Involved In Real Estate · Potomac Falls, VA · Member since 2012 · 203 posts · 31 votes
I have an applicant who has just ok credit (average) but had a few late payments on last lease due to something or other. He told me a story, but I generally don't invest in "stories". However, he said to make up for that, he would just pay the entire lease period up front. Assuming i clear all his other criteria (employment verification, references etc), is this something NOT to consider? I'm having a hard time finding the negative.
"Some people are rich and can afford a year in rent. Most financially responsible, well-off people don't want to pre-pay a year's in rent when they could invest that money and earn interest on it. If they have a large cash sum, you also have to wonder why they're not buying a house."
How is 12 months rent a "large cash sum" and able to afford a HOUSE with ? How do you know every one of them offers the payment "up front"?
I would like to pay the full rent for the entire year. (I am not a drug dealer or user. I am not running an illegal operation.) My story is I had to leave my state and move to my Mommy's state. A whole different coast. I needed to leave my job to be there for my mommy. That means no income for me. My mommy now has a brain injury. My mommy needs 24 hour care. It is just me taking care of my mommy. It costs a lot for help with health insurance. Other help she does not qualify for because she makes over the qualifying amount. It is my mommy income that is being lived off now for both of us. Retirement from the U.S. government and disability. I had my own money saved way before this all happened. I wanted to use what I saved prior to my mommy becoming disabled to pay the year in full. Of course, every month retirement and disability would be the income. My mommy does not have good credit and landlords want 40x to 90x the rent. Side note my mommy credit score has increased since I have come to take care of her. My mommys income is guaranteed income. It's not a job that has the risk of you being fired or laid off. There are those like me who want ro pay in full because no one wants to accept you as a renter. That goes for places that are low in rent too. They all say no based on credit and the multiple times the rent for income. When my mommys income can pay the rent without problem. Even with my mommy having over 15 years of great rental history and not being late on payments they say no. I question, what is actually the purpose of checking rental history then. It's hard.... Especially, when you are being honest and not doing anything. I want to pay the rent in full for the best interest of my mommy. I just wanted people to know there are those who are telling the truth and being integral.
Like you said screen very carefully. I would be surprised if he actually applies once he finds you are actually going to screen. The full year rent in advance is the head fake for the landlord to see dollar signs and not screen applicant. After all what could possibly go wrong, I have a whole year's rent? The answer is more than you can imagine. If you want some suggestions as to what could go wrong post back.
A fellow investor I know in Jacksonville had a young lady pay him a year in advance back during the last recession (2011-12). He thought he had it made, with over 14K in the bank in advance. Well, a month into the lease, she became a nightmare. Neighbors were complaining about noise, and every other week she had a maintenance request. The last straw was toward the end of the lease, he found out she was running a business out of the house. Not a legal one either.