Tenant willing to pay full year lease amount ?

Question

Hi I have a quick question, I have a tenant that wants to occupy my home she’s willing to pay full year in advance. She told me ahead of time that she has bad credit and might have a domestic charge from a past relationship with her ex. She wants a year to get her credit better to buy a house . What do you think?

Kyle Mccaw · Answer

@Miguel Z.

I'd be very cautious. In my experience, when someone leads with, "I'll pay a year up front," it's often an attempt to overcome something else that would normally prevent approval.

Bad credit by itself isn't necessarily a deal breaker, but I'd want to understand why it's bad. And I'd ask the obvious question: if they have a year's rent available, where did those funds come from? I once asked that exact question, and the applicant told me it came from a lawsuit settlement against their previous landlord. That was enough for me to move on.

Don't let prepaid rent replace proper screening. Verify income, rental history, employment, identity, and run your normal background checks. If the applicant doesn't meet your written criteria, I'd stick to your standards. A bad tenant can cost far more than a year's rent, and collecting rent is only one part of being a successful landlord.

Richard F. · Answer

NO.

Illegal in many jurisdictions to accept more than X dollars prior to move in, whether as deposit, last month rent, whatever fees.

She is telling you she has bad credit, and potential major drama.

What if she does not get her credit better, or get a job, or just doesn't feel like it? How will she magically start paying you a year from now?

Worse yet, what if YOU are not well disciplined, and burn through the "rent money", and she moves back in with the ex...that's been known to happen! But, since she didn't stay the full year, YOU are not entitled to the unused portion of rent, and must return it to her immediately.

Bruce Woodruff · Answer

Never. Big red flag. They're trying to obligate you to them. This has zero  benefit to you, because the money must be kept in a separate account, you have to send monthly statements, etc...

No pluses for you to do this.

Adam Tafel · Answer

I would avoid, unless you are having a real tough time renting the place or she has some other redeeming qualities (perfect criminal history outside of the one charge, high payment job with great work history, great landlord references, etc). I have only taken a lump sum from a tenant twice and it ended poorly both times. If you aren’t desperate for a tenant and you won’t be looking at much vacancy without this opportunity just move on with someone else.

Victor Patel · Answer

I would look at the entire picture rather than just the credit score or the fact that she offered to pay a year upfront.

A few things I would verify:

• Income and employment: Does she have stable income to support the rent after the prepaid year is over?
• Rental history: Has she paid previous landlords on time? A good rental history can sometimes tell you more than a credit score.
• Background check: Don't make assumptions based only on what she disclosed. Run your normal screening process and review the details of anything that comes back.
• Lease terms: If you accept a year upfront, make sure everything is properly documented in the lease and handled according to your state’s landlord-tenant laws.

The fact that she was upfront about her credit and past issues is actually a positive sign. Many problems happen when tenants hide information.

That said, don't let the large upfront payment be the only reason you approve someone. A year of prepaid rent is great, but a good tenant is still about character, ability to pay going forward, and taking care of your property.

Screen consistently, follow your criteria, and make the decision based on the facts—not just the story.

Jim Johnson · Answer

Paying a year in advance wouldn't automatically outweigh the rest of my screening process. I'd still verify income, rental history, references, and make sure the applicant meets the same criteria I'd apply to everyone else.

I'd also take time to understand where the funds are coming from and whether accepting prepaid rent is allowed under your state's laws, since some jurisdictions have restrictions on advance rent payments.

The goal is to evaluate the overall application, not just the upfront payment. Sometimes paying a year in advance is simply a practical solution for someone with imperfect credit, but I'd still want to be comfortable with the rest of the screening before moving forward.

Amit Patel · Answer

Hey Miguel,

Paying a full year in advance looks attractive, but it is usually better not to move forward with this one. Bad credit combined with a domestic charge is a significant red flag, and prepaid rent does not protect you from property damage, neighbor problems, or safety issues. In some places collecting a full year of rent up front is also restricted or not allowed.

I would still run the full screening if you are considering it, but most of the time these situations end up costing more in stress and potential problems than the prepaid rent is worth. Trust the screening results and your standard criteria more than the offer of a year paid in advance.

If the screening somehow comes back clean and local law allows the prepaid amount, then document everything carefully. In most cases though it is cleaner to pass and wait for a stronger applicant. But my genuin advice,as Richard F told you already, better not.

Drew Sygit · Answer

Mostly agree with @Richard F.

We've done them in the past and it's often a struggle with the property owner, explaining why we can NOT give them all the paid rent immediately. We have to pay it to them as it is earned each month.

So, why did we do it?

We've got decades of experience and also screened the applicant probably MORE than usual. In out experience, many of these types of tenants have something VERY negative they're trying to hide or get you to rent to them before you find out.

Not something a "newbie" landlord should mess with.

Miguel Z. · Answer

True very great points made thanks!

Tenant willing to pay full year lease amount ?

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