How to get tenants to pay 12 months upfront!

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Thought I'd share with you all how I've been able to get some of my tenants to pay 12 months upfront... Before the tenant signs the lease, I give them the option to have a $50.00 discount per month. I know I lose $600 per year, but I make my money back when I use the upfront money to purchase a new property. For example, last year, I was able to this with 5 of my properties which gave me about $39,000 upfront. I used this as a downpayment on a 70k property with seller financing. Note: If you have overseas students as tenants, they almost always say yes. Kevin

[Thomas S.]

Cool idea (not) but likely illegal since the money up front is not yours to spend.

Rent payment in advance remains the property of the tenant and must be held in trust to be drawn on each month as rent comes due. In the event the lease is terminated early a portion of that money is to be refunded to the tenant.

What you are doing is a major business mistake and the reason why landlords never accept advance rent payments from tenants.