I’ve perused the rent credit agreement provided by the bootcamp. Am I understanding correctly that only the first month lot rent and home rent plus a security deposit in the same amount is what is generally accepted as entry to a RCP home?
So if my rent is $650 including lot rent then $1300 total is received plus any pet deposits?
If so, seems low to me at first blush but I’m new to the program.
That is typically the amount most landlords collect. Some states allow you to collect more so check your state’s landlord tenant laws but also remember the clientele you are dealing with and the amount of money they have available. When we rent our SFH we just make the rent a little higher each month if they have a pet and don’t charge a pet deposit this way that extra money is ours and goes to the pet damage or whatever else we need or increases our profit.
“Low” is in the eye of the beholder. In many markets, $1,000 is about as high as you can go, and in others you can get $5,000 or more. The key is to figure out which market you’re in. Try an amount, and then change it if the pushback is too severe – that’s the only way you’ll know how far you can press it. If you pitch $2,000 five times and the renter walks away, then you know that you have to go lower. You’ll find you can get a much larger deposit in areas where the SF and apartments cost more, simply because are mentally prepared for that. About the lowest I’ve seen is in the southeast, where the total for rent and deposit can top out at $500 or so. The highest, of course, is in California.
Found it. It’s from Jefferson. Below is his quote:
RTO or RC, it makes no difference to your pricing. We take $2,000 down and sell most of our 3/2s for $600/month for ~60 months. We’ve added a line to F&D’s standard RC form that calls out that tenants are purchasing $2,000 rent credits up front. Same pricing, different legal contract.Hope this helps,-jl-