Lessee pays 1yr in advanc

Hi, I have a pespective Lessee who has filled out all of the resedential lease application. They want to pay 12 months in advance plus the security deposit in full now. They have told me their credit is not good, and would prefer that I not run a credit check as they are having to have it checked often for furniture and other items. Apparently they came into a hugh inheritance. What are the cons to going ahead with this as they requested? Any thoughts? Appreciate your assistance!

--98.193.xxx.xxx

Lessee pays 1yr in advanc (by NE [PA]) Posted on: Aug 22, 2010 4:57 PM
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My thoughts are you'r estuck with them if they pay a whole year, things could go south. Can you verify inheritance? How many tenants do you know have monthly rent x 12 in reserve? How many people do you know who have that much money available besides a landlord? Why don't they use it as a downpayment on a house? Too many variables for me. Others will disagree. --173.86.xx.xx

Lessee pays 1yr in advanc (by Martin [MO]) Posted on: Aug 22, 2010 5:10 PM
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I'd take their 12 months rent up front AND I'd run their credit since it is part of our standard application process. I'd take their $$$ but process their application just like everyone else. Your credit check will have very little effect on their credit report. Either they don't realize that or they are trying to hide something. --70.252.xxx.xx

Lessee pays 1yr in advanc (by BJS [CA]) Posted on: Aug 22, 2010 5:21 PM
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Ask youself if they did'nt pay up front would you rent to them?

What happens in a year?

If you rent ask for the maximum deposit you can. --71.132.xxx.xxx

Lessee pays 1yr in advanc (by Clare [IN]) Posted on: Aug 22, 2010 5:22 PM
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Thanks for your input..... they say they can't put a downpayment on a home as they have bad credit and would never get loan approval. I'll call them and tell them I need to run the credit and background check.

If they did cause trouble, couldn't I evict them in the same fashion as others who pay monthly? This is a condo with rules and regulations that they sign and agree to ahere to. --98.193.xxx.xxx

Lessee pays 1yr in advanc (by Martin [MO]) Posted on: Aug 22, 2010 5:30 PM
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You could still evict for any reason other than non-payment. --70.252.xxx.xx

Lessee pays 1yr in advanc (by AllyM [NJ]) Posted on: Aug 22, 2010 5:32 PM
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Criminal means of making money. They don't want you to know anything about them. No one honest refuses to get a credit report.

Maybe drug dealers.

Maybe they are getting their money from backers overseas to do bad things here.

I almost had Mohammed Atta, the pilot of one of the planes that flew into the WTC in one of my apartments. Fortunately I had just taken a deposit on it.

If you suspect possibility number two, call the FBI. They WILL listen. --76.99.xxx.xx

Lessee pays 1yr in advanc (by Clare [IN]) Posted on: Aug 22, 2010 6:10 PM
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we're talking 15K plus one month security. No I wouldn't under other circumstances rent to anyone with a credit score of less that 650.......but then again I've never had a lessee pay a year in advance. I'm checking credit and background now. --98.193.xxx.xxx

Lessee pays 1yr in advanc (by Brad [IL]) Posted on: Aug 22, 2010 6:47 PM
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Run the credit report. If they don't allow you to run the report, deny their application.

Once you approve them you can decide if you want to accept the full year's payment. Personally I don't have a problem accepting advance payments. --98.212.xxx.xxx

Lessee pays 1yr in advanc (by jessica [CA]) Posted on: Aug 22, 2010 7:23 PM
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It's not legal here, but even if it were, I wouldn't do it, though I do take post dated checks, and deposit at the start of each month.

A lot can happen over the course of a year, and if they've paid, it might be difficult to get them out.

I'd say don't do it.

--76.83.xxx.xx

Lessee pays 1yr in advanc (by ManateeAlley [FL]) Posted on: Aug 22, 2010 7:42 PM
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M E T H - L A B --174.61.xx.x

Lessee pays 1yr in advanc (by BRAD 20,000 lease months [IN]) Posted on: Aug 22, 2010 7:55 PM
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We've done this. Inheritance, insurance claim, gift from parents, divorce settlement... In Indiana, don't turn ANYONE away with money!

Screen normally. Do not let this cash cloud your thinking.

Do not spend it all. They could leave mid lease and court require you return unused rent.

Make certain this is not a scam where they write you a bad check then ask you to refund some cash. (just got one of those emails yesterday!)

As with ANYONE unusual, keep a watchful eye.

--67.175.xx.xxx

Lessee pays 1yr in advanc (by Chris [CA]) Posted on: Aug 22, 2010 8:52 PM
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It would be illegal. T. turns around and may accuse you of some shake down. Or it's a scam to make you believe they are loaded, which is not true. so they get the keys without paying up. They got to limit the running of their credit report, agreed. But you got to know who you are dealing with!

No way can you hold on to that rent payment if they change their mind, IF it ever materializes at all --125.27.xx.xx

Lessee pays 1yr in advanc (by TE [TX]) Posted on: Aug 23, 2010 5:02 AM
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Con. Con. Con. They can use their inheritance to pay off their debt. I'd be more impressed if I saw they did that on their credit report because it meant they are taking responsibility. Now they HAVE money and they are still NOT PAYING. Two strikes! --76.30.xx.xxx

Lessee pays 1yr in advanc (by GEO. [OK]) Posted on: Aug 23, 2010 5:46 AM
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If you're OK with their credit check, etc., then have them purchase 12 cashiers checks, and you deposit one each month. Note: depending on the bank you may have to turn in some of the checks every 3-6 months and exchange for new checks so they don't expire. In the event you evict, you have the unused checks to return if necessary. Accepting rent with this process just makes you an escrow agent for the tenant.

I've done it and it's nice to know they will be current each month. --98.162.xxx.xx

Lessee pays 1yr in advanc (by billy [MA]) Posted on: Aug 23, 2010 6:21 AM
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no one gets in without a good credit report in my opinion.bad credit guys try to blind u with 6 months or more up front.dont be greedy.u need good credit. --173.14.xxx.xxx

Lessee pays 1yr in advanc (by allin [VA]) Posted on: Aug 23, 2010 6:46 AM
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HA HA HA so they can afford to have the entire year up front but they are still RENT-TO-OWN furniture. Nobody ran my credit report the last time I paid CASH for a sofa. If you have cash then you would be less worried about the credit score. Are they cleaning up their bad debts? I would be running the credit to see as I will not be taking somebody's word on that one. --146.165.xx.xx

Lessee pays 1yr in advanc (by Larry [MN]) Posted on: Aug 23, 2010 10:55 AM
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Maybe this is a dumb question, but have you actually met these people in person and they have seen the property? This sounds like an internet scam. They send you a check for 20K and you refund them the difference. Just checking.

Allin's point is a good one. Who cares about someone running a credit check when you have enough cash to pay for whatever you want to buy. Doesn't smell right. --75.73.xxx.xxx

Lessee pays 1yr in advanc (by Wind in His Hair [SD]) Posted on: Aug 23, 2010 7:24 PM
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Buy a six pack and sit down and watch Pacific Heights. --66.41.xxx.xx

Lessee pays 1yr in advanc (by graygrizzly [OH]) Posted on: Aug 24, 2010 8:22 AM
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You don't necessarily have to run a credit check to check background and all public records, and of course they must fill out app.

I have done similar things, such as getting a one time fee equal to 6 months rents, then reducing the rent to 1/2 for the year. Then if they don't comply with the lease, you can evict with a bunch of money. But they Will comply, if you have their $$. Watch for extra people, or unauthorized people. --24.166.xx.xx

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