Quote:
Originally Posted by Rick Lee
And what would I do with that three mos. upfront rent? Use it as rent or just hold it as a large sec. deposit? If she moved in May 1, does that means she's paid up for the first three mos. or the last three mos.?
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No way! Think about it - if she stops paying rent, you need to have yourself covered for a period of time. Of the 3 months paid up front, 1 is for the first month of occupancy, the other are for the last 2. So if she runs out of money and starts making excuses, you've got one month to get money out of her, then one month to evict her and find another tenant, all paid for up front. You will have to pay interest on that money, which should be worked into the lease agreement. I would suggest prime, maybe prime + 1, nothing more. As said above, have a non-binding, ongoing lease agreement. Rent rate is guaranteed for one year but occupancy can be terminated at any time by either party with 2 weeks written notice.