Would you offer/accept prepaid rent at discount?

[Cornflakes]

Given that saving rate are horrible and unsecured loans cost 8-14% APR, wouldn't it be nice if landlord and tenant can work out a deal for x months of prepaid rent at certain % discount? This can benefit both parties and bypass banks.

If you are a renter who can afford to prepay, what kind of discount would you consider?
Landlords, any thought?

 

[Jonah]

As a landlord I accepted 12 months rent in advance for a discount of 1 month's rent.  I would do the same deal again.

 

[aquabliss]

I was offered this before as a tenant but decided against it.  What if the home gets foreclosed upon while you're living there after you've prepaid.  Very unlikely you'll see that money again if your landlord is in financial straights.

Especially with Irvine rental prices, paying a years worth at $20k-$30k cash isn't worth the risk to save a grand or 2.

Also when the landlord offers you this doesn't it make you wonder if he knows something you don't?

I'm sure there's some craigslist scam of landlords offering great prepaid discounts on properties they don't own.

 

[Cornflakes]

I was offered this before as a tenant but decided against it.  What if the home gets foreclosed upon while you're living there after you've prepaid.  Very unlikely you'll see that money again if your landlord is in financial straights.

Especially with Irvine rental prices, paying a years worth at $20k-$30k cash isn't worth the risk to save a grand or 2.

Also when the landlord offers you this doesn't it make you wonder if he knows something you don't?

I'm sure there's some craigslist scam of landlords offering great prepaid discounts on properties they don't own.

Good point aquabliss. If I am prepaying, I'd ask my landlord to show the latest mortgage statement. It shows the name, balance, and status of the account. If landlord has decent equity in home, he/she is not going to just walk away. Gone are the days....

 

[paperboyNC]

I was offered this before as a tenant but decided against it.  What if the home gets foreclosed upon while you're living there after you've prepaid.  Very unlikely you'll see that money again if your landlord is in financial straights.

Especially with Irvine rental prices, paying a years worth at $20k-$30k cash isn't worth the risk to save a grand or 2.

Also when the landlord offers you this doesn't it make you wonder if he knows something you don't?

I'm sure there's some craigslist scam of landlords offering great prepaid discounts on properties they don't own.

I'd be more inclined to do this if I rented from an apartment complex. When I rented from an individual I threatened to move out or withhold rent when they gave me a hard time about fixing a significant maintenance issue. If I had prepaid rent I wouldn't have had any leverage.