1. Tenant may break lease for whatever reason they come up with and prepaid rent can cause litigation.

 

2. Something may happen to the property and prepaid rent can cause litigation.

 

3. The tenant can file bankruptcy and you can be drawn into litigation by the Trustee regarding prepaid rent.
    
4. The tenant may be hiding money and this can be a fraudulent transfer so the rent may have to be frozen or returned to someone else.

 

5. You can’t give it all to the owner, you must give the monthly rent out each month.

 

6. It causes unnecessary excess money in your trust account and more trust accounting work.

 

7. The parties may divorce or one may vacate and this causes litigation.

 

8. The tenant may be in lease violation and prepaid rent will complicate the eviction and may cause you to lose.

 

9. The tenant may die and you can get dragged into a probate case.

“Serving the Property Management Professional”

www.evict.com      www.evicttv.com      www.evictforms.com      info@evict.com