Can I Just Pay the Whole Year Upfront?
Applying for an apartment in NYC can be a real hassle. You need to present plenty of documentation to the landlord. Yet this does not guarantee that your application will be approved. You could still bump into problems that would prevent you from qualifying, such as not having enough income or not having good credit. For this reason many renters (who can afford it) wonder if they can avoid the hassle by just paying the whole year upfront.
NOTE: To search for NYC apartments go to frele.com (free service). Or, click for more rental tips
These renters are thinking that by paying the whole year upfront, any “qualification issues” will become a moot point.
Unfortunately, it usually doesn’t work that way.
Why You May Not Be Allowed To Pay the Year Upfront
Sure, there may be the occasional landlord (usually smaller landlords) or individual coop or condo owners who would love to take you up on your offer to pay the whole year upfront. But more experienced landlords won’t accept this kind of arrangement.
Many landlords want to have an ongoing monthly relationship with their tenants. It gives them the opportunity to check in more frequently and assess them on an ongoing basis. Are they paying the rent? Are they paying it on time?
This can also help landlords decide whether or not to offer their tenants a lease renewal at the end of the lease contract.
The last thing a landlord wants is a problem tenant. This is why most landlords would rather take the time to properly vet you and accept monthly rent payments, as opposed to accept the whole year upfront with less vetting.
Having a monthly relationship with the tenant can help the landlord pick up on suspicious activity more quickly, such as:
- Running illegal or unauthorized businesses in the apartment
- Having someone else other than the named lessee on the lease living in the apartment
- Renting the apartment on ultra short term (under 30 days) websites like Airbnb.
Another main reason why landlords will often NOT give you the option to pay the whole year upfront has to do with the end of the lease term. If you have bad credit you may not have a good history of paying your bills. Therefore, even if you pay the year upfront the landlords are concerned what happens toward the end of the lease.
For example, in month 11 or month 12 the landlord won’t have any security from you. What if you just stayed in the apartment for the next 4 months and did not pay your rent? This is what the landlords are worried about.
Please don’t assume that you can avoid the strict NYC vetting process because you have the funds to pay the whole year upfront. Most landlords would prefer a well-qualified tenant over someone who can pay the the whole year in advance.
For more NYC rental tips, please go to frele.com/learn.
This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan
Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry. He founded Leasebreak.com in 2013, and Frēlē in 2017. Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC
Go to frele.com to search for NYC apartments (free service).