Tenant Wants To Prepay Rent!
Tenant called today and said that he will be a week late with the rent, but will pay the late fee. Also, and this is interesting, since his wife is selling the house, he wants to prepay 6 month worth of rent.
Are there any drawbacks to that?
There is a potential drawback. If the tenant proves to be a nuisance to the neighbors, there is a possibility that you may be held liable for certain issues.
If the rent is prepaid, it is difficult to evict early if you need to. (Also, you need to have your lease contract include a clause that allows eviction for nuisance factors anyway). I doubt this is something you'd run into, but it is a potential drawback.
Well, at least you'd have the money in your pocket! If you can keep your records straight, then I wouldn't think it was too bad to have that, but think about these questions:
Is the tenant a long-term tenant? Are they good tenants? Are they on a lease or month-to-month? Do you have a history that would indicate that you won't have problems with them? If you accept the money, then you probably won' t be able to get rid of them 'cause you will be locked into a contract with them for the duration, unless, of course, they do something blatant that is specifically identified in the original contract as a no-no.
Geez ... a tenant want to prepay the rent .... OOH, OOH TAKE THE MONEY AND RUN.
Property Management companies ask for prepaid rent on questionable tenants all the time.
Brenda
I agree with Brenda. A tenant who wants to demonstrate that he is responsible should be given the chance.
Your local laws may handle this situation specifically, but you could add a clause to your rental agreement that addresses how prepaid rent will be handled in the event of early termination of lease by the tenant, eviction, etc.
I'd take the money and run. Remember the golden rule. He who has the gold makes the rules. It's always easier to give money back than to get it from someone who owes it to you.
Hey,
I think the tenant is lying his butt off to you; there is no 6 month rent pre-payment coming your way. But, I never believe tenants until I see it.
So...
If the money does show up...OHMYGOD...take it, send the tenant a receipt and be very happy.
Sounds good to me. Tenant probably wants to make sure that some necessities are prepaid so the money from the sale doesn't "disappear". I had one of our Section 8 tenants do this, she moved in in February, and used the refund money from her federal taxes to pay her security deposit and her portion of the rent for 6 months up front. It was her first time having a place of her own, and I think she wanted to make sure things went smoothly. She's been there over a year and things have been fine.
I would take the money.
I think I would take the money too, but you might as well ask why they want to pay 6 months in advance. Their answer may well give you some peace of mind.
why would you pay 6 months in advanced unless you thought you might not have the money in six months? sounds strange to me, but I'm a begginer here.
InfoSponge3000 and hibby76 both gave you some interesting insight and good advice. Be careful, but take the money.
Good luck.
take it