Legal Question in Bankruptcy in California
Tenant wants to pay years' rent in advance, what if BK?
A new tenant for my home has poor credit, 550-599 credit score, & wants to pay a whole years' rent in advance. At $3000 per month, that is $36,000. Can I call that adv rents on Lease, & delineate the deposit at $3000? I'm supposed to approve her & husb as tenants asap. She is in a difficult place, said she is a Realtor, & wants the home for a year & possibly 2-3 yrs. Will do a 1 year lease to start. She has 2 homes in Notice of Default, going to short sale. Her parents can help her out, so thought I should have them sign on as guarantors on the Lease, just for additional security. **Question: Is it legal to collect 12 mos in advance rent?? Will the Courts call it an illegal deposit? If she pays year, of course I know I received rent. However, what if she files bankruptcy? I understand in CA Bankruptcy Court, the Court looks at any pmts made 90 days or earlier to see if considered preferential. Can they ask for the rent back? If I am given in a lump sum, and she owes other creditors from before, it would be preferential. She obviously owes two lenders & said she has not been paying her mortgage pmts, & letting her homes go to short sale, & they might go to foreclosure. She has 3rd home that has equity, they plan to sell.
1 Answer from Attorneys
Re: Tenant wants to pay years' rent in advance, what if BK?
Please resubmit in Bankruptcy Law area.
I note that you have with this one, and I will try to get it submitted in the proper area.
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