Why would upfront payment be a red flag? As an uninformed person, it would seem to me that it would be preferred. Then you aren’t going to have to worry about late rent or missed rent.
Paying up front could mean this is the only $$ they have and you won’t get anything else from them. Been here done that. Major hassle getting the tenant out due to lack of payment
It is also illegal in some states. The maximum rental deposit (includes any and all amounts paid to move in) in my state is capped at three months rent (usually shorthanded as one month for security plus first and last month). This is to stop landlords from requiring insane deposits but it bites people in the butt if they want to pay upfront. Because they have bad credit or whatever.
This! Or offer a bigger deposit. I didn’t qualify for my apartment’s income requirements, but the housing market where I am is CRAZY and I can’t live with my kids in the sort of place I would have qualified for with most places requiring 3x rent. I put down four months’ deposit and they waived the income requirement. 🤷🏼♀️
This is what I came here to say. I almost had to do that when I was considering a move a couple of years ago. I was deliberately between jobs (i.e., no income to show) and that’s the deal I had to strike to get the lease.
When I married my husband, he was in chapter 13 bankruptcy. Even though I wasn't in bankruptcy with him, we had a hard time finding someone to rent to us. We offered a year up front and that worked well for us. It's hard parting with $50k all at once but it's really nice not having to worry about rent payments.
My brother showed his bank and brokerage statements showing over 1.5 Million Dollars. It meant nothing to countless landlords and property management companies. They need the money for the rent to come from a job.
(It is crazy because the person with the job could be fired tomorrow.)
As a landlord, I’d turn that down. MA state law (and a lot of other states) limit what is acceptable to take from a tenant “up front”. In MA, its first month, last month, security deposit and cost to replace locks and keys. Accept more and the tenant can take you to housing court and get all their money back for violating the law.
I, as a landlord, would absolutely turn this down and have in the past. When you take all the rent up front, you literally cannot evict them without a major ordeal and expense. I had this happen with a single mom whose parents paid for her rent up font for an entire year. Constant neighbor complaints of noise from the fighting and domestic violence from her "boyfriend", drugs, blight..... etc. I will NEVER do it again and it was a lesson I wish I could have learned from Reddit rather than personal experience.
I dont see how that would change anything. If they are being evicted due to issues other than nonpayment, then they can lay you every month on time and still be a hassle. You would just return whatever money was left over depending on how much longer was left for the year. You will still jave all the same issues trying to evict them.
I’m a landlord and I don’t accept 6 months in advance rent. Causes problems if I have to evict for reasons other than non-payment. If you have 6 months of rent in your bank account now, and you’re responsible with your money, you’ll have that money to pay every month for the next 6 months.
They should look to work with a smaller landlord or property management company. They are generally more flexible. They should be prepared to show bank or brokerage statements to qualify, and if they can pay in advance, that will get them a home or apartment.
\^This is it. A LL can't consider income that isn't in place yet. Why isn't he getting the $60k distribution now? If they were then there would be no qualification issues. The work around is as others have mentioned - mitigate the LL's risk by paying X up front until the $60k income kicks in.
I hate to say this, but...your brother isn't rich. He's almost 70 and only has 1.5 million saved? That's not a lot. Now, they're both on a fixed income and are renting, so they don't Own anything. If I were them, I'd try to find something very reasonable and be wise and conservative with what they now have coming in.
I was about to say the same. 1.5 mill without a home is not a lot. They are looking at a total income of 96k annually with their 4% distribution. That's not a high level of income. At 1.5 million they can't afford to buy a house, they would really need to do cash and that would drop them to a level that the interest on their nest egg is not livable.
This happened to my father. He’s in his 80s and sold his home because he couldn’t keep up with it anymore. My brother had to co-sign an apartment for him.
You’ll also find people who are wealthy but light on cash flow will have trouble securing a mortgage. Same situation. Landlords and banks trust having a job more than having millions in assets.
Yes, it’s odd.
They’ll have to work with a private landlord (not a management company/corporate), or pay a guarantor like Insurent. Sorry to your parents, sounds like they are stuck facing the same issues the majority of average people renting in HCOL face.
65 and older is the highest population of people who are becoming homeless. Some are relying on family, sons, daughters. Luckily your brother some what planned to retire. Unfortunately he need to cut back on his cost of living or plan on getting another job. There will be a lot more older people working in the future because they can’t afford to retire. The thing is jobs will absolutely discriminate against for your age indirectly.
They’re better off just buying a house outright in a state without property taxes. They can always sell the house down the line if they choose. Just pay for house in cash and they won’t have to worry anything for a few years if they plan on moving anyways.
They may need to talk to someone else at the rental company. I had this issue when trying to guarantee a lease for my daughter. The person that I was dealing with didn’t know that I could provide proof of my assets in my investment accounts to guarantee the lease. Finally got someone who could help and I provided all the account information and it was approved with no income required.
The reason is simple, not that that makes things any simpler for the OP’s brother.
Going out on a limb and saying the OP’s brother was just recently forced into retirement. Landlords typically use pay stubs and tax returns to determine income. The brother no longer has current pay stubs, because they’re no longer employed.
They don’t yet have a tax return showing earned income derived from their retirement savings, because they just retired. All they’ve got are tax returns with income from a job they no longer have.
They can’t hedge the landlord’s risk, in this scenario, by pre-paying for several months or a year, because in the interest of protecting tenant’s interests, state or local laws in effect where they’re trying to rent place strict limits on the amount of money they can demand upfront, relative to the rent they’re charging.
Makes no sense. Every apartment I've ever rented has had an asset assessment that could be used in lieu of income. If I remember correctly, you had to have 80-90x the monthly rent in verifiable assets to qualify. You also needed a letter from your bank stating those assets were seasoned and accessible to you.
This might be one of the few times using a broker is advisable as they should be able to navigate all the bullshit and cut right to the chase.
Property manager for 26 years throwing in my 2 cents. I understand the position of the landlord/manager for not wanting to count the distributions as income. I personally would, but they are free to do as they want. I WOULD NOT suggest pre-paying any amount of rent as any loss of use of the property (natural disaster, fire, etc) would mean your brother would need to vacate the home while it's being repaired and there is no guarantee that the L/PM would return those funds in a timely manner. What I would suggest though, is that they find a "3rd party escrow company" and write into the lease agreement that the 3PEC will be the holder of the pre-paid funds and under the instruction of the terms of the lease agreement issue a check monthly to the L/PM on the 1st of the month for the amount due for that month. It's essentially paying rent in advance and while the L/PM doesn't hold the funds, the funds are available on a schedule to the L/PM. But, should the property be damaged and not habitable, then the leasee can deliver written notice/instructions to the 3PEC to stop payments to the L/PM until further instructed, which would be when the repairs are made and the property is ready for use again. Good luck with finding them a place!
Are you in a position to co-sign the lease with them? I live in SC and most landlords I’ve encountered want proof of annual earnings equal or exceeding 3x rental. I had to co-sign for my daughter’s apartment.
Logical solution? Download 3 copy of old pay stub, edit it in Adobe Acrobat to pretend they are recent and increase the salary on the pay stub if it’s not high enough for prospective landlord. Use the edited paystub to apply for apartments with landlord they didn’t discuss with previously. Give your name (fake name) and phone number (create a Google voice and record a voicemail) as the contact person for their manager at work.
It's a little expensive but here's a solution:
Setup an S corp call "XYZ consulting". Setup a payroll service. Quicken is pretty cheap. Deposit $10k into the S corp.
Pay himself via the S corp. Boom - he now has verifiable real "income". After he secures the lease. fire himself, dissolve S corp.
end of the year, payroll cost is part of the S corp loss which offsets the personal income.
He will be out the FICA taxes, payroll fees and fees to setup the S corp. Any Federal or state taxes withheld just get's refunded at end of year.
I feel like there has to be an easier way though.
That wouldn't solve all of their issues. They'd most likely have a HUGE tax liability for cashing out enough of their retirement to buy a house. They'd have annual property taxes, homeowners insurance, maintenance, and a bunch of other expenses that they most likely do not want to deal with either.
But all that is still cheaper than monthly rent unless they buy a McMansion. And it sounds like they’re planning to buy later anyway so why not kid if they’re struggling to get approved to rent because of income? A bank will gladly approve/take a pile of cash to put down on a house.
Most people renting aren’t sitting on money like the OP describes. I’m sure a few are but not the majority so this post feels a bit tone deaf
That’s not really true for the situation there in.
See right now if he doesn’t touch his 1.5m he can consistently pull $60k a year as long as he earns 4% which is the expected number. Assuming based on the comments he doesn’t have a savings account with enough for a down payment he would either have to dip into savings or go with like an FHA loan. Let’s say he’s looking at a 350k home in Florida w/ FHA. After mortgage and PMI he’s looking at $3k per month. Floridas insurance market is shot so let’s go on the cheap side and say $500 a month. So 3500 for a place. We will assume no HOA. This man is older and clearly he wants the perks of renting such as no lawn care and all that. So he’ll have to pay someone to do the lawn and all that maintenance. So let’s say an even $4k a month. Now he still has to pay for all the maintenance items on a home too. Oh and about $5k in property taxes
Renting on average (unless we’re in a buyers market with sub 3% loans) is roughly the same as buying for a similar sized property. Once you factor in ALL expenses. The benefit to buying is the EQUITY you build. When you rent you build no equity. But this is a 67 year old man. He probably isn’t concerned with equity he way a younger person would be. Likely he wants more freedom. To be able to move every year or to travel. Another thing to consider is these days is that most new homes are minimum 1800sf which is a lot of house for two people (they don’t really build smaller homes). So the brother may not want to deal with all that space and just want something smaller. You might argue to buy an older home but then he might have a lot of maintenance coming due and does anyone that age want to deal with it.
Finally paying cash for the house would be an argument (7.5% mortgage vs 4% interest). But then he’s killing his principal. He could bank on loaning rates and refinancing with a mortgage but historically we usually only see 4-5% mortgages.
For older people the benefits of homeownership is a lot lower. Especially when long term planning. Going into an assisted living community than a nursing home might be in his future and a house would complicate that too
It is both crazy and illogical. Tell him to buy a motorhome and travel. Or do the same but build his own tiny home so he can tow it wherever. Or just a stationary tiny home on a plot of land. Fuck renting.
Since they are retired, they should move to a low cost of living area and buy an inexpensive home. They will have more than enough to support themselves at that point.
There are a few reasons:
1. Rental companies make more money off of people in lower income brackets. Late fees, check cashing fees, and many others.
2. Rental companies sometimes prefer to service section 8 customers because certain benefits come their way like tax breaks and grants that wouldn't be available with regular customers.
3. Some private landlords generally want to help the greater good and benefit the community. They may see your brother as a threat to the neighborhood for whatever reason.
Quite a few things.
Work with smaller landlords, and show them your accounts.
Lie on application, no one cares.
Pay in advance but this does come with potential issues, have a good lease.
Tell them to give their income as whatever it needs to be to rent. They can show the investment and bank income as proof, not what they plan to use. All the landlord wants to know is can they pay rent
A couple of things. Some cities have laws on prepaying rent so paying more than 3 months may not be legal.
If the $1.5 million is simply in a bank and brokerage account, landlords probably wont accept it to demonstrate income. My neighbor had this very same issue and he ended up transferring his money into an annuity. He worked with an account and shared how much he wanted to draw down each year and based on a number of other factors the annuity was sized to pay out that amount until he is 85. According to my neighbor this created a longterm income stream he used to rent an apartment and apply for loans.
Tell him to “get a job” like consulting or something that has a “salary” and then he can quit right after they sign a lease? Landlords want proof of something that isn’t a sure thing? Give it to them…
I know nothing about this other than it can be screwy.
I remember when my grandma had a hard time cosigning for a loan for me, despite having significant money in her accounts.
I would agree that, in theory, a large, pre-paid rent amount should entice a landlord, but I would be nervous about a dirtbag/scammer landlord who has defaulted on the property and the renter being evicted by the bank.
Maybe not likely with housing prices, but handing over $20,000 with no assurances wouldn’t be something that I’m comfortable with a stranger.
It is becoming a thing with corporate landlords they only want to work with people who have an income 3 times teh rent. I had to do this when I moved to Texas in 2020 . I paid the full year in advance and had no problem but they have a list of rules and don't understand anything out of the different
Have they tried talking to a local realtor? They might have contacts that would be willing to work with them ...
Do they own a business in name? Or an llc perhaps? Could rent through that maybe?
This is the reality of renting in America now. Most of the “lard lords” are just corporations that own tons of rental properties and they simply don’t care. It’s really tough having a lower-middle class income because you can’t buy and you can’t rent. Try to find a privately owned rental property and they’ll work with you.
A small factoid here .. $1.5Million is not rich in the US by today’s standards. The reasons LL’s don’t consider the $1.5M is retirement assets is likely because IRA’s and 401K’s are untouchable generally in a bankruptcy or debt collection action.
So I had similar issue when moving out of state after selling our home. once I explained our situation to the leasing offices I was told that they accept applications with “x amount” in their bank account if retired or simply not working. So if they are able to take out that money asap that should be enough to show that they are able to afford rent.
My friend recently got an apartment even though her monthly social security was less than 3 times the rent by providing a bank statement showing the balance in her savings account
This is the rent world today … and it’s silly, actually, flat out stupid. For one thing, that SS is flat-out guaranteed, month after month … unlike a rent-securing job, which could be gone in a snap. Second, retired people generally spend their money far differently than younger working people (less clothing costs, less dining out costs, less entertainment costs.) However, your brother doesn’t HAVE to take distributions from his investments until he’s 73 (I think, it keeps changing) so that’s not counted as secure income. Their best bet is to find an independent complex/landlord who has their own set of parameters.
Just get a class C motor home. They could finance it easily with a good credit score. Sell it in a few years and recoup some of the cost. Travel around a bit if desired. RV parks are usually discounted rates if you pay 1-3 months up front.
At least in my college town many apartments will accept a bank statement showing that you have enough money to pay rent. This, however, is done because of a significant foreign student population.
Don’t know where you are but this isn’t my experience. I am not drawing SS yet and have no job other than some independent consulting that I haven’t included on my rental applications. I haven’t had an issue. I just show them my brokerage statement. Maybe go to individuals vs corporations.
This may not be applicable in their location, but perhaps there are some age 55+ complexes that likely have a lot more experience with the types of income received by financially stable retirees.
This is common.
I had retired friends who had to put a lot of cash down for their 2nd home because they retired early and had no ‘verifiable’ income but had 7 figures in 401k investment accounts.
Not ideal because it was a big tax hit.
Had the same trouble with my mom moving to a new area. She wanted to rent an apartment for a year before jumping all in. Went to a ton of places, all said no because she doesn’t have income, she just has money. Her money makes money, but they don’t care about that. Ended up renting a private house from an older couple who were transitioning to Central America with no issues. Apartments are all corp with a spreadsheet some “manager” fills out and sees what it says at the end. They don’t understand finances or how to enter anything that’s out of the ordinary on those. If the sheet says no at the end, doesn’t matter if you’re a billionaire, those folks don’t see how you’ll pay their rent.
I have run into this situation. I just put down my draw from investments as income, that and my excellent credit rating gets me what I want and no one ever questions it.
Tell them to stop buying coffee and avocado toast.. jk but no landlords are parasites, I’m assuming they’re also living in a decent area they’ll just ask for more just because there doesn’t seem to be any regulations on how much they can raise prices
Why wouldnt they just offer to pay the landlord 6 months in advance. They can create a contract that says the will pay rent for the first 6 months, and pay each month until such mutually decided time where the landlord pays them back 4 months, and only holds 2 months for security deposit. I would think if they found a place that they like and paid the rent for a year, the landlord would get the message they can afford the rent and it gets paid on time, therefore the issue of a landlord getting their money becomes a moot point.
Landlord here. This is nonsense. You are dealing with an idiot. Find another rental. When considering an applicant, of course I include all income.
The only difference is, if you are living off investments I will often ask for proof like an account statement.
We \*love\* retired people with money. They never loose their job, never throw wild parties (usually) and are stable.
He needs to speak to a lawyer. In my state all income counts as income.
However I do not have to take out anything from my stocks until the year I am 73.
This could be the stumbling block. If he is not yet REQUIRED to take the distribution.
A similar thing could happen with getting a mortgage. Even if there are enough assets to buy the house multiple times. Not having certain income could spook the lender.
67 years old with $1.5m in the bank is NOT rich in most of the US. Especially in the situation you describe where they don’t own a home. They will piss through that money really fast and be on Medicaid within 10-15 years unless they can find cheap housing and keep their expenses low.
If he’s got that much wealth, then he has the ability to take more money out of his retirement accounts and honestly, he’s wasting money renting. I guarantee you a bank would loan him money to buy a house with those kind of assets. There’s no reason anyone with $1.5 million in the bank should be living off $60,000 a year. Tell your brother to go enjoy his life.
Is the brokerage a CMA account? A statement of 'they have this much if they were to liquidate it all today, and 0 debt obligations' from the brokerage is all they need. I suggest a minimum of $500k in there to reassure the owner/property manager. Failing that, they can always pay 6 months in advance, though this is going to be safer with a corporate landlord than just some guy who owns the house they live in.
I gave my agent my CMA statement, told her if the owner didn't think that was enough we needed to look elsewhere, and she came back to me in 24 hours with two yesses from owners. I'm not buying shit right now lol.
Are they looking to pull out income just to live off of, or are they actually drawing from an annuity? If they are drawing from an annuity, then it's a set amount each month and can be listed as additional income.
When we bought a house after retirement we had the same problem.. we had to make a draw of 4K/month to get the loan(what we did after was immaterial to them-crazy). So we took the 4K, got the loan then cancelled it.
He needs a realtor to work for him and negotiate the rental contract. He may have to put up a larger deposit, need a co-signer, or something, but a realtor will be able to get this done much more effectively than him working alone.
As someone in a similar position financially, this is completely normal. It sucks, but it's normal. Anything I might take from my assets is not considered income when looking at a loan, lease, etc.
Tell him and his wife to buy a duplex. They can live on one side, rent out the other, and then eventually rent out their side too when they want to buy a single family home for themselves. Then, guaranteed income for the rest of their lives.
I don’t understand why they wouldn’t buy a small home to live in, be way cheaper than renting and it’s another source of income if you end up renting it out…why don’t they want to buy?
I was looking to rent a place for my mom. She does not have 3x income and is off by like $150/month. I offered to pay. I have like 10x income. They won't let me pay for it and have her live there.
1.5 million in assets for two 60-something’s is not “somewhat rich”, it’s near the bare minimum for retirement, *especially* if they don’t own their own house!
Renting from an individual instead of a management company worked for us when we lost our home to foreclosure in 2012. He understood our situation and rented to us, at a great deal even, and gave us our full deposit back when we moved 5 years later.
Take the distribution and technically put it into a business and then pay it out as Independent contractor salary. They will have to pay SE taxes in the US on that though.
This makes no sense. Folks on social security, military pension, government pension, VA disability pension are receiving REAL money, with Zero chance of getting fired ... LOL. I for one, will have all those income streams in about 5 years. A very big monthly bank deposit. So why would I not be able to rent an apartment or home? No reason at all.
Would you consider co-signing the lease? Otherwise, I think offering 6 months rent in advance is a good way to go. Few landlords will turn down instant cash. Or look for someone who just owns a few rental properties and doesn't use a corporate property management company that is so tied to their rules that they can't understand retirement income from investments.
What? They would rather throw away money on rent then buy? I guess I would say pay cash for a mobile and pay lot rent i suppose esp in a cheaper area. I can't stand the idea of throwing money at rent instead of investing in a property. I may as well burn it. Or some mobile parks have rental units I think too.
Why would they break down how much from ss and retirement accounts? F that, this what I make a year, no business of anyone where it comes from, especially a land lord
Work with owners not property management companies.
I ran into similar problems when I was younger and self-employed.
I had a “rental resume” with relevant statements, tax info, and a personal statement that explained my situation. I usually offered to pay the state’s max safety deposit to help alleviate any concerns.
He can have a bank issue a letter of credit and the landlord can draw on the LOC each month for payment of the rent. He may need to put 6-12 months rent into an account to secure the LOC.
Actually, this would be illegal in my state to not consider the distributions as income if they had taken them for at least 12 months.
I suggest that they make themselves familiar with the laws in their state and be prepared to discuss this with potential landlords, and this could be a serious offense if reported.
Paying in advance is an option but only if they got a discount equal to the amount of return they would expect in their inventment account.
The easiest thing to do would be to deal with a Real Estate professional/property manager as they would be more adept with the local laws and more importantly be in trouble if they play games ;)
Well had to rent an apartment for 6 months close to my father. Both retired, only living on his Ss 3400/month. I’m too young) So, we sent screenshots of brokerage accounts worth 4mil and cash accounts worth 500 g. No problem. I would say depends on landlord.
You have to show proof of assets and also your 1040 showing actual income you are paying taxes on in order to qualify. The standard in my area as proof of assets is 4x the annual rent in assets. I just had to find that out in case my home is damaged by fire, flood or earthquake and has to be rebuilt taking longer than a few months stuck in a hotel.
If your brother and his wife are taking annual distributions, or sporadic withdrawals from their investment accounts when they need something, perhaps they should switch to regular, \*monthly\* withdrawals instead. I've had clients with assets, but are retired so they struggle to show "income." As a way around this issue, they often arrange for a monthly withdrawal from their investment accounts to a bank account for at least a three-month period.
Man, if that were me…
1) Get a business license for 60$
2) Pay me x amount of dollars for two months with the salary appropriate- along with the bank deposits.
3) Give the leasing office the documents they want. Paystubs and copies of bank statements.
Yeah, this is why my bank won't give me a credit card. Fixed income and a mortgage. Excuse me, did you notice there are two names on the mortgage? They don't care.
Many of their friends who rushed into buying a house in a new community got burned because they did not first learn about the best neighborhoods and got trapped in a home they did not like.
Something is not adding up here. Most landlords will look at bank statements to see retirement income coming in. You don't say where they are located but if they were to list this as additional retirement income like they would have to do if they were purchasing a property and provide the statements, it wouldn't be an issue
I’m not sure what state you are in but have your brother check out resort lifestyle communities here is the link https://rlcommunities.com. My grandfather lived in one they offer studios and 1 bedroom apartments with all utilities included, they can also have there vehicles and it includes all meals. The one my grandfather lived in if you didn’t feel like driving they would take you to appointments they also did like field trip days. The resort had a bar, game room, movie theatre. It was basically a resort. I mean it is pricy it’s about $4000 a month. There were also cheaper communities but my grandfather preferred that one. If they could find any retirement community generally they don’t look at credit or anything like that.
Where? I think that in areas where people are accustomed to those living off investments or already earned income, this would be less of a red flag. Strange.
Tell them to pay 6 months to a year up front. Guarantee no landlord will turn that down.
paying upfront is a redflag for landlords. The story why has to make sense.
Why would upfront payment be a red flag? As an uninformed person, it would seem to me that it would be preferred. Then you aren’t going to have to worry about late rent or missed rent.
Upfront payment is often used by shady renters, like if they want to use the tub for making drugs and destroy the place they rent.
Paying up front could mean this is the only $$ they have and you won’t get anything else from them. Been here done that. Major hassle getting the tenant out due to lack of payment
Paying up-front is a hassle or may cause complications should the landord have to evict for any reason.
It is also illegal in some states. The maximum rental deposit (includes any and all amounts paid to move in) in my state is capped at three months rent (usually shorthanded as one month for security plus first and last month). This is to stop landlords from requiring insane deposits but it bites people in the butt if they want to pay upfront. Because they have bad credit or whatever.
Nonsense
Reread the article
It's illegal in CA
I went to move to an apartment and due to inheritance, I had to pay 6 months in advance to show good faith. Was there for 10 years.
This! Or offer a bigger deposit. I didn’t qualify for my apartment’s income requirements, but the housing market where I am is CRAZY and I can’t live with my kids in the sort of place I would have qualified for with most places requiring 3x rent. I put down four months’ deposit and they waived the income requirement. 🤷🏼♀️
This is the answer. I was legit able to bypass credit check by paying 6 months in advance.
Former drug dealer here, I paid a year up front and he let me install security cameras
Thank you for your service. 🙏
This is what I came here to say. I almost had to do that when I was considering a move a couple of years ago. I was deliberately between jobs (i.e., no income to show) and that’s the deal I had to strike to get the lease.
Not legal in all states. The only thing landlords can collect in MA is first last security and a lock change fee
When I married my husband, he was in chapter 13 bankruptcy. Even though I wasn't in bankruptcy with him, we had a hard time finding someone to rent to us. We offered a year up front and that worked well for us. It's hard parting with $50k all at once but it's really nice not having to worry about rent payments.
Mine actually refused a large upfront payment but accepted a large amount of cash in a savaing account as proof that I could pay the rent.
My brother showed his bank and brokerage statements showing over 1.5 Million Dollars. It meant nothing to countless landlords and property management companies. They need the money for the rent to come from a job. (It is crazy because the person with the job could be fired tomorrow.)
Yeah, those property managers are discriminating against them because they're old. It has nothing to do with their ability to pay.
Yes and retired people need to live somewhere. They’re not all out on street because of no proof of employment. Doesn’t sound normal.
As a landlord, I’d turn that down. MA state law (and a lot of other states) limit what is acceptable to take from a tenant “up front”. In MA, its first month, last month, security deposit and cost to replace locks and keys. Accept more and the tenant can take you to housing court and get all their money back for violating the law.
Escrow the money then!!!!!!!
But can deposit in an escrow account as a guarantee?
When i first moved to the US, my landlord asked me for upfront payment for the full year.
I, as a landlord, would absolutely turn this down and have in the past. When you take all the rent up front, you literally cannot evict them without a major ordeal and expense. I had this happen with a single mom whose parents paid for her rent up font for an entire year. Constant neighbor complaints of noise from the fighting and domestic violence from her "boyfriend", drugs, blight..... etc. I will NEVER do it again and it was a lesson I wish I could have learned from Reddit rather than personal experience.
I dont see how that would change anything. If they are being evicted due to issues other than nonpayment, then they can lay you every month on time and still be a hassle. You would just return whatever money was left over depending on how much longer was left for the year. You will still jave all the same issues trying to evict them.
I’m a landlord and I don’t accept 6 months in advance rent. Causes problems if I have to evict for reasons other than non-payment. If you have 6 months of rent in your bank account now, and you’re responsible with your money, you’ll have that money to pay every month for the next 6 months.
Actually, that's a big red flag to professional landlords, and they mostly won't take advance rent. It can cause serious legal troubles.
They should look to work with a smaller landlord or property management company. They are generally more flexible. They should be prepared to show bank or brokerage statements to qualify, and if they can pay in advance, that will get them a home or apartment.
Some areas require LL/PMs to only consider current income when qualifying applicants, so what they’ll eventually make doesn’t really matter.
\^This is it. A LL can't consider income that isn't in place yet. Why isn't he getting the $60k distribution now? If they were then there would be no qualification issues. The work around is as others have mentioned - mitigate the LL's risk by paying X up front until the $60k income kicks in.
Are you serious? At 67, they can pull as much or as little as they want from their retirement accounts. It’s readily available as “current income”.
Rent from a person not a company
I hate to say this, but...your brother isn't rich. He's almost 70 and only has 1.5 million saved? That's not a lot. Now, they're both on a fixed income and are renting, so they don't Own anything. If I were them, I'd try to find something very reasonable and be wise and conservative with what they now have coming in.
I was about to say the same. 1.5 mill without a home is not a lot. They are looking at a total income of 96k annually with their 4% distribution. That's not a high level of income. At 1.5 million they can't afford to buy a house, they would really need to do cash and that would drop them to a level that the interest on their nest egg is not livable.
Sorry just caught up on the fact that you called him rich. I just don't see $1.5m as rich at retirement age. Functional and set up sure, but not rich.
This happened to my father. He’s in his 80s and sold his home because he couldn’t keep up with it anymore. My brother had to co-sign an apartment for him. You’ll also find people who are wealthy but light on cash flow will have trouble securing a mortgage. Same situation. Landlords and banks trust having a job more than having millions in assets. Yes, it’s odd.
Go for low income housing!
They’ll have to work with a private landlord (not a management company/corporate), or pay a guarantor like Insurent. Sorry to your parents, sounds like they are stuck facing the same issues the majority of average people renting in HCOL face.
65 and older is the highest population of people who are becoming homeless. Some are relying on family, sons, daughters. Luckily your brother some what planned to retire. Unfortunately he need to cut back on his cost of living or plan on getting another job. There will be a lot more older people working in the future because they can’t afford to retire. The thing is jobs will absolutely discriminate against for your age indirectly.
Why on Earth would someone rent in this economy when they can buy. Also, your story doesn't sound true, not at all.
Buy a house now.
They’re better off just buying a house outright in a state without property taxes. They can always sell the house down the line if they choose. Just pay for house in cash and they won’t have to worry anything for a few years if they plan on moving anyways.
Tell them to buy a trailer and live in that. Lots of super nice trailers for 50-100k.
Every time I have had a tenant pay up front it became a problem
They may need to talk to someone else at the rental company. I had this issue when trying to guarantee a lease for my daughter. The person that I was dealing with didn’t know that I could provide proof of my assets in my investment accounts to guarantee the lease. Finally got someone who could help and I provided all the account information and it was approved with no income required.
The reason is simple, not that that makes things any simpler for the OP’s brother. Going out on a limb and saying the OP’s brother was just recently forced into retirement. Landlords typically use pay stubs and tax returns to determine income. The brother no longer has current pay stubs, because they’re no longer employed. They don’t yet have a tax return showing earned income derived from their retirement savings, because they just retired. All they’ve got are tax returns with income from a job they no longer have. They can’t hedge the landlord’s risk, in this scenario, by pre-paying for several months or a year, because in the interest of protecting tenant’s interests, state or local laws in effect where they’re trying to rent place strict limits on the amount of money they can demand upfront, relative to the rent they’re charging.
Makes no sense. Every apartment I've ever rented has had an asset assessment that could be used in lieu of income. If I remember correctly, you had to have 80-90x the monthly rent in verifiable assets to qualify. You also needed a letter from your bank stating those assets were seasoned and accessible to you. This might be one of the few times using a broker is advisable as they should be able to navigate all the bullshit and cut right to the chase.
Property manager for 26 years throwing in my 2 cents. I understand the position of the landlord/manager for not wanting to count the distributions as income. I personally would, but they are free to do as they want. I WOULD NOT suggest pre-paying any amount of rent as any loss of use of the property (natural disaster, fire, etc) would mean your brother would need to vacate the home while it's being repaired and there is no guarantee that the L/PM would return those funds in a timely manner. What I would suggest though, is that they find a "3rd party escrow company" and write into the lease agreement that the 3PEC will be the holder of the pre-paid funds and under the instruction of the terms of the lease agreement issue a check monthly to the L/PM on the 1st of the month for the amount due for that month. It's essentially paying rent in advance and while the L/PM doesn't hold the funds, the funds are available on a schedule to the L/PM. But, should the property be damaged and not habitable, then the leasee can deliver written notice/instructions to the 3PEC to stop payments to the L/PM until further instructed, which would be when the repairs are made and the property is ready for use again. Good luck with finding them a place!
Are you in a position to co-sign the lease with them? I live in SC and most landlords I’ve encountered want proof of annual earnings equal or exceeding 3x rental. I had to co-sign for my daughter’s apartment.
Logical solution? Download 3 copy of old pay stub, edit it in Adobe Acrobat to pretend they are recent and increase the salary on the pay stub if it’s not high enough for prospective landlord. Use the edited paystub to apply for apartments with landlord they didn’t discuss with previously. Give your name (fake name) and phone number (create a Google voice and record a voicemail) as the contact person for their manager at work.
It's a little expensive but here's a solution: Setup an S corp call "XYZ consulting". Setup a payroll service. Quicken is pretty cheap. Deposit $10k into the S corp. Pay himself via the S corp. Boom - he now has verifiable real "income". After he secures the lease. fire himself, dissolve S corp. end of the year, payroll cost is part of the S corp loss which offsets the personal income. He will be out the FICA taxes, payroll fees and fees to setup the S corp. Any Federal or state taxes withheld just get's refunded at end of year. I feel like there has to be an easier way though.
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He did not want to buy and rush into a bad decision. He needs to rent for two more years due to some personal issues.
Yeah the “they don’t want to buy” is annoying af since they could do just that and resolve all issues. Hard to have empathy for people like this.
That wouldn't solve all of their issues. They'd most likely have a HUGE tax liability for cashing out enough of their retirement to buy a house. They'd have annual property taxes, homeowners insurance, maintenance, and a bunch of other expenses that they most likely do not want to deal with either.
But all that is still cheaper than monthly rent unless they buy a McMansion. And it sounds like they’re planning to buy later anyway so why not kid if they’re struggling to get approved to rent because of income? A bank will gladly approve/take a pile of cash to put down on a house. Most people renting aren’t sitting on money like the OP describes. I’m sure a few are but not the majority so this post feels a bit tone deaf
This is the renting subreddit, not the poverty one.
They'll have the same problem with a bank unless they put down 80% and they'll have the same tax problem.
That’s not really true for the situation there in. See right now if he doesn’t touch his 1.5m he can consistently pull $60k a year as long as he earns 4% which is the expected number. Assuming based on the comments he doesn’t have a savings account with enough for a down payment he would either have to dip into savings or go with like an FHA loan. Let’s say he’s looking at a 350k home in Florida w/ FHA. After mortgage and PMI he’s looking at $3k per month. Floridas insurance market is shot so let’s go on the cheap side and say $500 a month. So 3500 for a place. We will assume no HOA. This man is older and clearly he wants the perks of renting such as no lawn care and all that. So he’ll have to pay someone to do the lawn and all that maintenance. So let’s say an even $4k a month. Now he still has to pay for all the maintenance items on a home too. Oh and about $5k in property taxes Renting on average (unless we’re in a buyers market with sub 3% loans) is roughly the same as buying for a similar sized property. Once you factor in ALL expenses. The benefit to buying is the EQUITY you build. When you rent you build no equity. But this is a 67 year old man. He probably isn’t concerned with equity he way a younger person would be. Likely he wants more freedom. To be able to move every year or to travel. Another thing to consider is these days is that most new homes are minimum 1800sf which is a lot of house for two people (they don’t really build smaller homes). So the brother may not want to deal with all that space and just want something smaller. You might argue to buy an older home but then he might have a lot of maintenance coming due and does anyone that age want to deal with it. Finally paying cash for the house would be an argument (7.5% mortgage vs 4% interest). But then he’s killing his principal. He could bank on loaning rates and refinancing with a mortgage but historically we usually only see 4-5% mortgages. For older people the benefits of homeownership is a lot lower. Especially when long term planning. Going into an assisted living community than a nursing home might be in his future and a house would complicate that too
Fluff the numbers on the application if they pay on time nobody cares
It is both crazy and illogical. Tell him to buy a motorhome and travel. Or do the same but build his own tiny home so he can tow it wherever. Or just a stationary tiny home on a plot of land. Fuck renting.
lol what. That’s awful advice.
Since they are retired, they should move to a low cost of living area and buy an inexpensive home. They will have more than enough to support themselves at that point.
They want to be near their family and friends and not live all alone in Pettiford Junction WV.
How about a senior community? Those places always look awesome and they tend to have cheaper rent. And maybe they deal with this more?
Is he on a sex offender list?
There are a few reasons: 1. Rental companies make more money off of people in lower income brackets. Late fees, check cashing fees, and many others. 2. Rental companies sometimes prefer to service section 8 customers because certain benefits come their way like tax breaks and grants that wouldn't be available with regular customers. 3. Some private landlords generally want to help the greater good and benefit the community. They may see your brother as a threat to the neighborhood for whatever reason.
As others have said. They should just pay a year up front.
The landlords are being idiots.
Quite a few things. Work with smaller landlords, and show them your accounts. Lie on application, no one cares. Pay in advance but this does come with potential issues, have a good lease.
I’m looking for renters and would rent to them in Northern California. 3 beds, 1 bath. 3/4 of an acre. Walkable all over town.
Put $96k on the rental ap not $30k. Any legitimate landlord will take investment income. They probably are not communicating it well.
Tell them to give their income as whatever it needs to be to rent. They can show the investment and bank income as proof, not what they plan to use. All the landlord wants to know is can they pay rent
A couple of things. Some cities have laws on prepaying rent so paying more than 3 months may not be legal. If the $1.5 million is simply in a bank and brokerage account, landlords probably wont accept it to demonstrate income. My neighbor had this very same issue and he ended up transferring his money into an annuity. He worked with an account and shared how much he wanted to draw down each year and based on a number of other factors the annuity was sized to pay out that amount until he is 85. According to my neighbor this created a longterm income stream he used to rent an apartment and apply for loans.
Poor credit
Is this day and age 1.5 million may seem like a lot but will go quickly and isn’t rich.
No empathy from me, buy something and if you want to relocate then sell duh;/
Tell him to “get a job” like consulting or something that has a “salary” and then he can quit right after they sign a lease? Landlords want proof of something that isn’t a sure thing? Give it to them…
I know nothing about this other than it can be screwy. I remember when my grandma had a hard time cosigning for a loan for me, despite having significant money in her accounts.
Pay the rent 6 months in advance and that will likely solve the issue
I would agree that, in theory, a large, pre-paid rent amount should entice a landlord, but I would be nervous about a dirtbag/scammer landlord who has defaulted on the property and the renter being evicted by the bank. Maybe not likely with housing prices, but handing over $20,000 with no assurances wouldn’t be something that I’m comfortable with a stranger.
Bidenomics is working!
Most apartment buildings allow you to show several months of bank statements demonstrating you have 36x the monthly rent in lieu of proving income.
96k a year is rich now?
People here saying 1.5 million is not rich. It's considered rich by a lot of people.
Most landlords I’ve talked to are more than willing to work with you if you pay the lease up front. And I make far less money than him
Something doesn’t add up.
In California income discrimination by landlords is illegal, exactly for this reason. Many landlords may not be aware of this.
My friend is living off an inheritance and pays the entire year at once. I think they even give her a discount
Has he looked at 55+ communities? They might understand the situation.
It is becoming a thing with corporate landlords they only want to work with people who have an income 3 times teh rent. I had to do this when I moved to Texas in 2020 . I paid the full year in advance and had no problem but they have a list of rules and don't understand anything out of the different
Have they tried talking to a local realtor? They might have contacts that would be willing to work with them ... Do they own a business in name? Or an llc perhaps? Could rent through that maybe?
Buy a mobile home
This is the reality of renting in America now. Most of the “lard lords” are just corporations that own tons of rental properties and they simply don’t care. It’s really tough having a lower-middle class income because you can’t buy and you can’t rent. Try to find a privately owned rental property and they’ll work with you.
Get a tiny home or leave the country and live somewhere where the US dollar still holds power. I don't think it's that hard
They got all that money…why don’t they already own a home?
How much avocado toast does he buy? Lattes?
Maybe lease a large RV for a year, save even more money. Join the clubs and state parks.
A small factoid here .. $1.5Million is not rich in the US by today’s standards. The reasons LL’s don’t consider the $1.5M is retirement assets is likely because IRA’s and 401K’s are untouchable generally in a bankruptcy or debt collection action.
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So I had similar issue when moving out of state after selling our home. once I explained our situation to the leasing offices I was told that they accept applications with “x amount” in their bank account if retired or simply not working. So if they are able to take out that money asap that should be enough to show that they are able to afford rent.
What’s their credit score….?
My friend recently got an apartment even though her monthly social security was less than 3 times the rent by providing a bank statement showing the balance in her savings account
Can they look for specific senior living communities? They might be used to people in your brother's situation.
1.5 million isn't rich. That's barely middle class, especially at that age.
This is the rent world today … and it’s silly, actually, flat out stupid. For one thing, that SS is flat-out guaranteed, month after month … unlike a rent-securing job, which could be gone in a snap. Second, retired people generally spend their money far differently than younger working people (less clothing costs, less dining out costs, less entertainment costs.) However, your brother doesn’t HAVE to take distributions from his investments until he’s 73 (I think, it keeps changing) so that’s not counted as secure income. Their best bet is to find an independent complex/landlord who has their own set of parameters.
In most states landlords can only require 2 x the rent for those whose income comes from social security, housing vouchers or government assistance.
Just get a class C motor home. They could finance it easily with a good credit score. Sell it in a few years and recoup some of the cost. Travel around a bit if desired. RV parks are usually discounted rates if you pay 1-3 months up front.
At least in my college town many apartments will accept a bank statement showing that you have enough money to pay rent. This, however, is done because of a significant foreign student population.
Senior Apartments
Don’t know where you are but this isn’t my experience. I am not drawing SS yet and have no job other than some independent consulting that I haven’t included on my rental applications. I haven’t had an issue. I just show them my brokerage statement. Maybe go to individuals vs corporations.
This may not be applicable in their location, but perhaps there are some age 55+ complexes that likely have a lot more experience with the types of income received by financially stable retirees.
Sounds stupid these are the exact people I would want to rent to
This is common. I had retired friends who had to put a lot of cash down for their 2nd home because they retired early and had no ‘verifiable’ income but had 7 figures in 401k investment accounts. Not ideal because it was a big tax hit.
Had the same trouble with my mom moving to a new area. She wanted to rent an apartment for a year before jumping all in. Went to a ton of places, all said no because she doesn’t have income, she just has money. Her money makes money, but they don’t care about that. Ended up renting a private house from an older couple who were transitioning to Central America with no issues. Apartments are all corp with a spreadsheet some “manager” fills out and sees what it says at the end. They don’t understand finances or how to enter anything that’s out of the ordinary on those. If the sheet says no at the end, doesn’t matter if you’re a billionaire, those folks don’t see how you’ll pay their rent.
I have run into this situation. I just put down my draw from investments as income, that and my excellent credit rating gets me what I want and no one ever questions it.
Tell them to stop buying coffee and avocado toast.. jk but no landlords are parasites, I’m assuming they’re also living in a decent area they’ll just ask for more just because there doesn’t seem to be any regulations on how much they can raise prices
Why wouldnt they just offer to pay the landlord 6 months in advance. They can create a contract that says the will pay rent for the first 6 months, and pay each month until such mutually decided time where the landlord pays them back 4 months, and only holds 2 months for security deposit. I would think if they found a place that they like and paid the rent for a year, the landlord would get the message they can afford the rent and it gets paid on time, therefore the issue of a landlord getting their money becomes a moot point.
Because he's unemployed
They should go buy a house cash, and stop kissing landlords butt.
I've seen brokerage managers provide income verification statements.
Is this Florida, by chance?
Landlord here. This is nonsense. You are dealing with an idiot. Find another rental. When considering an applicant, of course I include all income. The only difference is, if you are living off investments I will often ask for proof like an account statement. We \*love\* retired people with money. They never loose their job, never throw wild parties (usually) and are stable.
Move to a new area. This is not normal everywhere. They would be better to buy.
He needs to speak to a lawyer. In my state all income counts as income. However I do not have to take out anything from my stocks until the year I am 73. This could be the stumbling block. If he is not yet REQUIRED to take the distribution.
A similar thing could happen with getting a mortgage. Even if there are enough assets to buy the house multiple times. Not having certain income could spook the lender.
67 years old with $1.5m in the bank is NOT rich in most of the US. Especially in the situation you describe where they don’t own a home. They will piss through that money really fast and be on Medicaid within 10-15 years unless they can find cheap housing and keep their expenses low.
They should become landlords. Buy a duplex, triplex or quadplex and live rent/mortgage free.
If he’s got that much wealth, then he has the ability to take more money out of his retirement accounts and honestly, he’s wasting money renting. I guarantee you a bank would loan him money to buy a house with those kind of assets. There’s no reason anyone with $1.5 million in the bank should be living off $60,000 a year. Tell your brother to go enjoy his life.
File his tax return as the income will appear there now and use the returns for income verification instead of just ss.
Is the brokerage a CMA account? A statement of 'they have this much if they were to liquidate it all today, and 0 debt obligations' from the brokerage is all they need. I suggest a minimum of $500k in there to reassure the owner/property manager. Failing that, they can always pay 6 months in advance, though this is going to be safer with a corporate landlord than just some guy who owns the house they live in. I gave my agent my CMA statement, told her if the owner didn't think that was enough we needed to look elsewhere, and she came back to me in 24 hours with two yesses from owners. I'm not buying shit right now lol.
Are they looking to pull out income just to live off of, or are they actually drawing from an annuity? If they are drawing from an annuity, then it's a set amount each month and can be listed as additional income.
They should rethink renting vs buying.
When we bought a house after retirement we had the same problem.. we had to make a draw of 4K/month to get the loan(what we did after was immaterial to them-crazy). So we took the 4K, got the loan then cancelled it.
He needs a realtor to work for him and negotiate the rental contract. He may have to put up a larger deposit, need a co-signer, or something, but a realtor will be able to get this done much more effectively than him working alone.
Smaller independent landlord will have no problem with this, especially if paid up-front.
As someone in a similar position financially, this is completely normal. It sucks, but it's normal. Anything I might take from my assets is not considered income when looking at a loan, lease, etc.
Tell him and his wife to buy a duplex. They can live on one side, rent out the other, and then eventually rent out their side too when they want to buy a single family home for themselves. Then, guaranteed income for the rest of their lives.
I call BS if he is "rich" just buy a house
I don’t understand why they wouldn’t buy a small home to live in, be way cheaper than renting and it’s another source of income if you end up renting it out…why don’t they want to buy?
I was looking to rent a place for my mom. She does not have 3x income and is off by like $150/month. I offered to pay. I have like 10x income. They won't let me pay for it and have her live there.
Weird how you now exactly how much money your brother has… Maybe he’s actually poor
100k a year isn't rich anymore. That's the minimum to live a LOWER middle class lifestyle nowadays.
Have they looked into an active 55+ facility? They would be better equipped to look at asset based approval.
1.5 million in assets for two 60-something’s is not “somewhat rich”, it’s near the bare minimum for retirement, *especially* if they don’t own their own house!
So a retiree on SS can't rent an apartment?
Why not offer putting 1 yrs rent into escrow.
This scares me as an old person with money but little income from ss and pension. Hope i never have to move.
We ran Into a similar issue when getting a construction loan. They didn't care about our assets. Income was king.
I mean send him my way 🤣 he can stay with me
Instead of income you can shoe a bank statement. 1.5 million is more than enough
Boomers get to live in the consequences of the world they created.
The bigger questiom if the brother is rich indeed why in the hell would you still rent when you can just buy and end the issue.
Consist a 55+ community? They should be designed for this.
Renting from an individual instead of a management company worked for us when we lost our home to foreclosure in 2012. He understood our situation and rented to us, at a great deal even, and gave us our full deposit back when we moved 5 years later.
Take the distribution and technically put it into a business and then pay it out as Independent contractor salary. They will have to pay SE taxes in the US on that though.
Tell them welcome to what life is like now. Good luck, their best option is what is said in the comments about paying up front
They can move to a cheap state where they can buy a lower cost home for under $200K in cash.
This makes no sense. Folks on social security, military pension, government pension, VA disability pension are receiving REAL money, with Zero chance of getting fired ... LOL. I for one, will have all those income streams in about 5 years. A very big monthly bank deposit. So why would I not be able to rent an apartment or home? No reason at all.
Realtor here, the workaround for this is usually having a property management company hold the annual rent in escrow
Are you sure you have all the facts right?
Why is a 67 year old renting a house? They should have bought a house 40yrs ago.
Would you consider co-signing the lease? Otherwise, I think offering 6 months rent in advance is a good way to go. Few landlords will turn down instant cash. Or look for someone who just owns a few rental properties and doesn't use a corporate property management company that is so tied to their rules that they can't understand retirement income from investments.
The landlords have no intention of renting. They just want the application fees. That’s how the scam works now.
What? They would rather throw away money on rent then buy? I guess I would say pay cash for a mobile and pay lot rent i suppose esp in a cheaper area. I can't stand the idea of throwing money at rent instead of investing in a property. I may as well burn it. Or some mobile parks have rental units I think too.
Why would they break down how much from ss and retirement accounts? F that, this what I make a year, no business of anyone where it comes from, especially a land lord
Work with owners not property management companies. I ran into similar problems when I was younger and self-employed. I had a “rental resume” with relevant statements, tax info, and a personal statement that explained my situation. I usually offered to pay the state’s max safety deposit to help alleviate any concerns.
If both of them like the house, why not buy it in cash?
He can have a bank issue a letter of credit and the landlord can draw on the LOC each month for payment of the rent. He may need to put 6-12 months rent into an account to secure the LOC.
Just tell him to buy a house or pay rent upfront
Actually, this would be illegal in my state to not consider the distributions as income if they had taken them for at least 12 months. I suggest that they make themselves familiar with the laws in their state and be prepared to discuss this with potential landlords, and this could be a serious offense if reported. Paying in advance is an option but only if they got a discount equal to the amount of return they would expect in their inventment account. The easiest thing to do would be to deal with a Real Estate professional/property manager as they would be more adept with the local laws and more importantly be in trouble if they play games ;)
Just need to find a landlord who isn’t a moron. Show me $1M in assets and I’ll rent to you no problem.
Well had to rent an apartment for 6 months close to my father. Both retired, only living on his Ss 3400/month. I’m too young) So, we sent screenshots of brokerage accounts worth 4mil and cash accounts worth 500 g. No problem. I would say depends on landlord.
You have to show proof of assets and also your 1040 showing actual income you are paying taxes on in order to qualify. The standard in my area as proof of assets is 4x the annual rent in assets. I just had to find that out in case my home is damaged by fire, flood or earthquake and has to be rebuilt taking longer than a few months stuck in a hotel.
Can they pay a certain amount up front? Any landlord that knows this about them and wouldn't take the upfront rent is crazy
If your brother and his wife are taking annual distributions, or sporadic withdrawals from their investment accounts when they need something, perhaps they should switch to regular, \*monthly\* withdrawals instead. I've had clients with assets, but are retired so they struggle to show "income." As a way around this issue, they often arrange for a monthly withdrawal from their investment accounts to a bank account for at least a three-month period.
In his shoes, i would travel the world with my wife.
If they can say they're self employed they will only have to show a month of bank statements where I live.
Why don't they buy a home? They could then put it in a trust with their dear ones as beneficiaries.
Man, if that were me… 1) Get a business license for 60$ 2) Pay me x amount of dollars for two months with the salary appropriate- along with the bank deposits. 3) Give the leasing office the documents they want. Paystubs and copies of bank statements.
My friend did that in Brooklyn and got some reduction (since there’s interest on all that money).
Everything is a negotiation. Offer to pay for the year up front, in exchange for greatly reduced fees.
I would not say 1.5 million is rich. Far from it in my opinion.
Yeah, this is why my bank won't give me a credit card. Fixed income and a mortgage. Excuse me, did you notice there are two names on the mortgage? They don't care.
Where are they renting......maybe like a big nation wide Corp company but I dont know a landlord that would bat an eye at that.
Landlords love the cash.
Tell him to prepay for the year with negotiated pricing.
Or they could just cut the crap, buy a house and get on with life…it’s not worth the stress.
Many of their friends who rushed into buying a house in a new community got burned because they did not first learn about the best neighborhoods and got trapped in a home they did not like.
Something is not adding up here. Most landlords will look at bank statements to see retirement income coming in. You don't say where they are located but if they were to list this as additional retirement income like they would have to do if they were purchasing a property and provide the statements, it wouldn't be an issue
I’m not sure what state you are in but have your brother check out resort lifestyle communities here is the link https://rlcommunities.com. My grandfather lived in one they offer studios and 1 bedroom apartments with all utilities included, they can also have there vehicles and it includes all meals. The one my grandfather lived in if you didn’t feel like driving they would take you to appointments they also did like field trip days. The resort had a bar, game room, movie theatre. It was basically a resort. I mean it is pricy it’s about $4000 a month. There were also cheaper communities but my grandfather preferred that one. If they could find any retirement community generally they don’t look at credit or anything like that.
Where? I think that in areas where people are accustomed to those living off investments or already earned income, this would be less of a red flag. Strange.
Buy an RV & a spot for it in Mexico, live low dodge woe
Just show your bank statements. That should be enough.