Can I offer to pay 12 month in advance in CA (apartment, lease)
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There's a tight rental market where I live, and I want to make it easier to choose the apartment I want. So I want to eliminate my competition, by offering to pay the full 12 month lease in advance. I know that in Ca, landlords can only ask for first, last and deposit. But if I offer to pay full lease in advance, is it legal?
You can offer but I'd venture to guess that you won't have many takers. Landlords in general don't go for this sort of arrangement for a variety of reasons (it's been discussed on this forum many times) and it won't bypass the usual background and credit check procedures.
I've had those offers on one of my rentals due to the location and the high demand. I ALWAYS decline the offer. Many reasons why I decline but I always do. And my policy has changed to the point where back ground checks are a requirement and no renting to friends and family. Got burned a few times and I'm done with that.
There's a tight rental market where I live, and I want to make it easier to choose the apartment I want. So I want to eliminate my competition, by offering to pay the full 12 month lease in advance. I know that in Ca, landlords can only ask for first, last and deposit. But if I offer to pay full lease in advance, is it legal?
If you are otherwise qualified;
you can offer to pay the advance rent upfront. Just make sure the landlord is aware upfront that this isn’t some attempt to circumvent the application process. You will want to make sure the landlord is aware that you will accept an amended lease to indicate any advance payment as meeting the exception under CA Civil Code 1950.5, so that it is not considered a "security deposit". This is what has burned many landlords in the past, they did not set up the exception in the lease and thus the advance payment was just a deposit subject to being refunded if the tenant demands it and it was over the 2 month limit.
Of course you can pay 12 month upfront. Why not. In high end markets you see it more often. In low markets you often see it to scam and to avoid background checks and is hardly ever taken .
For those who said stuff like "LL typically don't go for this sort of things for various reasons"... can you actually list those reasons? I'm curious myself. AFAIK:
1) as mentioned make it clear this isn't to circumvent the usual application process and background checks
2) as mentioned again, make it clear that this is rent $$, NOT a refundable security deposit
3) I've also heard (and this ties in to #1) that once a tenant moves in and pays rent on time, it can be VERY difficult to legally evict him. A background check is in place to ensure the future tenant would be a suitable one in areas other than being able to pay the rent.
As far as the security deposit in CA, for unfurnished unit, the total deposits can only equal 2 month's rent, furnished can be 3 month's rent. They can call it whatever they want, first, last, etc., but total deposits can only equal the above. And there can be no nonrefundable deposits.
For those who said stuff like "LL typically don't go for this sort of things for various reasons"... can you actually list those reasons?
One point which seems to be in the forefront is it raises the question that the applicant may not be a good money manager and may fritter away money in hand irresponsibly. One could argue that, "well, if I have their money then it's not going to be a problem for me" but it could pose a problem if they can't pay their utilities.
It poses additional accounting problems, particularly if the tenant turns out to be a deadbeat and ends up being evicted for some reason. Then you often have to return money.
These may not seem like big problems but they're there nonetheless and are the ones I remember in particular from past threads on the subject. As a former landlord I wouldn't do it and prefer the usual situation where someone pays their rent monthly.
IMO possibly a person who may be hiding something or a bad financial manager
Tryin to evict someone who paid in advance is a grayish area in court and you will have to refund money. Some LL are bad financial managers also and why do you want to give your money up in that amount. Put it in a account let it get some interest and pay rent oh of that account if you're that worried. You can tell thenLL the money is earmarked to the rent
As I said I had a guy ask to pay a full year in advance. Sounded good right? He wanted to pay 12 months but make the lease for 14 months. Combine that with basically a childish tantrum on the phone made it easy for me.
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