Tenant wanting to pay a year in advance

General Landlording & Rental Properties
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Tenant wanting to pay a year in advance

Kimberly M.
Orland Park, IL · Member since 2017 · 12 posts · 3 votes

 I have an older gentleman and woman that want to rent my single-family home. They put down one dog on the application. When I checked on their Facebook I found that they have three dogs so they lied about two of them, one of the 3 is a pitbull. These people had a disaster happen to their house so have no rental history. I tried to do background screening and because they told all the credit bureaus to block everything due to compromised personal information during the disaster I can't get any credit report or other screening information. They offered to pay the entire year in advance but they have two more dogs than they have told me about. Any recommendations would sure be appreciated ASAP. Thanks

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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y

Pass, you are getting coned. They are attempting to bribe you into ignoring your screening standards. Do not waste your time trying to screen.

This is a very old trick that high risk applicants will use to fake out hobby landlords.

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  • Paul Halphen
    Rental Property Investor · Greenville, SC · Member since 2015 · 19 posts · 20 votes
    8y

    You need to know who you are renting to.  Right now, you know they have some money, are small liars, and maybe they are big liars.  Maybe they are great, what side are you going to error on?

    They can allow you to pull their credit by unfreezing their reports temporarily.  That's where I'd start.  If you can't get that for some reason, you got to get references and previous addresses.  Look them up in the county courts.

    The allure of upfront rent is strong, but take it from personal experience... it's not worth it.  I had a PM get all excited (me too) about 9 months of prepaid rent.  Guess how many months they got out of us for free on the backend?  Almost 4 months and an appliance suite.  It took neighbors, an attorney, and the police showing up to court after every imaginable delay to get this person out of the house.

    6Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Pass, you are getting coned. They are attempting to bribe you into ignoring your screening standards. Do not waste your time trying to screen.

    This is a very old trick that high risk applicants will use to fake out hobby landlords.

    16Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    8y

    Actually, people paying a year's rent up front is fairly common and different ones do it for different reasons. The number of dogs issue and the inability to complete your screening make this a no go unless those issues get resolved. You have a process, stick to it.

    5Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    8y

     @Kimberly If they lie to you they will cheat you.  One of the C's of credit is Character and it looks like they don't have good it.  What happens in 12 months? I don't do one year leases.  I'd find a better applicant.

    3Reply
  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    8y

    How do you know they are lying about the dogs? They may have found other homes for two of their dogs. I dont think seeing pictures on FB is a valid screening tool

    5Reply
  • Kimberly M.
    OP
    Orland Park, IL · Member since 2017 · 12 posts · 3 votes
    8y

    I think they have 3 dogs Because they posted looking for a rental property in recommendations on FB and said they needed a fenced yard because they had 3 dogs.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    If they lie to get in, they will continue to lie once they are in. Hard pass and I wouldn't even bother running their application.

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    6Reply
  • Robert T.
    Investor · Cameron Park, CA · Member since 2015 · 64 posts · 72 votes
    8y

    They can temporarily unblock queries of their credit. If they aren’t willing to do this, move on to other prospects. 

    4Reply
  • Amy Beth
    Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    I would let them know that did not pass your screening and you have to decline and keep looking for a better tenant. They are not allowing u to do a background check so that is not passing your screening. They could unblock their credit reports but are choosing not to. The fact that they lied about the dogs though is my main reason for declining them although I would not tell them that. Once you catch them in one lie that shows you their character. Not someone I would rent to. Keep on searching for a more qualified tenant and do not be lured in by the offer of paying rent upfront.
    3Reply
  • Mark Mathews
    San Diego, CA · Member since 2015 · 77 posts · 22 votes
    8y

    Ask them directly about the other two dogs.

    2Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    8y
    With the story you added to your question no one on this forum is going to advise you to rent it to them. Guess your just looking for confirmation
    0Reply
  • Chris Tran
    Real Estate Investor · Irvine, CA · Member since 2013 · 24 posts · 24 votes
    8y

    You have screening criteria and if they're unwilling to prove that they meet it. Why bend over backwards and take the risk of bad tenants when they won't even go through your screen process in good faith?

    If they lied to you and got away with it, 100% they'll do it again.

    1Reply
  • Jacob Villalobos
    Whittier , CA · Member since 2013 · 176 posts · 96 votes
    8y

    Charge more money for the extra dogs.  Take a year rent up front so long as he can pass a credit check

    1Reply
  • Knifie Burks
    Real Estate Agent · Tampa Fl · Member since 2014 · 33 posts · 20 votes
    8y

    I would only do it if they unfreeze their credit for me to run it.  If their credit is acceptable to you then rent but add extra charges up front for the additional dogs.  

    2Reply
  • David Hedges
    Investor · Crown Point, IN · Member since 2014 · 177 posts · 84 votes
    8y

    I always took offering more than 1-2 months rent as a red flag. When I did take tenants in the past that had paid multiple months rent in advance, I recall every one of them being a problem. 

    For some, that money they gave you initially, was all they gave you. The next stop was filing for eviction. Along with this, there are a lot that will try to use the fact that they paid in advance as a bargaining chip, trying to get you to overlook things they are doing, that might be upsetting the neighbors or causing other tenants to consider leaving rather than renewing their lease. 

    Also, you don't want to rent to ANYONE, unless you get credit, criminal, and eviction checks on them. 

    My advise would be to pass on them and keep marketing the house for rent. You'll find a better tenant..

    3Reply
  • Kimberly M.
    OP
    Orland Park, IL · Member since 2017 · 12 posts · 3 votes
    8y

    Thank you everyone for your feedback. I really appreciate it.

    0Reply
  • Bettina F.
    Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    8y

    I would look them up on my county assessor's website and see if they actually even owned property.  Even if they had a fire and have to rebuild, they would still be listed as owners of the parcel.  They should also be willing to provide proof of funds.  

    Also look them up on your state/county courts data base.  They may not have a rental history due to just getting out of prison. 

    I suspect that the disaster is an eviction.

    2Reply
  • Kimberly M.
    OP
    Orland Park, IL · Member since 2017 · 12 posts · 3 votes
    8y

    Thanks. I do know that the disaster is legit because I looked it up and it was on the news. I will check though with the Assessor's Office.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Kimberly M. do a screen capture and print out the Facebook post for your records. Let them know you are not able to approve their application because they were not truthful on their application about the number of dogs. Do not enter into a conversation with them about it. Do not tell them how you know. Tell them your decision is final. If they keep trying to talk about it, just keep repeating the same thing. "I said we are unable to approve your application, the decision is final." Keep repeating this no matter what they say. After a couple times, just tell them you need to get off the phone now. If they call back, do not answer and block their number. Less is better when denying people.

    The cash in advance is not really the issue here. Cash in advance can be a cover up of a problem, but I have also rented to two tenants that paid cash in advance who were both great. Their life situation just make it easier to pay in a lump sum. 

    2Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    8y

    @Kimberly M. I don't try to find ways for people to fit my tenant criteria. They either do, or they do not. If they do not, I continue looking. It's far better to have an empty unit than go through an eviction.

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    4Reply
  • John Woodrich
    Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    Cross them off the list.  If they are lying about this they are lying about other items.

    I would guess they have credit problems and one of them is likely a convicted felon.  I am not sure of your area but in our are the people making these offers are the desperate ones.  And the desperate ones are usually desperate for a reason....

    2Reply
  • Terre B.
    Aurora, CO · Member since 2018 · 180 posts · 166 votes
    8y

    I was young and stupid, and took 6 months rent once, from a woman who had just gotten the money from the sale of her home in the divorce.  During the eviction 9 months later, when we arrived with the sheriff, we had to get the entire family out of bed at 10am, despite them knowing the eviction was scheduled for that day.  They literally sat and watched my crew move their stuff out.  Then they picked what they wanted, and I had to hire the rest hauled off.   

    3Reply
  • Kimberly M.
    OP
    Orland Park, IL · Member since 2017 · 12 posts · 3 votes
    8y

    Everyone, Thank you for your feedback. I did more research on the assessor's office and other background research and decided to move on and deny the person. Thanks for looking out for me:)

    2Reply
  • Frankie Woods
    Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    8y

    Do not do this.  It's not worth the (probable) problems that will ensue down the line.  They actually sound like professional tenets.  Run!

    1Reply
  • Jonny Phillips
    Investor · San Diego, CA · Member since 2017 · 22 posts · 18 votes
    8y

    Unfreezing credit reports is very easy for them and necessary for you to see. 

    There's a lot of red flags on this and I would personally move on.

    If you still want to pursue it after looking at their background and credit report, might I suggest  a higher security deposit or pet fee up front.

    Still, there's always better tenants out there for you.

    1Reply
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