Thoughts on Prepay Tenants?

[CJ B.]

Any thoughts on prepay tenants?

My leases require 660 credit score or better. 

Potential applicant is going through a divorce, which she claims ruined her credit. 

However, applicant has offered to prepay for the entirety of the lease.  For employment, they only make $19 an hour, and I've yet to run background check. Rent is $1500/mo.

Admittedly, it sounds enticing, but I want to make sure I'm not missing any red flags. Thanks BP community! 

[Tim Miller]

HELL NO!!! RED FLAGS!!!! If your unit is in a very tenant friendly state, they can really screw you legally. Maryland law only allows for you to collect two months rent to hold as a deposit. So if you take a years rent in advance, they can turn around an sue you. 99.9999% chance you will lose and could be liable for up to 3 times the amount you are over the two months limit. Basically you are looking at up to $45k that you would have to pay to the tenant.

As for this potential applicant, they are just another "Cry me a river" that I don't want to hear. Tell her or anyone like her that this isn't possible and you must past all of my requirements to rent this unit. Good luck!