Need advice on potential tenant situation

[Sam Singh]

I have a potential tenant who is interested in my rental property... It is a guy that suffered an accident, but received a large settlement. At the same time, there was a window where he was unable to work and his credit took a big hit from unpaid bills. He is recovering from that credit wise, but he said it has caused a big drop. He is now able to go back to work and anticipates having a job soon. For the meantime, he would be willing to pay 12 months up front to cover the first lease term... and then, may be i could do some sort of requalification for renewal that would entail income verification/new credit run, etc..

While the offer of 12 months payment upfront seems tempting, i am worried on worse case after 12 months if he does not qualify, get a job, abd chose to not move out...

Anyone delt with such situation before or have expert opinion on such cases???

Thanks!!!!

[Bjorn Ahlblad]

Unfortunately there are some very shady tenants and shady practices in this business-yes shady LL's too. A professional tenant will try to determine whether he/she is dealing with a PM or small time LL. Theory being that a LL will not screen as thoroughly. Pro tenants figure LL's always need money. So by offering a big chunk of it the LL goes blind to the scam. The LL won't screen as thoroughly, and will be after the money to pay bills etc. A PM won't care the 12 mos up front is not going into his pocket anyway. So the pro tenant wants to know 'who' he/she is dealing with.

Once you have moved in the tenant the fun starts. If is is a SFR they can start cooking meth, move in their relatives, start breeding dogs or whatever. If you try to evict it will be tough, they are not in arrears, you may be unable to establish your case before a judge. meanwhile your assett is being ripped to shreds. Also you might forgo inspections because of the 12 month prepayment.

Can the 12 mo prepayment be legit? I'm going to say 'no' I don't believe in the tooth fairy either. @Dennis M. @Steve Vaughan Maybe we could hear from you on this?