Quote:
Originally Posted by SrslySirius
Back when my credit score wasn't great, I floated this idea to several landlords and was told that it generally doesn't work that way. Something about getting handcuffed to tenants because that makes it harder to evict them.
If the landlord has a mortgage on the property, the documents they signed with the mortgagee probably doesn't allow it.
If the landlord doesn't pay the mortgagee the mortgage payments or otherwise defaults, then one of the mortgagee's remedies typically is to start collecting the rents directly.
If the tenant paid the landlord rent in month 0 for months 1 - 6 and then landlord defaults on the mortgage in month 2, there are no rents for mortgagee to collect from tenant through month 6 because the landlord already took that money. So somewhere (if not in multiple places) in all of the documents that a bank would prepare for the landlord to sign when getting a mortgage there is generally a provision that rents will not be collected in advance. Collecting the rents in advance would be a default and, in addition to other remedies, would allow the mortgagee the option to accelerate the entire amount owed.
New mortgagees may also ask for Tenant Estoppel Certificates to be signed by the tenants and one of the provisions in that is usually the tenant certifying that it hasn't prepaid any rent.
I'm more familiar with a situation where the landlord is renting property for commercial uses as opposed to residential but I think it is pretty much the same.
Smaller apartment buildings or someone who just owns a house and is renting it out may just take the advance rent.