Would you rent to a Realtor?

[scottmandue]

I own (well, the bank does) a lot with two houses. I live in the back house and rent out the front.

I'm an ordinary guy with an ordinary paycheck and the rent helps me pay the mortgage.

Front house was vacated in January and I am motivated to get a renter in there.

For the second time I have a lady Realtor who wants to move in... and for the second time I have been hit with "can I pay you six months in advance?"

I have always had regular folk as renters with a steady income... I suppose a good Realtor could make a good income... but the unstable nature of the biz makes me nervous.

What would PPOT do?

Thanks,

[Tobra]

sure, a tenant is a tenant

If she is going to pay 6 months rent at a time, I would lease it to her 6 months at a time.

[sammyg2]

No!

[porsche4life]

Realtors are people too, like tobra says, do 6 month leases, and take the lump sum....

[Jim Bremner]

is she HOT?

just Kidden, check her credit?

[RANDY P]

Pull her credit and watch how she is with her consumer trades.

You can also ask for her filed tax returns- not the 1099's but the tax returns.

Better a Realtor than an attorney.

rjp

[Porsche-O-Phile]

Maybe say yes, take the six months, write a six-month lease and require them to notify you after five if they intend to stay (if so, payment is due in the sixth month paying ahead for the seventh, etc...) Don't let 'em get ahead of you (as I'm sure you know). I don't really see the downside of someone paying you early.

[Jim Bremner]

Originally Posted by RANDY P

Pull her credit and watch how she is with her consumer trades.

You can also ask for her filed tax returns- not the 1099's but the tax returns.

Better a Realtor than an attorney.

rjp

Better a Realtor than an attorney.
I came back to POST this!

[Gogar]

Whatever my occupation, if my possible landlord asked me for filed tax returns, I'd tell him to suck rocks.

[Porsche-O-Phile]

+1

There are so many "for rent" signs in SoCal these days there's no reason for anyone to rent from someone who's a pain from the getgo. It's reasonable to expect to provide basic information on an application, maybe a credit check (although I'd insist that the LL credit the cost of it towards my first month's rent if I decide to go with them - if "no" then walk) and maybe a 1st/last month's deposit up front if you decide to sign on. Anything beyond that and I would (and have) told em adios.

[wdfifteen]

Originally Posted by scottmandue

For the second time I have a lady Realtor who wants to move in... and for the second time I have been hit with "can I pay you six months in advance?"

Seems fishy to me. Why would anyone pay six months in advance? There is something going on there that I don't understand and wouldn't trust.

[vash]

i imagine a realtor's money running hot and cold. maybe she just wants to pay you 6 months because she has it now..and may not on a month to month basis. not everyone has the dicipline to pay..

i would take the 6 months..dump it into an account and pay mortgage as usual.

you're searching for a tenant now..what's the diff with looking for another one in June? bird in the hand..bro.

[scottmandue]

Originally Posted by wdfifteen

Seems fishy to me. Why would anyone pay six months in advance? There is something going on there that I don't understand and wouldn't trust.

Yeah... and this is the second time... both lady Realtors...

Talked with my dad and he thinks maybe for tax reasons?

[turbo6bar]

Realtor may be preparing to declare bankruptcy. I've seen this more than once. Still worked out. After six months, the tenants paid monthly.

[KFC911]

My .02 worth and based upon experience. I don't do long term leases anymore...strictly month-to-month from the git-go (with a 30 day written notice from either party to terminate). If I get a "loser" (i.e. not taking care of my properties, etc.), then I want them OUT asap, and a lease really only offers protection for the tenant in most cases imo. All of my tenants are m-t-m anyways since they've been with me a few years. Get a security deposit (one month's rent), and I don't see any issue with paying 6 months in advance, but the 7th month's rent is due by the 1st of that month. If not, they're getting a notice to vacate unless it's agreed to in advance. The deposit is "your" protection if that does occur. A realtor...no problem, an attorney...no way !

ps: I've got "stories", but my current tenants are "gold", and they're not going anywhere soon. It's a win-win for all parties involved, and that's the way it should be imo.

pps: Run a credit check, check their history, then take the advance rent with a smile and a thank you!

edited: Jurgen responded whille I stepped away...he's a pro at this stuff imo.

[Rick Lee]

Why would you turn down six mos. of rent upfront? I nervously check my account the first week of each month to see if my tenants have direct deposited rent. They're very prompt and I appreciate it. But they could lose their jobs tomorrow and not make next month's rent. Getting paid six mos. in advance is that much more time you don't have to worry about not getting paid. I'd kill for that peace of mind.

[MRM]

If I could pay the rent on my office in advance for the whole year, I would, for the same reason the realtor wants to. My money comes in irregularly. When it comes in I pay my bills, put some away for working capital, and save the rest. When my billings all come in I could pay the year's rent and be done with it. That would smooth out my expenses for the year and make budgeting that much easier. Plus, it would give me personal security that no matter what, my rent was paid and I had a place to hang my shingle. My partner wants me to pay my share of the overhead monthly, so I just do it that way. The Realtor wants to do the same thing, probably for the same reason. I don't see why you'd turn it down. If she has six month's rent in hand now, odds are she's a good risk for another six month's rent in 5 and a half months. If I were her I'd negotiate two yearly payments and insist on a discount for paying so far in advance.

[Dantilla]

I've had plenty of rentals, and have learned that there are two types of renters:

-Those that bring stories, and those that bring a checkbook.

You want the latter.

I also use only month-to-month rental agreements, and have pretty strict screening standards- Either you are accepted, or not- No grey areas. A realtor would be fine, I don't care, just gotta see the screening report.

The prospective tenant always pays the screening fee, as that in itself does a good job screening. Nobody wants to pay money to be told "No". People that know they will not pass politely tell me they will bring the application back later, and I never see them again.

This has served me well. I end up with quality people.

If the realtor passes the screening, I would be happy to take six months of rent up front. If the seventh month is not paid in full on time, the realtor gets a notice to Pay or Vacate. No rent, and the eviction proccess is started immediately.

[notfarnow]

Originally Posted by turbo6bar

Realtor may be preparing to declare bankruptcy. I've seen this more than once. Still worked out. After six months, the tenants paid monthly.

bingo

[Hugh R]

Would you rather it be vacant for the next six months?

Do as others said and go month to month.