existing tenant want to pay up rent for the year.
Hi all. I had an existing tenant contact me yesterday to say she would like to pay up rent for the year with her tax return. I have owned the property since October of 2014. It is a 6 unit property that I have been bringing up to my standards after years of neglect. She has been living at the property for over 2 years and just signed a new lease for 1 year. The property is lower income.
I am meeting with her today to go over the details of this. I plan to draft a document stating that whatever she deposits with me will be held by me in escrow. On the first of each month, the rent due for the month will be pulled from escrow and credited to that months rent. I will also indicate that if the lease is opened for any reason (pets or additional tenant) that rental amounts can still change. Lease violations can also still bring about eviction actions. If the lease ends, the funds deposited in escrow cannot be used for repairs but only for unpaid rent and early termination fees.
Am I missing anything or should I do anything differently. Should I only accept payments through the end of this year as opposed to the end of the lease (next april 30th).
Thanks for you insight.
Kyle