security deposit in installments

[Edith Yuh]

I am moving and renting out my condo ($2700/month) in the San Francisco Bay Area. A prospective applicant asked me prior to viewing the property whether they can pay their security deposit (1.5 rent) in 4 installments because they are just moving from Florida due to visa requirements, and aren't prepared for the high housing costs in the San Francisco Bay Area. I am collecting the 1st month rent at lease signing but they can't afford the security deposit and last month rent (which would have been ideal, but also a lot of money for someone who hasn't been making Bay Area salaries). Should I let them pay in installments? (I haven't sent them an application yet, because not sure whether I should decide this prior to giving them the application, or whether this answer depends on their credit/background check).

First time landlord here, so all related and mildly related advice based on your experience are welcome. Thanks in advance! 

[Matt Devincenzo]

This would be a no for me. They can find some way to get the funds, but I'm not financing the deposit for them. If they're moving for a presumably good paying job that would provide the funds for move in then they should ask their employer for a relocation 'advance' or something of that nature.

[Jackie Cramer]

No. 

you are in control of your property not this susp...uh, prospect.

All move in monies, 1st month rent, full security deposit and any all fees, utility deposits and proof of paid renters insursnce must be provided Before you hand over the keys.

FIND someone who can afford it

[Brian Garlington]

Absolutely not. They are already telegraphong to you how they will be as a tenant when it comes to making payments. Full deposit upfront or no go......In fact I would actually say no to them anyway because the fact that they would ask this before moving in is a huge red flag. 

Two red flags if they have not physically seen the place yet and are strictly going by pictures and video.

[Chris Herrera]

@Edith Yuh you’re just asking for trouble here, if they can’t afford the move in fees then what makes you think they’ll be able to afford the rent moving forward especially if they’re not from the area?

Your unit is empty right now so why take the risk of having a problematic tenant so be a bit more patient so you can find the right tenant

[Nathan Gesner]

I require the security deposit in full, in certified funds (money order or cashiers check), and in 24 hours. No payments.

This guy hasn't even applied yet and he's already telling you it's not affordable. He should have considered the costs before making such a dramatic move.

[Adam Martin]

I agree with @Nathan Gesner although I am twice as generous and give 48 hours to pay.  For me the deposit is a key part of screening.  You know you are moving in most cases and you should have prepared to have the money available.  If you don't this to me means you have no savings and are only a car breakdown or medical bill away from not making your rent payment.  Even if someone says they just need until Friday this is a red flag.  You are in California so you need to be even more vigilant being in a super tenant friendly state.  I'd just ghost on this one.  

[Peter Mckernan]

@Edith Yuh this is a red flag for me, they should be able to have the money in their pocket (bank account) to afford the security deposit in full. This is something that I check when doing the background check etc. You would ideally want 3x the rent in their back account, sometimes I'll be okay with 2x rent, but that is only on rare occasions. 

If they cannot afford that amount then there could be problems while they are tenants etc. due to not making rent or they could just move in and not pay the rest of what they own you as a security deposit. You can find someone that can afford the whole security deposit in this market for sure. I would keep looking. 

[John Teachout]

We collect first and last month's rent and a security deposit prior to move in. I do sometimes get asked if they can split the deposit and I say no. It's a pile of money all at one time but as someone else stated, it's part of the "screening". These funds are your insurance to some extent and you wouldn't be wise to waive that. Another red flag in your case is that they don't have any job history with their current employer.

[Karla Simmons]

@Edith Yuh

I would definitely say no. There are plenty of people out there that are able and willing to come up with the funds to move in.

[Steve Vaughan]

Quote from @Edith Yuh:

I am moving and renting out my condo ($2700/month) in the San Francisco Bay Area. A prospective applicant asked me prior to viewing the property whether they can pay their security deposit (1.5 rent) in 4 installments because they are just moving from Florida due to visa requirements, and aren't prepared for the high housing costs in the San Francisco Bay Area. I am collecting the 1st month rent at lease signing but they can't afford the security deposit and last month rent (which would have been ideal, but also a lot of money for someone who hasn't been making Bay Area salaries). Should I let them pay in installments? (I haven't sent them an application yet, because not sure whether I should decide this prior to giving them the application, or whether this answer depends on their credit/background check).

First time landlord here, so all related and mildly related advice based on your experience are welcome. Thanks in advance! 

 I have worked with new tenants on their move-in funds,  but never the deposit. There's no such thing as a x-day notice to pay deposit.  At least with a x-day notice to pay rent you have teeth. 

The best I do is take the last month's rent in installments,  never the deposit. 

[Jonathan G.]

@Edith Yuh

No. This applicant cannot afford the place. Would pass.

[Daniel JongMin Kim]

Don't do it! You have got to be firm and have things in writing in SF. Rental market has been picking back up so you will find someone who is a better fit.

[Frank Wong]

Like everyone said don't do it. You should be able to screen and find the right tenant in SF. SF also has very strict rental laws, and you will need to be strict with your screening process.  

[Jeff S.]

Before it was illegal in Portland, Oregon I many times took 1st and last upfront and spread last month over 10 months. They would have to qualify for the payment and have perfect credit. DO NOT defer the security deposit because you will never see it.

That sounds cheap for SF. If you under rent it good chance they will sublet it for way more than $2700 and disappear. Plus you can never get them out if you want to sell. Maybe they will do daily rentals illegally and then the city comes after you with a huge fine.

First time landlord DON'T DO IT!

[Eric Gerakos]

No.

[Jake Guthrie]

I fell into this trap once when I was a young man.  Never again, I wouldn't suggest doing it. 

[Jeff S.]

Before it was illegal in Portland, Oregon I many times took 1st and last upfront and spread last month over 10 months. They would have to qualify for the payment and have perfect credit. DO NOT defer the security deposit because you will never see it.

That sounds cheap for SF. If you under rent it good chance they will sublet it for way more than $2700 and disappear. Plus you can never get them out if you want to sell. Maybe they will do daily rentals illegally and then the city comes after you with a huge fine.

First time landlord DON'T DO IT!

[Jeff S.]

Correction: took first month and security upfront spread last month over 10 months or so.

[Curtis Mears]

@Edith Yuh

No, being able to afford the upfronts is a requirement of leasing. This individual does not meet minimum standards for a renter.