Full years rent paid upfront

conf101

Henry Ford III wrote: »

Would money laundering be a concern here?

Renting wouldn't work for money laundering, would it? Once they pay the rent that money's gone

hawkelady

conf101 wrote: »

Henry Ford III wrote: »

Would money laundering be a concern here?

Renting wouldn't work for money laundering, would it? Once they pay the rent that money's gone

Exactly what I was getting at only you explained it a lot simpler!!

foggy_lad

conf101 wrote: »

Renting wouldn't work for money laundering, would it? Once they pay the rent that money's gone

Unless there was some kind of crisis a month in that meant they had to return home and they wanted the remaining rent back. money laundering involves a certain loss so 10-15% might be acceptable?*



*I know nothing about money laundering.

They're not Irish and not familiar with our legal system, tenant rights etc. and have no desire to get involved with irish bureaucracy, courts etc. They may feel that having paid 12 months in advance gives them additional security. In addition, their funds might be based abroad so it might be simpler for them to transfer it in a single go. If their references check out, they'll probably be excellent tenants.

The_Conductor

It was up until recently very unusual to have arrangements like this.
I've come across 3 now in the last week.
In all cases- either 6 months or a full years rent was paid up front (normally by the person themselves, sometimes by their employer- which in the one case I know of- is Intel Leixlip).

Its a good method for prospective tenants to distinguish themselves from other prospective tenants- and in a situation where there is an increasingly vocal minority of tenants getting away without paying rent, and knowing it can take 12 months+ to evict them- its very attractive to many landlords.

OP- providing you have a decent lease agreement- with appropriate safeguards for both the tenant and the landlord- alongside a reasonable inspection regimen (which could be once every 6 months or so- really it depends on the tenant)- absolutely no reason not to go with it.

If I were in a situation like this- I'd schedule some remedial works to the property immediately prior to the commencement date of the tenancy- to enhance the property for the prospective tenant- and to try and shelter some of the rental income from the taxman. Get some tax advice (not in this forum).

Musketeer4

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.

Op, that all makes it sound even more dubious! Foreign bank statements? Perhaps they just got creative in MS Paint?

They might not even be the people staying in the house! They could be just nice decoys sent out to secure it for whatever purposes.

pilly

I don't think it's completely unusual to do it, I thought about doing it before because I had gotten a lump sum of money and I knew then my rent would be paid and I wouldn't spend it.

appfry

I know a landlord who rents out their apartment and when prospective tenants come he tells them that its 6 months deposit and 6 months rent in advance, paid every 6 months. He has two apartments on the go with this and it seems to work out well for him.
He inspects them every 2 months.
He has been doing this about 2 years now.
I was going to do this myself as I rent out my house for 6 or 8 months at a time and thought this might be a handy way of doing it.
Now im thinking of renting it to a friend doing airbnb. eg I rent to him and he does Airbnb.
Not fully decided yet.

karenalot

I've paid 6 months rent up front before while travelling in Australia. I went over with all the savings I had and didn't want the temptation of dipping into them before I had gained employment. If I didn't get a job at least I wouldn't have to worry about a roof over my head.

On the other side I rented out a property in North Kildare this year and received a few offers to pay between 3-6 months in advance. The market is so tough out there people are becoming desperate.

athtrasna

Mod note

No need for race based generalisations. Thanks