Applicant has no job but wants to pay 6 months rents.

26 Replies

I posted my rental online and received this from a interested renter out of state:

"Good morning we are family of 3 and we are living in north Carolina and we are going to buy a deli in ny so I willing to pay 6 months and advance also I can't provide you with sufficient found in my bank account".

I ask them some more questions regarding employment, credit and references and they respond with,

"I do have a great credit, I also can provide reference which is excellent, we are not working at the moment because we are moving from NC to NY and we are going to buy a business in NY, and also I can provide you proof that we have more than $200,000 in our bank accounts, that's why we are able to pay up to 6 month of rents ahead."

How would you experienced landlords handle this inquiry ?

I would tread very carefully. Could be legitimate or it could be an African prince type scam. I would meet them first, get the money in certified funds and probably require the full lease amount in that situation. If the business fails they won't have money to pay rent. I don't know the NY eviction laws so you would have to take that into consideration as well. 

If they only are willing to put 6 months up front I would just make the deposit 5x the rent and they make regular monthly payments like normal. That way if they bail or break the lease you have some cushion to ride out the eviction process. If that is legal in NY. 

You can reply but this most likely a scam

Got the same line of BS when listed our last place for rent.  None of them worked out.  I did have a friend that did get a year prepaid once and that worked out so you never know until they meet in person.

I agree with everyone else, this sounds like a scam.. I would recommend doing a comprehensive screening of the tenants if you do decide to continue the application process, i.e. criminal/credit/eviction history.  

This is tough because if he has the funds, then he should be able to withdraw monthly with ease. I would make sure I have a very solid lease written that protects yourself as much as you possibly legally can. Or, just get a normal tenant with a background, credit check, and jobs.

I wouldn't have even replied.

@Scott Sankhi I posted a similar thread, though for my own personal situation (half real-half theoretical) where I might want to rent for a year, would pay 6 months up front, and first, and last, and deposit, but we have only $50k annual income at this time. Almost everybody said no, they wouldn't rent to me unless I paid the full 12 months up front, even if I could prove I had significant funds in reserves. Even with 12 months up front, the common answer is no, just because it's unusual, and I get that; stick with what works is often sound advice. Now if you can't fill the place otherwise, well, at least you have a lead...

meet them at a local bank and tell them to bring cash ask to use one of their offices and have it deposited directly into your bank account 

When I rented I would pay 6 months upfront in cash 

So it does not seem strange to me 

@Scott Sankhi how often do you hear of people moving from NC to NY - I have heard the opposite. The story just doesn't make sense. They are buying a deli in NY, but have not purchased it yet? How is $200,000 going to pay for a deli and rent? 

My rule is income as 3X rent from verifiable sources. A deli they will purchase in the future is not verifiable. I wouldn't bother asking for more details, just say no. It is probably a scam, but even if not I would say no.

I've had my new tenant pay 6 months in advance each time. She works full time doing Ebay so income is not consistent and like a 9-5. She's been with us a year plus and she always pays 6 months in advance so just vet them and do background check. It's not as unusual as you think.

What @Joe Splitrock said, "how often do you hear of people moving from NC to NY" That's exactly what I thought. Big Yellow Flag there. LOL! 

When I managed property, I had no issue taking advance rent payments, even up front. I routinely had students pay a semester or a year in advance. In fact, that was my policy... since they (students) generally didn't have much credit and many didn't have jobs. Their parents generally paid anyway. Everything worked out. 

I would just screen them like anyone else. If they fit your rental policies, then that's what matters.  If they wanted to prepay, I wouldn't complain. Certainly I'd only take funds from a US bank, though. LOL! 

Absolutely not! Surely there's local individuals wanting to lease from you. I'd go that route! 

Do not waste time trying to qualify any applicant that does not meet your screening standards. If your screening requires that a applicant have a income then this one does not qualify.

Don't be tempted by the flash of cash.

Reminds me of the same crap I just heard recently from my friend's abusive and manipulative boyfriend who has 3 DUIs and no job.  I agree that moving from NC --> NY and expecting to spend $200k for a deli seems naive at best. 

Assuming they passed all other screening criteria, I would give them a 12 month lease and accept their offer of 6 months rent in my escrow account. To be used for the last 6 months and they should make regular monthly rent payments for the first 6 months.

This is either a scam or really naive people. You can’t possibly buy a deli in new York for 200,000. I would not even respond to the message.

It's possibly a scam, or possibly not. The only way to know is to let him apply.

This is why my rental policy and application are both online. If someone expresses interest, I send them to my web site. they can self screen (or not) and then apply. If they can prove they have excellent credit and the funds available to pay six month's rent in advance, I would probably accept them and give them 24 hours to deposit the funds or it goes back on the market.

If you build solid processes, you don't have to sweat odd questions like this.

@Scott Sankhi , I think if you were to accept, I'd take first, last and 5 months of security instead of 6 months up front., so you have some security should you need to evict, as @Peter M. mentioned.

Aside from that, I have some issue with other comments made in this thread.  Is it completely impossible someone would move from NC to NY? Absolutely not! That's what's great about New York, it's a melting pot, both of foreigners and people from other states.  I find that thought very narrow-minded, as if New York is only made of people from New York.  

As far as buying a deli in NY for 200,000k or less, 1) it is possible, look on any bizbuysell type of site, and 2) it's not unheard of to get financing when starting a business. 3) on 

Additionally, as a former RE Broker with inconsistent income, I was asked by my very large landlord (top twenty by units in the city) for a 3 month security deposit. 

If you are in a good rental market, I would take another renter that is less riskier and can show paystubs from work, pay security deposit, has a clean background check with no evictions, been at current job for 1 year. I charge the renter $50.00 to do a background check. Hope this helps.

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