Any experience prepaying year's rent?

What kind of landlord? Individual - domestic or foreign? Big corporation?

I did it recently, notwithstanding the conventional wisdom that it's not worth the risk of not being able to withhold rent if there's an issue (although note that most leases prohibit this anyway) and the more theoretical risks of the landlord being foreclosed out and the renter losing the credit for the prepaid rent (many landlords' lenders will also prohibit any sort of prepayment of rent more than a month in advance) and needing to break my lease during the middle of the year. I took the risk because I got what I thought was a pretty good discount (just under 20%). I tried to do it again when my lease was up for renewal this year and my landlord said he couldnt because his new loan prohibited it.

many landlords won't do it.

Set the rent money aside, and pay the rent as the months progress.

> Set the rent money aside, and pay the rent as the months progress.

the whole idea behind it is to get a 'discount' on the rent b/c the landlord gets his/her money right now, i.e., time value of money ?

honestly, if rent lords are smart, they would do 2 things right now
1) ask for 2 year lease
2) not allow prepaid rent in order to get a discount

b/c i believe we've reached peak rent ...

Also, does it get by the salary requirements at some of these property management firms?

Peak rent sustainable? How many more apartment shares will people be willing to deal with? Are we getting to the point when the internet bubble in Silicon valley was charging to house people based on how many square ft your body took up when lying on the ground?

It's too risky, that is why I said to set the money aside. Also, the plan has not been agreed upon, that is why I said to set the money aside. I'm dealing with the current situation.

Too, the OP's rent is contractual, why would the landlord want to accept rent a year-in-advance at a discount? The landlord would gain a year worth of rent in advance, but that gain would be at a loss in contrast to the lease. If it were me, I'd set the rent aside, and pay it month-by-month. Honestly, I do not see this as a win-win situation.

Most landlords won't or can't accept a year prepayment; however, some may require either a letter of credit or guaranty for a year's rent if you have liquidity and assets but insufficient income.

I can pay a year's rent up front (I saved a lot) and don't make the 40X salary requirements, so the only time I've discussed prepayment is when my landlord wanted me to get a guarantor...I just replied..."how about I pay the year's rent up front"? It was a rent stabilized apartment so the landlord couldn't take rent up front, but I was convincing enough (it was the truth) that they didn't require me to have a guarantor. If you use insurent or other companies I think that costs $600 per year, so I considered myself pretty lucky.
I have never been able to negotiate any deal off the monthly rent by telling the landlord I will pre-pay.

what is the general/most accepted way to calculate salary? Is it just base? Or is it full year comp?

I'm asking due to the fact my spouse will no longer be working, but a good amt of pay is in the backend so prepaying is a rather great option if it existed.

>Most Landlords WOULD LOVE to accept a year up-front if they could. Depending on circumstances for the apartment (rent-stabilized or other rent calculations),

Agreed, second reason they cant collect a year upfront is if the have a commercial loan on the building. If you were a bank would you allow the possibility of a delinquent landlord on their mortgage collect a full year's worth of income from the building?

And, if the landlord would accept rent in advance at a discount for the tenant, how much would the discount be, realistically?

str33teasier
2 days ago
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Member since: Feb 2010
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> Set the rent money aside, and pay the rent as the months progress.

the whole idea behind it is to get a 'discount' on the rent b/c the landlord gets his/her money right now, i.e., time value of money ?

honestly, if rent lords are smart, they would do 2 things right now
1) ask for 2 year lease
2) not allow prepaid rent in order to get a discount

b/c i believe we've reached peak rent ..

i believe you are right.

I did it - got a 10% discount on rent. time value of money... rates where higher back then...

This used to be popular with liquid Wall Street-types and illiquid landlords. With money being free to borrow now, it doesn't make much sense.

Glad to hear some people saying we are at peak rent.

Curious how long it would take for a bank to evict a tenant after foreclosing on an owner, if the tenant had prepaid rent to an owner who turned out to stop paying the bank.

I did a 1-year upfront pay, since I had my own biz and was renting a co-op. Worked great for me as I received a significant discount. Owner was responsive to issues, as was mgmt co. I recommend it.
PS - we are SO not at peak rents, so stop wishing it into reality. Until developers start overbuilding again, rents will continue to rise. Check back in 2014-15

Reallystate, fuck off and dont be presumptuous. I dont want us to be at peak rent, but we are. You can only charge so much for certain things, whether apartments or snything else before people say no thanks and look for alternatives. This has happened.

I attempted to prepay my 2012 rent, but the greedy landlord only offered a 1.64% discount. What a joke

as if he was required to offer you a prepayment discount!

If you invested that cash in anything, you would have made a lot more than 1.64% this year.

good strategy as long as the discount's fare