Can you collect a whole year rent upfront?

4 Replies

Hey all!  Great to find this amazing site with so many helpful community betters.  Been reading a lot of the knowledge and insight you all have been offering and it's great stuff, thank you!

I have a question if you can collect a whole year rent up front?  I know the standard is first, last and security deposit.  However I have a property with such high demand that the possible tenant offered the full year upfront to lock in the property.  I'm from MA and I just wasn't sure if this is legal to do so?

Thanks in advance for your help!!!

Ryan

I'm not sure about Mass, but I'm 99.99999% sure for residential apartments in CT you are only allowed to collect the equivalent of 3 months rent up front, whether it is called rent, deposit, fees, or whatever. Sounds like a good question to ask an attorney or your fair housing/real estate commission/housing office about. 

Medium rpm logo small jpg web optimized   white bgDaniel Raposo, RPM Homes, LLC | [email protected] | http://www.rpm-homes.com

Originally posted by @Ryan Rogers :

Hey all!  Great to find this amazing site with so many helpful community betters.  Been reading a lot of the knowledge and insight you all have been offering and it's great stuff, thank you!

I have a question if you can collect a whole year rent up front?  I know the standard is first, last and security deposit.  However I have a property with such high demand that the possible tenant offered the full year upfront to lock in the property.  I'm from MA and I just wasn't sure if this is legal to do so?

Thanks in advance for your help!!!

Ryan

Yeah....

Don't do that...

I doubt it is legal to do that in many places but sure as heck not in Tenant-achusetts.

You can't even charge an application fee (Some people work around this with different terminology).

Good rule of thumb around here is anything that might benefit you and is common sense is probably a violation of tenant-landlord law.  :)

Medium rre logo web rgb w motoShaun Reilly MBA, Reilly Real Estate, LLC | [email protected] | 1‑800‑774‑0737 | http://www.MassHomeSale.com | Podcast Guest on Show #43

Thanks for the input guys!

Vermont is also a tenant friendly state. I have a lease with the local PHA and they paid a years worth of rent up front. They sublet the apartment to the tenant and collect their portion of the rent. 

I assumed this was legal or the PHA wouldn't have offered it. The IRS requires that I claim the entire years worth of rent in the year it was received.