She is a current tenant, yes. In fact, I would tell her she can pay as much in advance as she would like and that you can both sign a new lease to extend to that amount of time.

I would also suggest putting the monies in a separate interest bearing account. This will help you keep track as well.

"Should I accept this payment?"

I do not agree with Ken's approach. For me, the lease will remain as written, and if the tenant is on a month-to-month after completing the original one-year period, or is X months into the current lease, the tenant can terminate upon proper notice and I will refund any unearned rent.

I have a tenant who pre-pays six months at a time. She is a mother whose children were minor children when the family moved in. She is now a widow, all of the kids have moved out and one of them (maybe they all contribute?) pays his mom's rent in advance every six months. She is on a M-T-M, and she is free to move out with 30 days notice. I'd hate to see her leave, because the unit is kept spotless. Middle-aged widow lady, so there is very little wear and tear, except she does have young grandkids who visit.

I like the idea of keeping the tenant paying something every month to help the tenant remember that rent has to be paid every month! But all I do with my pre-paying tenant is to call after five months to remind the son that rent is due again.

I've had several tenants that were forced to file for Bankruptcy. They "list" the advanced rental payment as an asset. The Bankruptcy court demands you turn over advanced "Rent", plus the "Deposit".

I accepted a year's rent in advance. They knew they would blow thru the funds.

Unfortunately they were asked to leave after a couple months.

I would do it again but with more stipulations as to what they get back if they leave early.

It depends.

Yes, if she is an established tenant who is a good tenant and reasonable to work with.