Lease language - Tenant is paying half rent monthly, half rent annually

General Landlording & Rental Properties
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Lease language - Tenant is paying half rent monthly, half rent annually

Sandra Youngblood
Member since 2023 · 1 post · 1 vote

My tenant is paying for half of her lease monthly.  Her ex-husband is paying the remaining half in one payment up-front.  How do I craft this lease language to protect myself?  

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Glen Wiley
Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes
2y

This sounds like a potential headache, so many ways it can go wrong or get complicated. I would keep the lease language specifying monthly rent payments. If they pay more up front that is fine, you can credit the balance.

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  • LeeAnn Owens
    Investor · MD · Member since 2023 · 71 posts · 45 votes
    2y

    Hi Sandra, great question! I know this was posted a while ago, so if you already made a decision I’d be curious to see what you did. 

    My first question would be if the woman qualifies for the unit on her own? You don’t want to be stuck in a situation where she can only afford it with her ex husband helping, so she stops paying you after a year. If she doesn’t have the credit score and income to pay for it herself, don’t rent to her.

    I personally wouldn’t get involved or take the money from the ex husband. He can pay her the lump sum, and she can pay you rent in full each month like she normally would. You don’t want to be stuck in the middle of them. 

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  • Glen Wiley
    Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes
    2y

    This sounds like a potential headache, so many ways it can go wrong or get complicated. I would keep the lease language specifying monthly rent payments. If they pay more up front that is fine, you can credit the balance.

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    2y

    Tenant is the ex-wife. Ex-husband is the guarantor of the lease.

    In some states accepting pre-paid rent is not permitted. In that case either create an escrow account for the lump some and draw from it monthly OR 12 post-dated 1/2 monthly rent checks provided by the guarantor at signing would seem to work.

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