Pre-paying rent as investment?

[TopHatFox]

Say, paying $650 for 4 months ($2600 lump sum) as opposed to $700 each month for 4 months ($2800 total)

Return is ~7.5% for in 4 months. Of course, there is credit risk (getting kicked out of the space before the months are up). Landlord and space are well organized. Landlord lives in the building too.

Thoughts on this strategy?

[Dragline]

Unless you are a problem tenant, go for it. But I would not accept that arrangement as your landlord.

[wood]

Smart strategy if the landlord agrees. As a landlord I would be open to such an agreement. It's hard to get rid of non-paying tenants here though. I'm not familiar with the situation in your country.

[7Wannabe5]

I'm not sure why you are considering this option when using your social skills to round up a roommate would chop your expenses in half?

[OTCW]

I'm not sure why you are considering this option when using your social skills to round up a roommate would chop your expenses in half?

Could do both?

[TopHatFox]

Already using the roommate option. I rent one room of multiple in a house. I don't believe a 2nd person in my room would fly with the landlord.

It's a HCL area. Not sure I'd be down to share a room either. I would consider it since I don't use the room most of the time.

[classical_Liberal]

...

[halfmoon]

@classical_Liberal, maybe it's a matter of not wanting to subsidize your application fee when they don't know if you'll pass. That could add up if there are multiple unsuccessful applicants. If you're able to pass a credit/background check, they might feel confident that you won't jeopardize the deposit.

As a landlord, I would never allow a sub-lease. HELL NO. Congratulations on finding these opportunities and making them work for you!

[Seppia]

That's how I negotiated down my rent. Got a 5% discount in exchange for paying rent in advance three months at a time (i.e. I will have to pay my October, November and December rent at the beginning of October).
Here in Italy (and more in general in Europe ex-UK) the bulk of the risk is always on the landlord, the laws over protect those who rent. So landlords are VERY scared and their main risk is people not paying.
It's a great setup for renters, because if you
a) pay
b) behave like a good mannered human being
Landlords love you.

[EdithKeeler]

I wouldn't want to do this. You'd lose leverage if something happens and the space is uninhabitable.. If the space is rendered uninhabitable for some reason, in most places you have the right to withhold rent until the landlord fixes the problem. You'd lose thatle by pre-paying (Caveat: Landlord/Tenant laws vary state to state).