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Full years rent paid upfront

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  • 24-10-2016 10:42pm
    #1
    bensboys
    Registered Users Posts: 138 ✭✭


    Hi,

    We have just found tenants for a property we have available for rent and the new tenants are signing an annual lease agreement for 12 months and have suggested paying the rent for the full year in advance. Is there anything I should be concerned about?


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,395 Mod ✭✭✭✭Gumbo


    Taxes etc remain the same so it makes no difference in that sense.
    Just don't forget to carry out your regular inspections as it's easy to forget once the money is lodged.


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    #3
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    No
    Unless you think you might have to get rid it's a brilliant idea

    Friends of mine are liquid and they got a great deal by doning that


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    #4
    Effects
    Registered Users Posts: 9,760 ✭✭✭Effects


    bensboys wrote: »
    Is there anything I should be concerned about?

    Grow house? Seem really weird to be offering a whole year in advance.
    Maybe they're just trying to make you more inclined to accept them over other tenants?


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    #5
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    People who grow illegal drugs in grow-houses usually pay for 6months+ up front for the houses they rent.


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    #6
    bensboys
    Registered Users Posts: 138 ✭✭bensboys


    Tigger wrote: »
    No
    Unless you think you might have to get rid it's a brilliant idea

    Friends of mine are liquid and they got a great deal by doning that

    Yes that's what I thought, having met them and checked references all seems good. Just making sure I wasn't missing anything obvious!


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    #7
    deandean
    Registered Users Posts: 2,233 ✭✭✭deandean


    First and only time I heard of this arrangement, the was then used as a 'grow house' and it was destroyed after.


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    #8
    CarrickMcJoe
    Registered Users Posts: 3,379 ✭✭✭CarrickMcJoe


    Bet they're going to put your place on Airbnb to make a tidy profit. Guy on LIVELINE had something like 40 properties on the go at one time, all of which he was renting.


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    #9
    bensboys
    Registered Users Posts: 138 ✭✭bensboys


    deandean wrote: »
    First and only time I heard of this arrangement, the was then used as a 'grow house' and it was destroyed after.


    It's the top floor of an apartment, would that make the above scenario unlikely?


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    #10
    Mink
    Registered Users Posts: 2,260 ✭✭✭Mink


    Personally it would make me nervous. I'd accept 2 months max.

    My friend recently rented out her house and one guy called her offering 3 months without even seeing it and it put her off renting it to him.


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    #11
    my3cents
    Closed Accounts Posts: 9,764 ✭✭✭my3cents


    We pay 12 months in advance. Landlord has no problems but we have been here over ten years.


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    #12
    endacl
    Registered Users Posts: 22,307 ✭✭✭✭endacl


    bensboys wrote: »
    It's the top floor of an apartment, would that make the above scenario unlikely?
    Lots of 'ladies of negotiable virtue' as tenants? Renting by the hour...


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    #13
    Mrs OBumble
    Registered Users Posts: 25,965 ✭✭✭✭Mrs OBumble


    my3cents wrote: »
    We pay 12 months in advance. Landlord has no problems but we have been here over ten years.

    I'm curious - why do you do that?

    I'd be suspicious, OP. Why are they doing it? Maybe there is a valid reason, but I'd be asking the question.

    If you do decide to take them, make sure that you keep the money and don't use it until the time it covers has passed - imagine if there was a fire, or you had to evict them for something, and didn't have the cash to pay them back.


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    #14
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    It is possible that their employer is paying the rent and chooses to pay for a year at a time as that may be the length of the employees contract?


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    #15
    volchitsa
    Registered Users Posts: 7,513 ✭✭✭volchitsa


    Why would anyone do that? Seems crazy to me unless 1) the rental market is so unfavorable to tenants that it's a way of getting picked over anyone else (and while it's bad alright, it's not that bad) or else 2) they don't want you nosing around after. At all - not even normal landlord stuff I mean.

    Basically I'd be worried.


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    #16
    bensboys
    Registered Users Posts: 138 ✭✭bensboys


    volchitsa wrote: »
    Why would anyone do that? Seems crazy to me unless 1) the rental market is so unfavorable to tenants that it's a way of getting picked over anyone else (and while it's bad alright, it's not that bad) or else 2) they don't want you nosing around after. At all - not even normal landlord stuff I mean.

    Basically I'd be worried.

    They are a mid 20's couple, they came to Ireland for 12 months to learn English and get jobs along the way. They showed me bank statements with the cash there. I found them to be a lovely couple looking for a life experience.


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    #17
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    kceire wrote: »
    Taxes etc remain the same so it makes no difference in that sense.
    Just don't forget to carry out your regular inspections as it's easy to forget once the money is lodged.

    It will bring the entire amount into one tax year rather than spread over two.


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    #18
    bensboys
    Registered Users Posts: 138 ✭✭bensboys


    4ensic15 wrote: »
    It will bring the entire amount into one tax year rather than spread over two.

    That's what I was thinking might be the case giving me rental income for 22 months (10+12) in 2016


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    #19
    68 lost souls
    Registered Users Posts: 3,990 ✭✭✭68 lost souls


    I would think that it would help them budget if they are here for 12 months then they do not have to worry about making rent every month if it is already done. They have the cash now but may not have it in time to come.


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    #20
    goz83
    Registered Users Posts: 8,034 ✭✭✭goz83


    If you are satisfied with the couple and you do your normal checks, then all should be good. With regards to tax, I would suggest that you could take the remainder of this years rent and then the rest in January.


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    #21
    my3cents
    Closed Accounts Posts: 9,764 ✭✭✭my3cents


    Mrs OBumble wrote: »
    I'm curious - why do you do that?

    I'd be suspicious, OP. Why are they doing it? Maybe there is a valid reason, but I'd be asking the question.

    If you do decide to take them, make sure that you keep the money and don't use it until the time it covers has passed - imagine if there was a fire, or you had to evict them for something, and didn't have the cash to pay them back.

    The money was sat in the bank doing nothing so no advantage to us having it there.


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    #22
    witchgirl26
    Registered Users Posts: 2,146 ✭✭✭witchgirl26


    I know from friends moving to certain countries that 12 months rent upfront is the norm there so maybe they're following that. If you're worried about what they might be doing, just do random inspections and note in the lease that these will happen.


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    #23
    jcd5971
    Registered Users Posts: 2,549 ✭✭✭jcd5971


    I paid a year up front before for rent,
    It was purely for convenience.

    I had been renting the apartment for over a year anyway so trusted the ll but he always took rent by cash, he didn't want it lodged for some reason, and as he lived a few hours away sometimes he might be a week or two late coming to collect rent, and then get dates and stuff wrong etc,

    He is an honest sort tho just a bit unorganised and I always got receipts.

    Now personally I hated having money lying around in cash form I couldn't use waiting to pay rent it drove me mad, so I suggested to pay him for the year. He agreed and everyone happy.

    Sorry for length of post, but just an idea of why Ppl would possibly suggest this.


    Also a grow house :-D come on


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    #24
    volchitsa
    Registered Users Posts: 7,513 ✭✭✭volchitsa


    bensboys wrote: »
    They are a mid 20's couple, they came to Ireland for 12 months to learn English and get jobs along the way. They showed me bank statements with the cash there. I found them to be a lovely couple looking for a life experience.

    Actually I hadn't thought they might not be permanently based in Ireland. That's a fair enough reason, especially as they may have been worried that landlords might not want to rent to "transients" with no links to the country.
    It's just that I'd never heard of anyone doing that, and TBH find it hard to imagine having a year's rental sitting in the bank doing nothing!
    But I remember when I first went to the US, years ago now, having to have money in the bank to prove I was self sufficient, so I guess it's rather like that.


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    #25
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,712 Mod ✭✭✭✭Henry Ford III


    Would money laundering be a concern here?


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    #26
    Eric Cartman
    Registered Users Posts: 26,280 ✭✭✭✭Eric Cartman


    its in a bank account, so I'd be less concerned about the possibility that its a grow op / brothel.

    Get them to pay it via bank transfer and have all your documentation for them to sign. Id probably just ask for a scanned copy of passports as a little more security.


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    #27
    hawkelady
    Registered Users Posts: 1,357 ✭✭✭hawkelady


    Henry Ford III wrote: »
    Would money laundering be a concern here?


    I'm confused. How could it be money laundering. The ll will receive a years worth of rent.


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    #28
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,712 Mod ✭✭✭✭Henry Ford III


    hawkelady wrote: »
    I'm confused. How could it be money laundering. The ll will receive a years worth of rent.

    It's not that usual for someone to pay maybe €18k of rent upfront. You'd wonder the source of those funds.


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    #29
    my3cents
    Closed Accounts Posts: 9,764 ✭✭✭my3cents


    Henry Ford III wrote: »
    It's not that usual for someone to pay maybe €18k of rent upfront. You'd wonder the source of those funds.

    But if it comes from a bank account its not your problem, its the banks problem to worry about and confirm where any cash comes from, once its in the bank then that job is done.


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    #30
    mel123
    Registered Users Posts: 2,208 ✭✭✭mel123


    If i was the tenant i'd be worried about paying this up front and then say not liking the apartment, not liking the area, the landlord not fixing stuff because they dont give a sh*t cause they have their money, needing to go home for good because of an emergency etc.

    Im sure there is nothing untowards about it at all, but i find it very strange a couple would part with money like this for the first time (fair enough a poster above has done it but lived in the apartment before so knew what they were getting).


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    #31
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    mel123 wrote: »
    If i was the tenant i'd be worried about paying this up front and then say not liking the apartment, not liking the area, the landlord not fixing stuff because they dont give a sh*t cause they have their money, needing to go home for good because of an emergency etc.

    Im sure there is nothing untowards about it at all, but i find it very strange a couple would part with money like this for the first time (fair enough a poster above has done it but lived in the apartment before so knew what they were getting).

    Especially as they are only just in the country, I would also have concerns about them saying they are here to learn English and maybe work if they find work, have they the appropriate visas for this? Will there be hassle for the OP if they got arrested and deported?


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