Quick question guys how do you all prevent your tenants leaving without paying for their last month?
Brynn Webb: We charge some security deposit, first and last months rent at time of lease signing.
Zoey Oliver: Hah, thats easy. They pay me last months rent before they get the keys!
Rowan Lopez: I collect first, last, and half security
Evelyn Hamilton: That makes a lot of sense.
Avery Padilla: Take first, last and a deposit. In the San Francisco area I was able to ask for four months in advance.
Aleena Snyder: In some states u can only ask for max of 2 months
Bradley Knight: 4 months rent in advance?? Thats fucking greedy right there.
Sylvia Paul: Those are the types that make landlords look bad
Bradley Knight: Yes They do. And I am not in Oklahoma any more. I am in Seattle. And I still think even asking for 4 months rent up front is ridiculous. I dont car how much money you are losing while you fix it. Its not the renters fault that you cant do remodels in a timely manner. Where ever you are, if you ask for more than first last and deposit, you are greedy as fuck.
Evelyn Hamilton: Wow that is a lot. And people are still willing to pay that?? The back story to this question is my father in law is having a monthly problem at least once or twice a month a tenant skips without paying and sometimes they owe an additional month besides that one. We are trying to figure out how to cut that down because it is around a 12 -15% loss in revenue
Isla Klein: You must have security deposit and an advance deposit in your lease contract.
Emmanuel Thornton: It depends on what is legal and customary in your state. I had property in SF and we did 1st, last and 2 months security. In OK, I just do a months security because most renters cant scrape that much together… Bradley Knight: – you shouldnt comment if you know nothing about the market. In the Bay Area… its VERY expensive to get things fixed. Most are condos or TICs.. you need to go through board approval in order to do ANY work on units. That means your unit stays vacant if the tenant trashed it. You can barely get units for less than 1 million. Rentals can be between 5-8K. Think about a mortgage adding up for 3 months before you get board approval with contractors that carry the right amount of insurance as specified in your HOAs, If the work gets turned down or the board doesnt meet… or whatever else can come your way… you are out of luck. I know because I was on the board of a 250 unit condo association. Good contractors are hard to come by and there is so much development going on that you cant get on anyones calendar for MONTHS unless you keep them on payroll… its a bit different than living in Gove, OK. And I know because I live in OK, too. Cash flow is so much better here and much so much more landlord friendly than SF.ðŸ¤£
Alexa Moore: More screening. Chances are this isnt the first time these people have done it so make sure previous landlords are actually called to verify rental history.
Kelsey Waters: Get first and last month rent in the beginning. My team get our tenants SS card and pay check stub. If they skip, we file with the court, and go after their property (car), bank accounts, etc. We dont play that nonsense.
Lena Burton: 3x rent. First,last and deposit. Rent $800 $2400 to move in.
Gracelyn Perkins: Personally, after they missed the first payment I start sending out 10 day vacate notices….to start the eviction process……If tenants understand you are quick to evict they pay accordingly….and I try to screen thoroughly to ensure they dont have prior evictions or bad debt within the last 12 months……if you skimp on the credit/background that is a real risk of getting ash and trash tenants…..Bullshit in is Bullshit out……so we cant stop somethings from happening but we can do our part and ensure our tenants have a good history and if they have some bad credit ensure its not current…if its current thats a red flag….
Evelynn Mullins: I dont charge 1st and last because its a lot for the renter. If they decide to not pay their last month, just as any other month they may decide not to pay, an eviction notice(3 day) will be placed on the door and then if they dont pay they will be served and then blah blah blah until i get my money plus the late fee :D. Also in the lease it clearly states that the deposit will Not be accepted in lieu of rent, they are separate. Screen well
Evelyn Hamilton: Guys I really appreciate all the help and comments. It is something to really consider and for the most part it seems like a unanimous solution so Im assuming its a standard practice
Blakely Garrett: I would advise better tenant screening. Getting the highest rent doesnt always mean the highest net profit. Professional renters will agree to high rates as they dont plan on paying any ways.
Lia Huff: Following
Leila Haynes: First and last months rent and a reasonable deposit for damages, repairs, etc.
Kyler Lane: Screen your tenants better.
Alayna Hernandez: Non-refundable move in few of one months rent
Alayna Hernandez: Fee. Its s fee
Steven Quinn: My dad does 1st month and security deposit and if they cannot pay for last month upfront, hell work it out so that they pay a little extra the first few months until they pay down last months rent.
Jorge Santiago: I would say that your contract needs tightening up when it comes to the security deposit, as Im assuming they think its fine to use it for last months rent. It should state very clearly that it cannot be used for last months rent. Also your property may be in an area that is more depressed, I have one like that , I learned a long time ago that its better to let it sit without renting than to accept a tenant that has poor credit, screen particularly carefully.
Kendra Hardy: Our security deposit is close to twice the monthly rent. In this tight market Lessees have not even balked. Then you can proceed with eviction if they withhold and have plenty in reserves to cover attorney, excessive wear and tear, etc. Sounds like you might want to start by screening better.I have to say that we have been fortunate to have had some great tenants.
Payton Stanley: Set clear expectations upfront, specific wording to that effect in lease and a letter about 60 days before end of lease inviting them to renew and reminding them of the clause and expectations.
Maliyah Reese: Use security deposit
Kynlee Cummings: It depends on the laws in your region. In Alberta, we may not charge a security deposit greater than one months rent. However, the tenant cant decide to use the security deposit as last months rent. The day after rent is due, we send them a notice stating if they dont pay by the end of the day, we will file an application at the tenancy tribunal. Then well have an order for them to pay rent (in addition to having the deposit available to cover damages), and they will have a black mark on their permanent record. If they pay prior to the hearing, we cancel the hearing and they have no black mark against them.