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Updated over 2 years ago on . Most recent reply

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8
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1
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Keaton Labby
  • Lender
  • Houston, TX
1
Votes |
8
Posts

Renter "between jobs" offers to pay entire year rent up front

Keaton Labby
  • Lender
  • Houston, TX
Posted

Hi Everyone, 

I have a few tenant applications and one of them is offering to pay the full 12-month lease's rent up front with the security deposit. After the screening process the background check, eviction report, and credit report all came back clean with no issues. She just currently doesn't have a job due to moving from out of state. 

My questions/concerns:

1) What are the legal implications/obligations with a full year of prepaid rent in Texas? I can't seem to find any Texas statutes regarding the proper treatment. 

2) What are some proven methods of handling this situation, assuming it is legally sound? Holding the prepaid rent in an escrow account? Keeping it in a checking account? I am ignorant on this topic as a landlord.

3) Are there other concerns that I am missing/unaware of? 

I appreciate any and all comments. 

Most Popular Reply

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706
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2,295
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Michael Haas
#3 New Member Introductions Contributor
  • Real Estate Agent
  • 🌧️ Seattle Investor & OG HouseHacker | 🤑 Helped 90 Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | 🏗️ Built 5 DADU's
2,295
Votes |
706
Posts
Michael Haas
#3 New Member Introductions Contributor
  • Real Estate Agent
  • 🌧️ Seattle Investor & OG HouseHacker | 🤑 Helped 90 Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | 🏗️ Built 5 DADU's
Replied

This happens in our market too - usually with Retirees or other folks that have wealth, but not much income. Looks like from other's comments that the legal ramifications are mostly edge-cases. Take the money and security of a sure thing! 

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HouseHack Seattle
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