Why Would Rent-Stabilization Prevent LL from Taking Rent in Advance??

[hitpausebutton2]

Originally Posted by mathjak107

yes , that is what i said from the start .

iI GET FIRST MONTHS RENT ,LAST MONTHS RENT , 1 MONTH SECURITY !

So do u make them pay for that 3rd month if they move out in the second month? Say feb the are out at the end of the month. u still make them pay for march even tho they are not in it? they gave u notice in feb.

[charmed59]

I’m not mathjak107, but that “3rd month” is a security deposit. If there is no damage when the renter moves out Feb 28th they get that money back. Any damage or days in March they stay is taken out of that deposit, and they get the rest back.

[hitpausebutton2]

Originally Posted by charmed59

I’m not mathjak107, but that “3rd month” is a security deposit. If there is no damage when the renter moves out Feb 28th they get that money back. Any damage or days in March they stay is taken out of that deposit, and they get the rest back.

That is what i was trying to get at.. and i agree with that.. But making them pay that 3rd month and you still have their security deposit is what i cant understand.

[Corn-fused]

Originally Posted by hitpausebutton2

That is what i was trying to get at.. and i agree with that.. But making them pay that 3rd month and you still have their security deposit is what i cant understand.

It is 2 months of "rent" (1st and last month) + whatever amount is allowed (per state) to be collected for a "sec dep". It is not 3 months of rent + sec dep.

Paying that last month of rent is just an extra assurance in case someone were to skip out on paying their last month because they figure that their sec dep can/will cover their last month of rent and that is wrong to assume that. Sec dep is not meant to cover a tenant's last month of rent. So by collecting that last month up front then the sec dep can be used for what it should be used for; damages, unpaid rent, late fees, etc during the course of their lease, if applicable. If there are no damages then you get your full sec dep back. And by the tenant paying that "last month" ahead it means you don't have to pay your last month of rent while living there.

Not all states allow this practice and yet there are some states that allow other amounts to be collected for various things so it is all state-specific.

[mathjak107]

i am done . you guys can explain it to him