Your thoughts: Thinking about paying the rent up for a year. (Atlanta: apartments, rentals)

[Rocco Barbosa]

Some of the regular readers are aware of my anticipated move to Atlanta.

Issue is, being that I am out of state my job interviews are coming in slower than I expected. I've had a few but no offers.

I have a side business, online. It's brings me in $4,000/month. I've had this business since 2008. It's very reliable and stable income.

I was going to give it 2 more months and had I not not found an acceptable job by the end of August, I decided I was going to fly down to Sandy Springs for 2 weeks and find an apartment. I was thinking since my only verifiable income would be my online business, I could also pay the rent up for a year, as long as I spend no more than $850 per month for rent($10,200/yearly)

I'd still have plenty in savings and my monthly online income.


Your thoughts and perspectives?



Thanks as always.

[PKCorey]

I would offer 3/6 months upfront, if that's your concern.

[Rocco Barbosa]

Originally Posted by PKCorey

I would offer 3/6 months upfront, if that's your concern.

Thanks for the reply.

So, do not offer 12 months?

[onemanarmy]

Honestly, Atlanta is not a market where 12 month upfront payments for rentals are required. Typically, apartments will either due employment verification or asset verification i.e. savings and checking. I can't imagine you would be denied if you have good credit, 4k in monthly income and 10k in cash job or no job. The eviction process in GA is really quick, so a 1-3 month deposit usually will cover it. Keep in mind self employed individuals usually have to provide tax returns for employment verification.

[Rocco Barbosa]

Originally Posted by onemanarmy

Honestly, Atlanta is not a market where 12 month upfront payments for rentals are required. Typically, apartments will either due employment verification or asset verification i.e. savings and checking. I can't imagine you would be denied if you have good credit, 4k in monthly income and 10k in cash job or no job. The eviction process in GA is really quick, so a 1-3 month deposit usually will cover it. Keep in mind self employed individuals usually have to provide tax returns for employment verification.

I operate as a sole proprietorship and claim everything on my 1040. But, I do have itemized returns(form #2) and financial statements. I have a good amount in savings and my 401K, IRA, etc...

[netdragon]

As a landlord, I wouldn't do it. To lower rent, you need to sign a 12-year or longer lease, not pay in advance. Bank statements should be enough for income verification, plus signing to allow them to run a credit check / background check. As far as I know, the Atlanta market never requires more than a month upfront plus deposit. Even in my ghetto investment property, the most I've ever considered asking for is a couple months plus deposit. If you pay more, you put yourself at risk.

[netdragon]

Also, are you opening your business in Sandy Springs? You should figure out where you're going to do business first, then find a place.

[Rocco Barbosa]

Originally Posted by netdragon

Also, are you opening your business in Sandy Springs? You should figure out where you're going to do business first, then find a place.

It's online. I operate online. I'm a drop shipper/Amazon-FBA merchant. I do business online. All my products are fulfilled and shipped by Amazon. I don't touch anything. I order my inventory from my distributor, they send it to my Amazon warehouse. Amazon deposits my check.

[Atlanta_BD]

Originally Posted by Rocco Barbosa

It's online. I operate online. I'm a drop shipper/Amazon-FBA merchant. I do business online. All my products are fulfilled and shipped by Amazon. I don't touch anything. I order my inventory from my distributor, they send it to my Amazon warehouse. Amazon deposits my check.

Are you considering this to secure a place while you look for a job there on the ground? Perhaps you can look into a month-to-month option? It might cost a little more though.

ETA:
If you can pay that much upfront in rent, why not just buy a place? You could find a one bed-room condo at a decent price I'm sure.

[PKCorey]

Originally Posted by Rocco Barbosa

Thanks for the reply.

So, do not offer 12 months?

I wouldn't. That's too much cash to give up for them.

As others have said, find out what the complex says first. Counter offer with 1-3 months and see if they will accept it, if you are denied due to your job. I don't see a problem, if you are clearing 4k a month. Most complexes just want 2-3x for rent so you would be pretty safe with $4k a month.