Discounted Rent for Upfront Payment

[Jeff He]

Question for the landlords and property managers out there. If a tenant offered to pay all 12 months of rent upfront on a 12 month lease. 

1) Would you take it?

2) Would you offer a discount for this upfront payment? If so, how much (In terms of a percent)?

[Scott M.]

Discount, 100% no.  We have taken prepaid rent in the past but never at a discount.  Prepaid rent isn't yours until it is due.  Meaning you need to keep it with the SD and then pay it monthly as the rent is due.  As @Joe Villeneuve said if there is an issue and you need to evict you need to return the funds and sometimes that can complicate things with judges.

Also, over the decades have learned it is hard for them to start paying sometimes when that time comes as they are not used to it.  This isn't a yes/no answer for me as it depends a lot more on the individual situation.  That said, never a discount and proceed with caution.  Also, don't fall for this as a way out of doing your due diligence on a tenant.  That is a trap.