ID]) Nov 18, 2023 12:18 PM
Last Month's Rent (by zero [IN]) Nov 18, 2023 1:35 PM
Last Month's Rent (by Ken [NY]) Nov 18, 2023 3:06 PM
Last Month's Rent (by Jim in O C [CA]) Nov 18, 2023 3:17 PM
Last Month's Rent (by mapleaf18 [NY]) Nov 18, 2023 3:33 PM
Last Month's Rent (by plenty [MO]) Nov 18, 2023 5:11 PM
Last Month's Rent (by DJ [VA]) Nov 18, 2023 5:22 PM
Last Month's Rent (by hollis [MA]) Nov 18, 2023 5:31 PM
Last Month's Rent (by Robert J [CA]) Nov 18, 2023 7:00 PM
Last Month's Rent (by Steve [MA]) Nov 19, 2023 6:42 AM
Last Month's Rent (by BRAD 20,000 [IN]) Nov 19, 2023 8:02 PM
Last Month's Rent (by zero [IN]) Nov 20, 2023 7:38 AM
Last Month's Rent (by Ray-N-Pa [PA]) Nov 20, 2023 7:00 PM
Last Month's Rent (by Steve [MA]) Nov 20, 2023 7:18 PM
Last Month's Rent (by tryan [MA]) Nov 21, 2023 10:20 AM
Last Month's Rent (by Ray-N-Pa [PA]) Nov 21, 2023 12:26 PM
Last Month's Rent (by RentsDue [MA]) Nov 26, 2023 11:33 AM
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Last Month's Rent (by Steve [MA]) Posted on: Nov 18, 2023 11:48 AM
Do you collect a last month's rent?
I have always collected the maximum amount allowed under MA law prior to allowing a tenant to take possession, which is a FMR, a LMR equal to the FMR, a SD equal to the FMR as well as a reasonable key fee (currently I get $100.00).
For those of you who do collect a LMR how do you handle increasing it every year? In the past, I've just required them to pay any additional rent increase when they renew for another year. This week I had tenant move in & am trying something new. On the receipt for their LMR I stated that it was a partial payment towards their last month in the unit. Additionally, I explain that if they stay multiple years & have rent adjustments during the course of their tenancy, we will just apply the amount they have on deposit towards the actual rent for their last month.
For those of you who do not collect a LMR, why don't you?
Last Month's Rent (by Ken [NY]) Posted on: Nov 18, 2023 11:54 AM
Not legal in NY,when it was legal it was not customary and noone would have paid it because they could go elsewhere --74.77.xx.xx
Last Month's Rent (by Steve [MA]) Posted on: Nov 18, 2023 12:01 PM
Ken[NY] as a way around this can you collect more than one month's rent as a SD? --72.93.xxx.xx
Last Month's Rent (by Oregon Woodsmoke [ID]) Posted on: Nov 18, 2023 12:18 PM
I don't quit see the point. It might pay for their last month's rent, or they might give notice, use the "last month's rent" and then refuse to go. So the landlord really isn't any more protected.
I see it as the last month's rent has been paid and whatever the landlord sold that last month for, that is it. If I buy a can of beans on sale for 39 cents and put it in the cupboard, I don't have to pay additional for it if the price in the store goes up to $1. The tenant pays for the last month's rent, it has been bought and paid for. --76.178.xxx.xxx
Last Month's Rent (by zero [IN]) Posted on: Nov 18, 2023 1:35 PM
Around here it is lucky to get first and SD. Trying to get last month up front would take a special applicant.
It is also not something I have heard the others doing, again just talking about around here. --107.147.xx.xxx
Last Month's Rent (by Ken [NY]) Posted on: Nov 18, 2023 3:06 PM
Steve, no we cannot,we can take any 2 of first last and security. Oregon,I agree with you,if they pay me today and use it as last month 5 years from now it is bought and paid for.I would rather take 2 months security than last month and security --74.77.xx.xx
Last Month's Rent (by Jim in O C [CA]) Posted on: Nov 18, 2023 3:17 PM
I go with the first months rent and a large security deposit. I make the security deposit a different dollar amount so the tenant doesn’t think they paid first and last months rent. --146.70.xxx.xxx
Last Month's Rent (by mapleaf18 [NY]) Posted on: Nov 18, 2023 3:33 PM
Ken, According to the horrendous 2019 laws:
"The Housing Stability and Tenant Protection Act (HSTPA) of 2019 limits the amount of a security deposit for any apartment to one month's rent. It is unlawful for the owner to ask for an additional amount of money from the tenant, guarantor or third party." --64.246.xxx.xxx
Last Month's Rent (by plenty [MO]) Posted on: Nov 18, 2023 5:11 PM
This is a good question. It would seem there may be a needed clause in the lease that says the last month rent increases along with the security deposit and due upon renewal. Especially important increase with the increasing cost of labor and materials and inflation and damage left by tenants staying longer. Just a thought. Fair question. What have you tried and been successful with? --172.59.xxx.xx
Last Month's Rent (by DJ [VA]) Posted on: Nov 18, 2023 5:22 PM
Not anymore, but when I did I saw it as a larger security deposit.
I said in the Rental Agreement that the amount of $XX.xx that is paid on this date labeled LMR will be applied to the rent due at the rate in effect at the time that proper notice to vacate is given.
(clean up the wording) --68.229.xxx.xxx
Last Month's Rent (by hollis [MA]) Posted on: Nov 18, 2023 5:31 PM
Well a real estate agent told me a few years ago that a group of lawyers from the Amherst area had formed a company to buy rental properties and they stopped collecting security deposits because of Ma laws that made too many problems even for them to use.
Thats when I started to do the same (and returned the ones I had with a note,) " In these times of tight money, since you have been such a good tenant, we trust you will leave the property clean and free of damages)
If there were enough damages, I would take it to small claims,..
I think the tenants the we returned the SC deposits actually have appreciated this and maybe thats why they have behaved.
Now, we have not had very many move out, so far it has worked,.. --73.159.xxx.xxx
Last Month's Rent (by Robert J [CA]) Posted on: Nov 18, 2023 7:00 PM
In California we have a choice:
First Months Rent Plus a security Deposit
First Months rent and last months rent.
Not all three. --47.155.xx.xxx
Last Month's Rent (by Steve [MA]) Posted on: Nov 19, 2023 6:42 AM
It's interesting to see how LLs in different states address move in monies & what other states allows a LL to collect during what I call the "Honeymoon Phase" aka prior to acceptance & move in.
A couple of things that I should have mentioned are that for both the SD & the LMR the tenant earns interest. During the tenancy the SD is still the tenant's money & remains so until there is a final accounting.
The LMR is considered the LL's money from day 1 & it doesn't have to be put into any special account. However, if the LL chooses not to put the money in an interest-bearing account the LL must pay the tenant 5% interest once the initial 12 months are over and every 12 months thereafter until the tenancy ends. I put all of my LMRs in an interest-bearing account to avoid paying the 5%. Rarely do I have it happen but if a tenant only stays 12 months the LMR deposit is used to pay the 12th month & they get no interest. If they stay longer as most of mine do, they are given the LMR's earned interest at the start of the 13th, 25th,37th, etc months. My tenants seem to stay 5-8 years.
When a MA LL accepts a SD they must follow some very strict laws including giving the tenant a very specifically worded statement of condition, depositing the monies in an interest-bearing escrow account that is protected from any possible LL creditors, the bank / credit union must be located in MA. If the LL fails to completely comply with all of the requirements & ends up in court over it the Judge "shall not may" require the LL to pay treble damages. Unless you're careful it's pretty easy for a LL to mess up the paperwork. I've seen a tenant awarded treble damages due to an incorrect address for the bank holding the SD.
IMO once you have a good system in place for handling SDs & LMRs it's not too difficult to be in compliance.
One last thing in MA we can't collect any kind of application fee. --72.93.xxx.xx
Last Month's Rent (by BRAD 20,000 [IN]) Posted on: Nov 19, 2023 8:02 PM
Why I don't:
-an applicant with first and SD is a unicorn in my area.
-MY judge says he could not evict because the res HAS PAID in advance for the month the LL wants them out. The LL is HOLDING rent.
-I have not collected SD for the last 1000 leases. I collect a Nonrefundable RTO /RentLock Fee in place of a SD. Tougher screening and 2 Minute In Home Visit helps me get better people , plus we stress expectations at move out.
ZERO TOLERANCE on latrs means they don't owe much.
Last Month's Rent (by zero [IN]) Posted on: Nov 20, 2023 7:38 AM
Brad, you only do RTO now?
Interesting. Hard to do in a duplex, but interesting idea. --107.147.xx.xxx
Last Month's Rent (by Ray-N-Pa [PA]) Posted on: Nov 20, 2023 7:00 PM
Steve I do like that you are trying to collect as much money up front as you can. That doesn't always work as well as i would like it.
I had someone well qualified with a 685 credit score. They have been renting in the same building for 32 years. They don't have that extra $1,200 to pay that extra month. Does that mean I should dump them and see if someone else who is as qualified but has that extra $1,200 in hand? Hmmmmmm I am where lake effect snow flies starting early to mid Nov.
I will take the bird in hand - especially around Thanksgiving --24.101.xxx.xxx
Last Month's Rent (by Steve [MA]) Posted on: Nov 20, 2023 7:18 PM
Ray-N-Pa, I completely agree that each LL has to find what works best for them in their location & not be too concerned about what others are able to do elsewhere. MA is similar to NY & a few other states but fortunately it's not as restrictive as CA.
There have been times when I've had to readjust my requirements in order to pay the bills. Fortunately for the last 10 years I've had a waiting list of people who would like one of my units. --72.93.xxx.xx
Last Month's Rent (by tryan [MA]) Posted on: Nov 21, 2023 10:20 AM
I don't collect a SD because the requirements to hold it are prohibitive. Last Months rent is MUCH easier. So first and last is what I get.
This process began after a peeps lawyer called in SD and interest tracking for EVERY account and EVERY peep.
Your results may vary. --198.168.xx.xxx
Last Month's Rent (by Ray-N-Pa [PA]) Posted on: Nov 21, 2023 12:26 PM
Sounds like you run a rather tight ship Steve. A waiting list that long speaks volumes. --24.101.xxx.xxx
Last Month's Rent (by RentsDue [MA]) Posted on: Nov 26, 2023 11:33 AM
I collect 1st, Last and Security also. SD goes into an escrow account and I follow the SD law , every step. I have been to court where an ex tenant tried to get treble damages but they got nothing because everything was done correctly. As far as LMR deposit not being enough because of rent increases, I take the difference out of the SD when they move out. It is allowed because it is technically owed rent. I like your idea of calling it partial deposit. --68.191.xx.xx
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