Upfront Rent Payment

[Matthew Russell]

Hi All!

I own a SFH rental in the Charlotte, NC area and I am currently working with an applicant interested in my rental. For some background I have already received a rental application and performed my due diligence and the applicants check all the boxes (income, credit, rental history, etc) and then some!

As we were working out the details of the lease, he asked me the following question: "Could they pay the 12 month lease upfront with cashier's check for a 5% total discount?" 

I am considering this since it would give me security over the term of the lease and I could use this funds to invest elsewhere.

My main question to the BiggerPockets community is: What happens if they voluntarily break the lease after 6 months, then it take me 2 months to rerent (so previous tenants are on the hook for 8 months). Am I obligated to pay the additional 4 months of prepaid rent back to that tenant?

Thanks!!