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How much of a discount should a landlord give for paying one years lease up front? Say the rent is $1,000/month, totaling $12,000/year. Interest rates are so low you are lucky to find a 1/year CD that pays 1.5%. That is equivalent to $180 dollars interest for the year which could be given as the discount. Not much of a discount or much of an incentive for a landlord to accept it up front given the disadvantages described by others here.
i certainly would not give someone a 5% discount if I'm only likely to make 1.5% in interest.
How much of a discount should a landlord give for paying one years lease up front? Say the rent is $1,000/month, totaling $12,000/year. Interest rates are so low you are lucky to find a 1/year CD that pays 1.5%. That is equivalent to $180 dollars interest for the year which could be given as the discount. Not much of a discount or much of an incentive for a landlord to accept it up front given the disadvantages described by others here.
i certainly would not give someone a 5% discount if I'm only likely to make 1.5% in interest.
At the time, interest rates were around 6% +/- with CD rates much higher...
Hi all, reviving this old thread. Have my home on the market and a prospective tenant with family has appeared (been on the market less than a week). Long story short, his company is willing to pay the entire lease term up front. Security deposit and all. Tenants have excellent credit and from FB they seem like good people and have excellent jobs.
Bad news is that it is only an 8 month lease (they are building a home of their own)...should I wait out for a 12 month+ lease? This means my home would be on the market again in February which I know is not the best time.
Never get involved with a business. If they damage the property it becomes impossible to go after them. Not an ideal way to start out just give it a little more time and find someone else.
Never get involved with a business. If they damage the property it becomes impossible to go after them. Not an ideal way to start out just give it a little more time and find someone else.
I didn't even think of that! They (the company+ tenant) would be the ones on the lease. Thanks!
I didn't even think of that! They (the company+ tenant) would be the ones on the lease. Thanks!
That's a big nope. You couldn't ever serve that company and even if you did they will have their lawyers escalate the suite to a higher court which will cost you money.
Hi all, reviving this old thread. Have my home on the market and a prospective tenant with family has appeared (been on the market less than a week). Long story short, his company is willing to pay the entire lease term up front. Security deposit and all. Tenants have excellent credit and from FB they seem like good people and have excellent jobs.
Bad news is that it is only an 8 month lease (they are building a home of their own)...should I wait out for a 12 month+ lease? This means my home would be on the market again in February which I know is not the best time.
Any and all advice is appreciated!
for single family homes in my area, the "average" tenant stays for 4.7 years. The cost to hire cleaners, paint & "fluff" to re-rent is nearly the same if your tenants stay 6 months, or 6 years, plus - with short-term tenants, you might have to argue with them about what "reasonable wear & tear" is for things like carpet. If they stay for 5+ years, you got your money out of your paint & carpet.
So I'd decline this tenant & any other that clearly expressed an interest in leaving, even at 1 year.
Your best tenants will have new $600 phones, two new cars with payments, the "ultimate" cable TV package, jobs good enough to pay the rent, but no money in the bank. Big credit-card bills are a plus if you're the landlord.
I was a horrible tenant, not because I trashed the places I rented (actually left them spotless) but because I had enough money to move & buy when the prices were right. Your best tenants want to buy their own house "someday" , but they probably don't have 802 fico scores, or a plan of how to come up with a down-payment.
Hi all, reviving this old thread. Have my home on the market and a prospective tenant with family has appeared (been on the market less than a week). Long story short, his company is willing to pay the entire lease term up front. Security deposit and all. Tenants have excellent credit and from FB they seem like good people and have excellent jobs.
Bad news is that it is only an 8 month lease (they are building a home of their own)...should I wait out for a 12 month+ lease? This means my home would be on the market again in February which I know is not the best time.
Any and all advice is appreciated!
I'd be curious why the company is offering to pay rent for an employee building a house. If it's a company you've never heard of, I would think perhaps it's the potential renter's own business and he's having the "company" pay for it as some sort of tax dodge.
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