One method to avoid scamming tenants

[Nat C.]

I have a fourplex in Vegas. Each unit has 2 bedrooms, 1 bathroom. I charge a bit below market rent at $520 a month to avoid having vacancies.

There has been several applicants who couldn't only afford to pay the full month's rent plus additional $520 deposit upfront.

A lot of agents will let the tenant split the security deposit into 2 payments, paid over 2 months. I allowed a couple of tenants to move in under this arrangement. 2 of them followed through with their word, the other 2 never paid a penny after their initial payment of $780 and it took 6-8 weeks to evict them. They had a jolly time living rent free in my property. These people are professional tenants/scammers who figured a way to live in a property for nearly 3 months for just 1.5 months rent.

I still have applicants who ask to split the deposit into 2 payments. I agree and start them on a 30 day 'holiday rental contract' for $780. The contract states they will have the option of signing a one year contract at the end of the 30 days and $260 will be subtracted from the next month's rent.

This method helps deter the scammers whilst still helping genuine people in need who can't afford to pay the whole lump sum upfront.

If the tenant doesn't pay up after the first month, it's not going to be a lengthy and costly process through the courts to have them evicted.

[Michael Seeker]

@Nat C. - I think that by charging below market rents and allowing them to pay half the deposit, you'll attract more of the folks that are hard up for cash and therefore less likely to adhere to any agreement.

Why not welcome the higher vacancy during turnover, charge slightly higher rent (at market rate), require full deposit up front and not deal with the folks who are causing you all the headaches (evictions, non-payment, higher turnover/vacancy, etc.)?