If there is no state law regulating last month BY all means collect first, last and deposit in a payment method that is not personal check such as CASH so nothing can bounce as part of the the 24 month lease , this way lower risk of tenant who got a discount on the longer term lease from just pulling up and leaving you ( yes it can still happen) if the tenant happens to still be there and you both appear to be very pleased with each other and your going to offer a renewal to tenant but with increase make sure its written into the notice that offers the increase that the pre paid last months rent must also be brought up to be current , so that way If this customer stays on for 6 yrs , they started with you at 800.00 per month and pre paid you last month 800.00 but the rent had gone up to 900 . with out having the amount of pre paid last month increased with each renewal as well you would be short by the difference and look real bad in court trying to ask for it. Same deal if you have one who stays on for historic lengths of time (lol) the original deposit isnt going to cover anything , the second apt I rented 4/79 I paid 145.00 first month and 75.00 deposit and my LL never increased the deposit during the time I lived there as a month to month renter , I moved out last day of Oct 87 and even though I was given full refund of my deposit, if I had left damage over and above normal wear and tear but not excessive my LL would have been spared some hassle if he had increased my deposit periodically just to keep it more current with the other rents in the building.
