Applicant requesting to pay year in advance, from out of country

[Michael Gallagher]

Hi, I have a request from an applicant who is new to the US to pay 1 year in advance (plus security deposit) due to no credit/pay history since moving here. The applicants cousin (lives local and is local realtor) has offered to co-sign on the lease given the circumstances and was totally upfront with the applicants situation. The applicant is early twenties and has a supposed cash job from another family member. My gut is telling me to move on but was wondering if anyone else has had any experience with this type of scenario.  I don't particularly like the paid in full aspect, it was offered in the past and I always turned it down.  The co-signer aspect is different than my previous paid in full offers.  Thanks in advance for your guidance.

Michael

[Nathan Gesner]

It's a red flag, but that doesn't mean you should automatically reject them. Run your background search the best you can. Run a full background on the cosigner. If it checks out, take the money and move them in.

A lot of renters will wave cash under your nose as a means of skipping your background check. Don't take the bait! Always run your process and only rent to them if they qualify under normal circumstances.

Also, make sure the funds are cleared before you hand over the keys. If they want to pay with a check, wait for it to clear the bank so you know the funds are good. ACH takes three banking days to process. Best option is to get a money order or cashiers check.