Is it legal for tenant pay rent for full year upfront?

[Helpmeee]

What is the name of your state?Florida

Hi everyone, I manage my parents investment property and I found a tenant that wants to pay the rent in upfront for the full year, I read that this can be illegal? The property is in Florida, does anyone know if we could do this? I don't want to get them or myself in any trouble since I just got my real estate license a few months back.

 

[FarmerJ]

Was this prospective tenant offering to pay the rent in cash ? ( it makes me wonder if the money was dirty - drug or gained from criminal activity ? ) is the prospective tenant a citizen ?, I only ask that because if they pre pay a year and trash the place before going back home then its good odds that you are never going to get a dime out of them once they leave. Your state government web pages for landlord and tenant should be able to guide you, If you do not find a statute that bars prepaying the rent for a year then you might want to just use the links above to consult with a atty to make sure. A possible better choice if the tenant has a poor credit history might be First month rent and deposit and the last two months of rent pre paid with a certified cashier check drawn from a bank well known to you personally or only accept cash for that first payment. The idea is that they have enough skin in the pot that they aren't likely to just start refusing to pay rent.

 

[quincy]

Here is a link to Florida’s laws about advance rent payments and how landlords must handle them:

https://www.lawserver.com/law/state/florida/statutes/florida_statutes_83-49

 

[LdiJ]

What is the name of your state?Florida

Hi everyone, I manage my parents investment property and I found a tenant that wants to pay the rent in upfront for the full year, I read that this can be illegal? The property is in Florida, does anyone know if we could do this? I don't want to get them or myself in any trouble since I just got my real estate license a few months back.

There is nothing "illegal" about it. There are some rules you have to follow, but its not illegal. I disagree with the advice that you got from FarmerJ because that can happen with someone who is paying on a month to month basis just as easily as someone who pays upfront for the whole year.

 

[quincy]

To be sure the advance rent payments do not complicate your parents’ financial situation, it would be smart for you/them to discuss this with an attorney in your area.

 

[xylene]

A tenant offering to pay a full year is a tenant to avoid.

 

[quincy]

A tenant offering to pay a full year is a tenant to avoid.

It can make life more complicated for a landlord in many ways but I can understand how a tenant might like to pay in advance.

 

[Helpmeee]

Was this prospective tenant offering to pay the rent in cash ? ( it makes me wonder if the money was dirty - drug or gained from criminal activity ? ) is the prospective tenant a citizen ?, I only ask that because if they pre pay a year and trash the place before going back home then its good odds that you are never going to get a dime out of them once they leave. Your state government web pages for landlord and tenant should be able to guide you, If you do not find a statute that bars prepaying the rent for a year then you might want to just use the links above to consult with a atty to make sure. A possible better choice if the tenant has a poor credit history might be First month rent and deposit and the last two months of rent pre paid with a certified cashier check drawn from a bank well known to you personally or only accept cash for that first payment. The idea is that they have enough skin in the pot that they aren't likely to just start refusing to pay rent.

Hi thank you for your advice, actually I did a criminal bankround check and credit check, the background check was clear and the credit check was really good both had credit scores over 730.

Before checked their background and credit I wanted to know how they could afford to pay the full rent in advance, and the husband actually had gotten a lawsuit from a car accident that caused him to be disabled, he used to work for the county, so I made sure it was not drug money, and he would do a bank transfer.

 

[Helpmeee]

A tenant offering to pay a full year is a tenant to avoid.

Why would that be if the tenant has a perfect backround check. Credit and references with the property manager who managed the property they currently live in now?

 

[quincy]

You should check to see how paying a year in advance will impact your parents. If they are limited as to how much they can make before they lose benefits, for example, you might find that a tenant who pays monthly is a better option.

 

[Helpmeee]

There is nothing "illegal" about it. There are some rules you have to follow, but its not illegal. I disagree with the advice that you got from FarmerJ because that can happen with someone who is paying on a month to month basis just as easily as someone who pays upfront for the whole year.

Thank you, I will definitely look into it,crush actually sound like the perfect tenants, perfect background and credit and perfect references from the property manager where they have lived for the past 5 years, they are only moving because the house is being sold, so for me they seem like the perfect tenants and also they offered to pay upfront because we had many other people interested in the house, and they gave us an incentive to rent to them, which to me would be great as the last tenants always paid late and it because a pain.

 

[Helpmeee]

You should check to see how paying a year in advance will impact your parents. If they are limited as to how much they can make before they lose benefits, for example, you might find that a tenant who pays monthly is a better option.

Thank you, actually my parents still work so they aren't on any benefits, but I understand what your saying, but the previous tenants paid late every month and it was such a headache, so since everything about these tenants sounds good plus them paying in advance would be a good thing.

 

[quincy]

Thank you, actually my parents still work so they aren't on any benefits, but I understand what your saying, but the previous tenants paid late every month and it was such a headache, so since everything about these tenants sounds good plus them paying in advance would be a good thing.

It could be nice to have a tenant who has paid in advance but read through the information in the link provided earlier because there is much you must do with these advance funds that is not required of payments received from tenants each month.

 

[xylene]

A Tenant who wants to pay a year in advance is a weirdo. They have some weird reason for wanting to do something weird. I mean why would someone with a great credit rating want to do something that makes no financial sense?

 

[Just Blue]

A Tenant who wants to pay a year in advance is a weirdo. They have some weird reason for wanting to do something weird. I mean why would someone with a great credit rating want to do something that makes no financial sense?

I agree. It seems sketchy.