Home Buying in Ventura>Question Details

Beverly Huff…, Renter in Ventura, CA

what is the chance of a reduced rent, no deposit, with a lock in price if we pay 6 months at a time?

Asked by Beverly Huffman, Ventura, CA Mon Jul 8, 2013

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Most landlords want a deposit to ensure that the property will be taken care of and left in the same condition as when the lease is signed. Also most of the time when tenants pay a six month lease or more, it is if they have bad credit or are trying to reassure the landlord good faith. Everything is negotiable and if the landlord agrees to doing a lease with out a deposit, then it is possible but highly unlikely.
0 votes Thank Flag Link Mon Jul 8, 2013
Highly unlikely.

I'm a landlord. If you could afford to pay 6 months up front, I'd insist that you use a month's worth for the deposit. (In fact, I'd insist on a deposit in any case.)

You say "a lock in price." Do you mean for a rental or for a lease-option? For a rental...sure, within reason. And that's usually the way it is (and should be) done for a lease-option.

Reduced rent? Probably not. Over what period of time?

You're assuming, I think, that paying 6 months at a time gives the owner some great advantage. It really doesn't. Example: Let's say your rent is $2,000 a month. Interest rates are close to zero. But, just so we can work with a number, let's say 5%. You pay 6 months in advance. A normal rental pays one month in advance. So you're giving the owner an additional $10,000. What's the interest on that? 5 months of interest on the farthest-out payment and 1 month of interest on the closest one. That's roughly $600--or about $100 a month in interest (if I could get a 5% return). Let's say I split that with you. That'd save you $50 on a $2,000 a month lease. I doubt that's what you had in mind.

I certainly wouldn't do any of that without a deposit.

Hope that helps.
0 votes Thank Flag Link Mon Jul 8, 2013
re reading your comment, one question? what do you mean IF I CAN AFFORD TO PAY 6 MONTHS RENT? it almost sounds as if you are demoralizing me, just because I am renting, am I not to have money in the bank, or be allowed to save it..I see you are in VA. good thing I suppose, because I don't think I would want to rent from you even if you had a reasonably priced nice home in the area I am looking .
Flag Mon Jul 8, 2013
and you are looking at it from a landlord perspective, what about the tenant, or do you not care about your tenants? by advancing 6 months rent it makes it much easier for the tenant to save their money, ensuring that they have money in the bank , Which ensures the landlord of payment. As a renter and a previous home owner I can see both sides of the coin, No one wants to rent to someone that will not care for the property they are in, we have always been excellent tenants, we've been in this house for about 4 years and in that time we have put in a huge lawn (this lot is about 9,000 sq ft) we have added a 26x15 patio, landscaped the yard and taken care of all the little incidentals. at no charge to the landlord. The house is clean and well taken care of.
Flag Mon Jul 8, 2013
Don Tepper, Real Estate Pro in Burke, VA
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It doesn't hurt to ask I guess. It would depend upon the landlord. If it were me I would consider slightly reduced rent in return for several months up front payment but I would still want a security deposit.
0 votes Thank Flag Link Mon Jul 8, 2013
I can appreciate that Thomas, its nice to know there are still some landlords out there that would try to help others out , especially when "those" others are paying the mortgage or an income to them. I certainly understand that not all tenants would care about the homes they rent, but there are still some of us that take pride in where we live, and we shouldn't have to feel as though we are being taken through the coals.
Flag Mon Jul 8, 2013
It's possible. Not very likely, but possible. Why no deposit? Which property? thanks!
0 votes Thank Flag Link Mon Jul 8, 2013
No particular property yet, we are planning to make the move in the near future, I care for my mom full time and the desert is just to extreme for her. but we will be looking in the Ventura or Camarillo area. my sister is in Camarillo, and a cousin is in Ventura.
Flag Mon Jul 8, 2013
that was ", now I'm certainly not saying that the appreciation value should NOT net a bigger rent, because it should, but for the average family it is sad that so many would try to take advantage of those who pay the rent or the mortgage payment.
Flag Mon Jul 8, 2013
I am a bit baffled by the prices in the Ventura county, I've been around to see some of these same homes were renting for 600.00 a month in the 80's, now I'm certainly not saying that the appreciation value should net a bigger rent but for the average family it is sad that so many would try to take advantage of those who pay the rent or the mortgage payment. I would definately think to have your properties rented by people the actually care about the property they live in and actually take care of it, and often times add improvements to it would be an extremely important factor.
Flag Mon Jul 8, 2013
by the way I'm not opposed to paying a deposit, but we, just like you are trying to make a living so we can pay the over priced rent
Flag Mon Jul 8, 2013
well I would think that a security deposit would primarily be made to insure the tenant does not run out on the rent. If someone were offering to pay 6 months in advance that would probably secure the fact that they would be staying.
Flag Mon Jul 8, 2013
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