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Updated almost 6 years ago on . Most recent reply

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16
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Frank Mirando
  • Investor
  • Nesconset, NY
5
Votes |
16
Posts

tenant offered to pay 12 months rent up front should i take it?

Frank Mirando
  • Investor
  • Nesconset, NY
Posted

Thanks for taking a moment to read this post I could use some advice.

This potential tenant was formerly my landscaper who moved south with his wife a few years back.  Long story short, she became ill, medical bills turned them upside down and sadly ended up passing away.  He sold home to cover medical bills, and received a 6 figure death benefit after she passed.  To add more sadness to the story, he was diagnosed with stomach cancer which was under control until recently discovering it is back. 

Bottom line- he needs to come back to NY for treatment, needs a place to live with his 2 black labs and is willing to pay 12 months up front.  I am on the fence for obvious reasons.  

So far I know his landscaping business is still open, run by a partner however I do not know their agreement and his income just yet.  He claims to have over 100k in the bank now my concern is how long that will last.  Even with good insurance it could cost a fortune to be ill.  

The unit is 2 bed 2 bath detached cottage with private backyard and we are in the process of renovating it.  It will have new kitchen, new bathrooms and flooring with washer/dryer in the unit.  I have no doubt I will be able to get a good tenant in quickly in my market.   

What would you do? 

  • Frank Mirando
  • Most Popular Reply

    User Stats

    303
    Posts
    363
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    Steve Hall
    • Rental Property Investor
    • Texas
    363
    Votes |
    303
    Posts
    Steve Hall
    • Rental Property Investor
    • Texas
    Replied

    @Frank Mirando

    Like @Thomas S. said, there must be a reason this guy wants to pay 12 months up front. (I disagree with Thomas that it is always a "bribe". He's stereotyping tenants. That is why I did not up vote his comment.) Did you ask the guy why he wants to pay 12 months in advance? Did you tell him that you still needed to run a background check?

    I tried this once, paying 12 months rent up front. No property management companies would even consider me, so that left me with individual landlords. Most thought I was on the lam, a drug dealer, or a sexual predator. Really, I just did not want anyone to know where I lived. I didn't want to give my social security number out, I didn't want my name on their rent roll, I didn't want to show my 1040's to them, I didn't want them pulling my credit history and I didn't want them reporting my address to the credit bureaus.

    If someone approaches me with an offer to pay for a year in advance, I would consider it as long as they explain to me their reasoning and they agree to let me run a criminal background check. I would ask them questions about their business, why they don't buy a house, how they can afford to pay $10k+ in one lump sum. I might also make them show me proof of funds (i.e. where the money is coming from.) I would work with them based on their situation, not jump to unreasonable preconceived conclusions (as most landlords do) on what this might mean.

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