basically the title – would you take a years rent paid upfront, if tenant offered? trying to understand if there are any downsides besides tax implications.
would you take a years rent paid upfront?
byu/Icy-Bird4588 inrealestateinvesting
Posted by Icy-Bird4588
5 Comments
The question you need to answer is why are they offering it?
What will you do if you have to evict her for some reason
No: if they violate the lease you can’t evict them.
No: are they employed or ‘taking time off’, they will be moving next year.
No: Upfront is something people do to blind landlords into overlooking items on background/credit checks.
Yes, I would under the right circumstances. I did it once and it went well.
Tenants who offer a large sum upfront usually have something that disqualifies them from getting approved such as an eviction, lack of job, credit issues, or criminal history.
In my case, the tenant worked under the table but had substantial savings but no credit and no rental history (moved out of her parent’s house)
Downsides – potentially harder to evict . You will need to return excess funds.
Most landlords will be apprehensive of such an arrangement but in my case, my concerns went away when she gave me 32K in cash.
I did this for someone who wanted to buy down their monthly payment, all the background info came back great and haven’t had any issues.