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Updated over 1 year ago,
Ever consider collecting all rent up front for a discount?
I know that when a new tenant offers to pay upfront its a red flag. However, for an existing (good) tenant anyone ever consider offering a plan where rent can be paid in advance in return for a discount? I am in software sales, and this is a common practice we employ when doing deals. It can be for a 6 month or 1 year period, and have a sliding scale of discounts?
Why I am thinking about this? In my experience I have found even good tenants have life circumstance or unforeseen economic hits come that they are not prepared for. With unemployment at a historical low, inflation remaining sticky and a Fed that is determined to slow down this economy I think it is a foregone conclusion that unemployment will go up substantially, meaning collecting rents can get harder.