You can only collect up to three months’ rent in advance. Rent paid in advance does not mean you have more or less income, just that you receive it in a lump sum, before your tenants pay it.
If you spend the advance and have an unexpected expense in the subsequent three months, you will have to cover it yourself, therefore advance rent requires careful budgeting. We can help with that, with our free Expense Tracker.
What’s more, if your tenant defaults on the rent and Mashroom is out of pocket, and you do not have Rent Guarantee Insurance, then it can cause issues.