Tenant Low Move-in Rate/No Deposit

[Alec Siebert]

We're looking into buying a 60+ unit complex where their current marketing is for prospective tenants to pay about half a month's rent with no deposit to get them moved in.  I've been a property manager/investor for 13 years, but haven't managed anything bigger than 4 units and never needed to use this strategy.  And it seems, from previous experience, that the less money that tenants put down the more of a wreck their apartment and account balance are when they move.

I just wanted to know if this is really necessary in order to keep the place at relatively 100%, but especially how do you recoup any money for move-out damages?  Do we just get to eat that loss along with the initial half month's rent? 

Thanks in advance for your input.

[Thomas S.]

I have never heard of offering a first month discount. This is either a really pathetic owner that has absolutely no business scenes or it is slum housing with very high turnover.

I would either pass on the property or buy it and put and end to that practice immediately. The present owner needs to pull his head out of his butt and set his standards a little higher.