Collecting Advance Rent Question

[John Matarazzo]

Hi all,

I have a new tenant (3 months in so far), she has been pretty great so far, pays rent in full on 1st of every month and keeps the place neat and clean. Randomly though she messaged me yesterday asking if she can pay 6 months or more of rent in one go. As a newbie landlord, what should I be aware of that I am not thinking about in entertaining this request. What concerns would you have if any?

For one, at least for the short term, we only have 3 months of rent left in the year. The one thing I am calculating is my taxes, I've spent alot in maintenance and repairs this year and with depreciation and other deductions I will make a loss, so I wouldn't want any pre-paid rent to off-set that. Any other things I am not thinking of here? Your feedback is appreciated. Thanks.

[Wesley W.]

Yes.  I usually see this as a red flag.  Tenants sometimes use this ploy to lower a landlord's guard on what is occurring at the property.  Additionally, it can become problematic to evict a tenant for lease violations whom has paid in advance, since you have already accepted monetary consideration for that extended time period.  Also, in some jurisdictions (like NYS, for example) it is prohibited to collect any advance rent.