First, last, deposit, rights to first child?

Question

We are closing on our first buy and hold unit (before it has been vacation rentals only) and I am wondering what to do with our tenant regarding rent and deposit. We have a rock solid lease agreement but I don't know if asking for first, last and deposit is too much. We are renting the home out for $1375.

First, last plus deposit of the same amount would be $4125 which is a tough pill to swallow.

Any help would be appreciated. This is the home in Charleston, SC I mentioned last week.

Thanks BP!

Mike

John Semanchuk · Answer

I had never thought of asking for rights to first child.   That could backfire!  :-D

John Semanchuk · Answer

You can even give them 6 months to catch up.  I've never had a tenant try to skip out in the first 6 months.

Mike Bargetto · Answer

@John Semanchuk very insightful and straightforward. Thanks for the help on this. I will do just that. Giving the tenant a few months to pay the last month can lessen the burden.

Thank you,

Mike

John Semanchuk · Answer

I usually ask for 1st, last and security.  I try to keep my rents on the low side and get a lot of applicants so I can pick and choose.   When tenants can afford the upfront costs, it says something about them right there.     If I like the tenant, I'll give them a few months to work in the last month's rent a bit each month.

Having the last month in place up front has pretty much  stopped tenants skipping out early and saying, "oh by the way, my security covers the last month's rent".

If your current tenant came with the property and a lease already in place, then s/he probably has tenant's rights and you will have to wait for that lease to terminate to make any changes.

First, last, deposit, rights to first child?

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