Potential Tenant willing to pay a years rent in advance.

[Kristen Brandner]

I have a potential tenant (still reviewing) that is willing to pay a years rent in advance. Is this a good idea or should I keep waiting. I’m new to landlording but, have read many of the bigger pockets forums and the Book on Managing Rental Properties by Brandon Turner. The tenant passes almost everything except the income part. He currently is closing on his home so he and his family are looking for a place to rent in a new area (moving from Arizona to northeastern Washington). He says once he closes on his home, sept 6, he can pay a years worth of rent in advance and would like to rent as long as they can. They can move in October 1st if everything checks out but. The only catch is he is the only one with an income and the offer letter from his future employer doesn’t guarantee set hours so his income is variable and not near the 6k a month that would be needed to meet the 3x month income. Am I making a bad decision choosing him and his family as tenants. They have been the only ones close to meeting the criteria and I’ve only had four inquiries since listing the place a month ago. Any input would be great.

[Cara Lonsdale]

It depends on what your state will allow.  In AZ, where I am, a Landlord cannot require or hold more than 1.5 times the rental rate in security deposits and/or prepaid rents.  It is illegal for Landlords to hold more than that.

So, before considering, you may want to check your applicable laws.