Would you accept this deal?
 

Let's say you're looking to rent your house for $3,000 a month.

An interested party sees the house and likes it. He offers to pay $2,700 you 6 months in advance (right now) but at a price of $2,700 per month: $16,200.

Would you take it?

I'd take it you got 6 months $16,200 maybe the next person you rent to only stays for 3 destroys the house and you have to sink money into it and nobody else wants to rent it i'd take the 6 months.

absolutely...


be happy to have a tenant for 6 months prepaid, no messing about. Never be greedy in life :thumbsup

Hmm sounds like someone who dealing with drugs lol

No, forget about the house. It could be a garage or whatever.

Not if they offer you a cashier's check. By the time you find out it is fake, they have cleaned out your house.

Imagine it's cash.

Generally yes. This is the same tactic we use when negotiating rents, leases, even HOA fees.

Yes.....

It's a standard negotiation deal. I have done these to other people, other people have done these to me. It all depends on whether or not you think you can sell the item at full price and if you want to deal with the hassle of maintaining the deal throughout that stretch of time. Also consider whether or not you can do something more beneficial with that cash right now instead of stretched out.

If you don't need the money and can rent the property out easily, you have the upper hand. No need to make the deal.

If you do decide to take the cash up front, counter with 5% or less for 6 months, 10% for 12 months. The other party's offer of 10% is them pushing the limits and testing you out.

:thumbsup:thumbsup:thumbsup

the most important thing is not the deal or the economics. its whether you can trust giving over your property to a stranger for any time & trust he or she will take care of it.

AKA the credit score is king.

:2 cents:

Just get everything in writing

Exactly what he said.

I would want to see their credit report and get a bank reference.

1. Have them ACH you the money and take occupancy after you receipt the money.
2. You would want a security deposit of the customary amount when their credit balance declines toward the last 2 months.
3. You want a clause for on site inspections the 1st of every month if you are concerned about property damage or abuse.
4. If it is commercial property the tenant would need to furnish the proper licensing and use permits.
5. Any unlawful use would be subject to a court eviction and make sure that balance of the rent paid in advance is yours as liquidated damages in that event.

Anyone legit should not object to these terms as they are reasonable.

*Not legal advice offered in conversation only. Pay an attorney to draw the lease so that is enforceable in your jurisdiction.

take cash upfront then dont rent him house.

So that's a 10% discount? Can you make up for the discount with the $16,200? Can you take that $16,200 and make more than $1,800 in 6 months?

If yes, then maybe
If no, probably not, unless I needed cash

No...I am in this situation a lot and 2/3 of people rent anyway if you say no to the proposed discount...10% is not a deal breaker for most so why give it away...B Jew about it IMO

accept the deal

Yes, not much to think of here

I agree with Joshua G .....

Call the medics .... :1orglaugh

On subject, get references, job status, criminal background check ....

Yep, cash is already there

If someone offered to pay you $1,000 to rent your newer Mercedes for 2 weeks would you take the deal -- take the money and give him the keys?

It can also depend on if you can churn out +10% profit on your investment in 6 months.
Not applicable to average joe, but probably the main deciding factor for someone with entrepreneurship skills or even for someone who owns a business etc.

Most of them obviously would take the deal as if you run business or if you run deals you can make more than +10% in 6 months.

I will and you should too.

I will take it as it is sure $ for 6 months. It's like giving a client a bulk order discount. ;)

Yes - after I had suggested that I will accept $2850.

I have hundreds of rental units. Don't do it. A) dont rent for just six months on a nice house. B) 10% of the gross is huge in rental housing. And in that price range you are not getting a huge rent as % of the value.

Also anyone paying that much should have a good job, decent credit and references. The rent should not be difficult to get.

Good point -- single family homes are not that easy to rent out in many cases -- commercial or industrial property being much harder to lease. Vacancy time is costly. If anything a short term rental should cost more as you will have vacancy time until you are able to rent or lease that property again.

I think the problem here is that people are responding to a real property question like it is a disposable or short term personal property transaction; with a useful life of a less than 12 month to few years at most.

If you churn your tenants in less than 6 months you have a real problem. Is it a problem property to rent -- then is is worth considering.

I would take it. You are free of problems for 6 months...just accept it