Years rent in advance
- Thread starter scott
- Start date
Be wary of a lazy property manager who gets their years rent in advance - takes their one weeks letting fee + ongoing fees + fees for monthly statements - and then does not fulfil their obligations ala property inspections and so on.
I paid 6 months rent in advance (on a 6 month lease) when I first moved into the unit I currently rent. I have been month to month now for 9 months. I've not seen or heard from the PM since I moved in (over 15 months). Suits me fine, but he is not exactly servicing his landlord well.
Moral of the story - if the tenant checks out - get your 12 months in advance, but keep your PM to their side of the bargain, especially since you will be paying for it.
MB
I paid 6 months rent in advance (on a 6 month lease) when I first moved into the unit I currently rent. I have been month to month now for 9 months. I've not seen or heard from the PM since I moved in (over 15 months). Suits me fine, but he is not exactly servicing his landlord well.
Moral of the story - if the tenant checks out - get your 12 months in advance, but keep your PM to their side of the bargain, especially since you will be paying for it.
MB
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I have a tennant who has paid a years rent in advance for the past 2 yrs.
We bought the place from the tennant.
Had a r/e do up the lease ect.we can inspect the ip anytime and it must be left same as the first day of tennancy.
No ongoing p/managers fees.
Put the money in an offset account which reduced the interest payments,plus the money was there for a just in case day.
No down side from our situation.
cheers yadreamin
We bought the place from the tennant.
Had a r/e do up the lease ect.we can inspect the ip anytime and it must be left same as the first day of tennancy.
No ongoing p/managers fees.
Put the money in an offset account which reduced the interest payments,plus the money was there for a just in case day.
No down side from our situation.
cheers yadreamin
Hi Scott
Let the tenant pay the year in advance, but negotiate with the REA to pay them monthly prorata yourself directly. A year's rent in advance in your offset a/c or LOC would help. The REA management fee, usually around 7.7% , covers many duties the PM hasn't performed yet, so no need for them to be paid totally in advance. It could be especially awkward if for valid reasons, you wanted to change REA.
good luck
cheers
crest133
Let the tenant pay the year in advance, but negotiate with the REA to pay them monthly prorata yourself directly. A year's rent in advance in your offset a/c or LOC would help. The REA management fee, usually around 7.7% , covers many duties the PM hasn't performed yet, so no need for them to be paid totally in advance. It could be especially awkward if for valid reasons, you wanted to change REA.
good luck
cheers
crest133
We had a similar situation last year, someone bought a house as an IP and the seller's wanted to stay in the house for 6 months while their new house was being built.
They paid the full amount of rent, up front, at settlement. It was all paid to the owner in one lump sum, less our commission, which we negotiated at a discount, since we didn't have to collect it or send monthly statements.
The deal was a discounted commission for that 6 months, then reverting to our usual rate after that.
It worked really well.
asy
They paid the full amount of rent, up front, at settlement. It was all paid to the owner in one lump sum, less our commission, which we negotiated at a discount, since we didn't have to collect it or send monthly statements.
The deal was a discounted commission for that 6 months, then reverting to our usual rate after that.
It worked really well.
asy
It hasn't happened to me (well, not yet).
A friend of mine sold his house (demands from the ex) and used his half of the proceeds to prepay rent one year in advance.
But then he got comfortable with the low expenses, and didn't quite adjust back when that expired.
He did have some financial problems as a result.
A friend of mine sold his house (demands from the ex) and used his half of the proceeds to prepay rent one year in advance.
But then he got comfortable with the low expenses, and didn't quite adjust back when that expired.
He did have some financial problems as a result.
