You may be able to collect a higher security deposit when taking on extra risk instead of extra pre-paid rent.

Should I only accept payments through the end of this year as opposed to the end of the lease (next april 30th).Thanks for you insight.Kyle Hi @Kyle Hipp , I think there can be problems sometimes with a tenant pre-paying the rent, as far as your ability to evict for other reasons, and so it makes sense to me to write something up with the language you wrote above saying accepting the pre-paid rent does not indicate that you have waived your rights to evict, etc.That said, if she's on SSI, she can't have assets totaling over $2,000. 

Prepaid rent is a liability account item as it is not "yours" all in advance, you use it up as you go.

What about them loading prepaid cards and transferring money to you online?

We have our own team of contractors we call when necessary.If a PMs sole job is to collect rent, then a pre-paid self addressed envelop is a whole lot cheaper than the almost $100 per house we currently pay.

Without that, the tenant can claim the old landlord was holding a deposit (and now you are responsible to return it) or that he prepaid rent for the next 5 years and it isn't his problem the old landlord didn't tell you.

Should the tenant turn to be a problem tenant and you want to evict at some point, it will be much harder to convince a judge if rent is already prepaid.

i was able to get abreak down on everything that made it more clear.loan fees orgination fees, recording fees all that good stuff are  $8, 850 really $8,100 because the appraisal was added into that amount  the other $4,031 fees are pre paid fees that im responsible for like my 12 month insurance policy , pre paid interest, and property tax. that i will get  half back once my escrow check gets sent to me. so  my closing cost is really $8,850.

Maybe the tenant is trying to prove that she can pay a years' rent (yes, I'm being optimistic here, but not ignoring the potential pitfalls...)Say that you don't accept pre-paid rent for accounting and tax reasons, but you would be happy to see a "proof of funds" in the way of 2-3 months bank statements.

I would make the security something to be settled between them as well as prepaid rents.