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MailsDavis OP t1_j6fhdjb wrote

Reply to comment by jgomez916 in Is prepaying your rent a smart idea? by MailsDavis

Both good points. I’m in NYC. The market is just so odd at the moment, that I’m trying to think of ways to make my application more attractive. Perhaps I could prepay each quarter if allowed, but I’m just thinking aloud now.

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mrdannyg21 t1_j6gf3ol wrote

Doing it for no reason is a bad idea. But if you believe doing it may get you an apartment that you may otherwise not get, it is a fairly cheap and easy way to potentially get a big benefit.

Two main issues:

  • will doing it actually help your application? Maybe - hard for any of us to say. That’s more personal opinion than strictly a finance question.
  • does prepaying hurt your negotiating position if something goes wrong? Certainly possible, though if you’re paying no more than the current year in advance (quarterly would be even better), you probably aren’t hurting yourself much in case of disputes.
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mythirdaccount2015 t1_j6if5vn wrote

I think prepaying by quarter is certainly the better option.

As someone on both side of the rental market (I’m a landlord for a house that I still own, and I rent in a different city), prepaying would make you more attractive as a renter, mainly because it gives the landlord the security, not only that you can afford it, but that you’re not going to leave if you change your mind. But it also puts you at a disadvantage if something goes wrong. Most disputes are not resolved in court because it’s a pain to go through it, so whoever has the money ends up with a huge advantage. I still have two tenants who owe me rent after they broke the lease, and they still haven’t paid.

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jgomez916 t1_j6fiawn wrote

I’m in CA so it’s a different market (unsure how competiré NYC is) but when I was looking for rental I did something unconventional and would write a letter(like homebuyers do to homesellers) and include the link to my FB which was always professional and to my LinkedIn so the home owner would get a glimpse into who I was on a “personal” and “professional level”.

Technically speaking because of fair housing policies they can’t ask for anything of the sort but I found I got more call backs for tours when I did this than when I did not.

If that seems too personal an alternative may be simply making a 3-5 page Canva of what you are looking for in a rental, the type of tenant you’ll be and maybe references idk how non conventional you want to be - IF at all.

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Autogazer t1_j6hhbz0 wrote

I’ve never heard of home buyers writing a letter to home sellers. I certainly didn’t do that when I bought my house. I could see how that would help with applying to rent, not so much for buying a place though.

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wyndmilltilter t1_j6igg7j wrote

It’s been pretty standard for hot (re: coastal/urban-exurban) markets for at least 5 years. Does it make a difference - probably just a little on the margin. Won’t win you against a better offer but all things being equal if you can manage to make a connection in a letter, maybe gives you a slight edge.

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SeminolesFan1 t1_j6hpm0v wrote

I wouldn’t say it’s incredibly common but we did it. It definitely helped us, owners told us, since we were one of 15 offers and they picked ours.

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Justisaur t1_j6idnhw wrote

There was a story I heard recently of a flipper doing this and saying they were a single mom, and negotiating a lower price.

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CaptainTripps82 t1_j6jq78a wrote

I was encouraged to do so when I purchased a home a few years back. The market wasn't as crazy at it's been the last couple of years but it was still competitive and starting to tip towards sellers with a lot of cash buyers around, so it was seen as an edge.

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easybreeeezy t1_j6g41j2 wrote

Omg I get the NYC market lol. It’s not smart but I’m doing the same in a different state for different reasons…. just make sure you have a tight lease cause NYC landlords are sharks.

Edit: also get a NYC real estate lawyer just to double check lease if you’re going through with it.

Edit#2: because I’m still thinking about this and having dealt with a lot of NYC landlords.. no matter how many buildings they own, they will nickel and dime you over everything. Just be careful!

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dontblink_1969 t1_j6hkqlw wrote

My cousin works for a landlord in Upstate. He informed me prepaying in NY is illegal since I was looking to do the same in my state.

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GoBlue2006 t1_j6hlwjm wrote

In NYC as well. Simply showing you have the cash on hand in a bank account via submitting a statement or two in addition earning the 40x monthly should be attractive enough.

As others have said don’t prepay, but showing the landlord you already have the funds will help

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Neither-Swimmer-2723 t1_j6g4egj wrote

I may be wrong but I thought this wasn’t allowed in NYC

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Warm-Tear658 t1_j6hggqb wrote

Genuine question, but why wouldn’t this be allowed?

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OverseasDom t1_j6i852r wrote

It’s illegal to accept or require more than one months rent due at signing to stop slimy landlords from making outrageously expensive security deposits.

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hearnia_2k t1_j6hhdba wrote

That isn't prepayng as much as it is setting the payment period to a higher duration than a month. However, it still sounds like it serves little benefit to me, the only one being that perhaps you're less likely o be evicted for a period you've already paid, but if they really were the type of person (and had legal rights) to evict you quickly I think they'd do it anyway, and just refund you.

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twb51 t1_j6hqroe wrote

Why not just pay when it’s due out of that account?

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OverseasDom t1_j6i7y5d wrote

Just letting you know that attempting to prepay rent in NYC is how you never get approved. Landlords are prohibited from taking more than one months rent at signing.

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onekate t1_j6kj9va wrote

In NYC it’s illegal for a LL to ask for more than one month up front. Showing you have the cash in the bank should serve to make u more attractive.

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Khan_Maria t1_j6h0p8y wrote

You can get money orders to pay for your rent, save them somewhere safe, and drop off the rent when due. The money is already taken out of your account. Unless you cant pay that way, but I wouldn’t recommend it since you’re in NYC. My husband and I moved up and out of the Bronx/Manhattan.

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Startled_pancake t1_j6i5wmv wrote

Best idea would be to move to literally any other city and invest the difference in savings.

And in most places, you could buy a house and start building equity for less than avg monthly rent in NYC.

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saltrifle t1_j6in7da wrote

& you'll also make less than avg $ in most places outside of NYC. It's a double edged sword depending on OP's profession.

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