A majority of people prefer holding cash even for a short duration of time because they do not want to miss an opportunity that may or may not come at any time in the future. On the other hand, some people hate the hassle of having to spend time and energy to pay time and again.

The latter group often end up paying advance for a couple of months, or even a year to get the hassle out of the way. Rent is no exception to this case since you won’t be moving locations in a duration of a few months.

Here are the implications of paying rent in advance:

1. High Number of Competitors:

It is a wise decision to get the upper hand by pleasing the homeowner and showing the commitment if the apartment or house has the best deal in the market. There will be dozens of people in line to get the apartment or house first. Right price and a great place! Do not rush to pay an advance today even though you have a high number of competitors. You do want to be careful of a few issues.

Be careful of frauds while paying advance! They might deceive you even though they are not homeowners. Before paying the advance, research the landlord and the property, as well as hire a real estate agent for any concerns.

2. Discounted Rate:

As with any product, buying bulk often comes at a certain percentage of the discount. It is similar in the case of rent also. It is a good idea to pay advance depending on the circumstances. For instance, a landlord might offer you paying rent in advance. It is beneficial for you as well for your landlord to secure a particular property on the rental market and to get a discount on rent. Homeowners will also be free from collecting rent every month.  It is not always reliable to pay the rent in advance. You are taking a risk by paying upfront. You have to move out if the place burns down or there is a flood. You might not even get your money back in most of the cases.

Sometimes it may make sense if there is a benefit sweetener to you. You’ll have to determine whether or not it is the right incentive for you to jump on it. A 10-per cent discount might make paying a full year in advance a good option, but only if you are sure the landlord is stable and you’ll be able to get your full year of residency. A smaller discount might not be worth the risk.

Make sure the landlord is stable. If not, you will make a foolish move to pay advance and still not get a discount scheme from the landlord. However, in an exceptional case, it is beneficial as it comes with benefits. So, take full advantage when the opportunity comes.

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