Typically should this be a red flag for any type of scams or tenant scheme?
I am asking $775 / mo for a nice property, $750/ mo if they tend the yard. Tenant asked for a discount if he pays in full. I offered him a 6% discount so rents would only be $705/mo. Is there anything I should be looking out for?
Something fun to buy?
A friend of mine in my real estate club did just that the people became insane to deal with when trying to evict them the judge would not put them out since they were not behind on rent. He had 4 other tenants in the building move out because of them Even after they were busted for drugs the judge let them stay He got them out 10 months into the lease after a fire from a meth lab. Sorry not saying anything would have been deferent but you pay me each month and every month why not put the $ 8460 in a account and let you draw from it each month.
Bob
I have had tenants pay 5 or 6 months in advance. They did this to simplify their bookkeeping when getting reimbursement for housing from their employer. I gave no discount as we were running full.
I would find out exactly why they want to pay in advance.
This pre-payment made the accountant say, “This house is really profitable!” followed by “You are really losing money on this house!” as 5 months went by with no rent coming in.
FurnishedOwner
I LOVE it when tenants pay me in advance! I have specific clauses in my lease that circumvent the need for lack of payment in order to evict. All of the usual things, like drug abuse/conviction, felony convictions, causing the loss of other tenants, etc. It also covers me not having to pay them back the balance of what would be left on their lease that they pre-paid should they be evicted for any of these reasons.
GooD LucK! :beer
That’s an automatic reject for me on a new applicant.
There is only one reason to offer a full year’s rent and that is to blind the landlord with greed so he won’t check thoroughly on the applicant.
The only exception would be for a student who is paying the rent with grant money. They usually pay all the rent as soon as they receive the grant.
Normal decent people don’t offer to pay a full year. If they have a year’s rent, they put it into the bank and pay every month.
Drug dealers, porn film makers, alien smugglers, and extremely difficult people who can’t ever get accepted and who get evicted a lot, will offer a full year’s rent.
People who don’t want the landlord coming around, not ever, to check on them, offer to pay a full year’s rent.
And think about this: what sort of decent, law abiding tenant has that much cash just laying around?
These are all great ideas to have in a lease agreement. I had no idea of how detailed a lease agreement could be. I am fairly new on this forum but I think this is one of the best threads I have read on here.
Matt,
Could I get a copy of that lease or at least the clause that you are talking about. I have some lease writing software and would like to intigrate that.
Thanks,
Frank