Landlord insists on being paid in cash. Your opinion?

I found a nice rental place in a new house in an upscale subdivision that was advertised in the paper. I met with "occupiers" of the house and they showed the place...a retired European couple, and their daughter in law. Apparently the D in Law was handling all the affairs since the couple was poor in English (which is the case in the current place I have rented without problem for many years). I called her later that night to and she said that they would require a deposit of $450. I went over the next day and had tea with the very average ethnic couple, and at the end of the rather comfortable conversation I produced a check for the down payment. At that time the wife informed me that they would need the money in cash since they were on a disability pension and couldn't show an income. I said OK no problem. There's no question they occupy the house. There's no lease to sign but I want to know how to handle this...the DIL lives just around the corner. but is it unusual to be cash only

Landlord insists on being paid in cash. Your opinion?
as long as you get a signed receipt for cash, it's not a problem. Their reasons sound valid, but I would insist on proof of payment, with no excuses. Your receipt will not screw them up as far as disability goes unless you are working with SSI to nail them.


If they refuse the receipt giving, DO NOT rent the place. Whatever reason they have for not issueing a receipt is not good, they can screw you on the rent or boot you at any time for no reason and keep your money, no matter how nice they appear now.
Reply:Write up a rental agreement yourself, and have them sign it, and make sure they give you a receipt every time for every dollar you give them. it's ok that they don't want to show any extra income, because the government will penalize them, but cover your behind with a written rental agreement just between you and them, and definitely get (and keep) receipts.
Reply:always ask for a reciept when you are paying in cash.
Reply:I haven't even read your whole story and I see RED FLAGS!


If you pay in cash, that owner can do whatever they want with that money. If they don't pay the mortgage, and the bank forecloses, where do you think that leaves you?





No I wouldn't pay any landlord cash, no matter what crap they tell you.


A lawyer, I'd be especially cautious.





Don't be a fool and fall for this scam.
Reply:If they disclose the rental property they could lose the disability money. By having the DIL do it they can say they let her handle it and thought it was ok.
Reply:Sounds a little shady to me. If you must give them cash, insist on a reciept with a signature on it so you have proof the rent was paid. ( in case a problem should arise )
Reply:Sounds sketchy. If you are going to pay in cash, though, make sure you get some type of receipt from them.
Reply:There could be many reasons that the daughter-in-law is demanding cash only. A good way to protect yourself is to take a receipt from her ever time you make a payment. If she can't make one then you can easily whip one up on Microsoft Word. Be sure to include the amount you are paying her, the date, and get her to sign it as well. This can protect you in case they decide to pull a fast one. Also, a piece of paper with HER signature and date is pretty hard to refute. Best of luck in your new place :)
Reply:Is the plan to defraud the government? Sounds like it is. I play by the rules so I think this stinks.
Reply:YES IT IS, the problem is what they are doing is illegal for them, to collect money from you and not claim it, also it puts you on the spot, because if you want to claim your money at the end of the year for renters credit its going to come back and bite them in th but. plus even if you pay in cash they still have to write you a reciept for it, to prove you paid, in case they try to scam you later for more money. your considering a very touchy situation that i believe isnt going to have a good ending to. I would look elswhere for a place to live honestly
Reply:I would say it would be ok, as long as they provide you a receipt and draw up a rental agreement.
Reply:If they insist that you pay with cash, insist that you get a signed receipt each time you pay. This way your money is accounted for. You never want to give out cash without a receipt because the owner may tell you he didn't receive a payment, ya know? I work for a property management company and at one time, one of the former resident manager was telling residents to pay in cash, but then he was pocketing the money.
Reply:This is dangerous - no lease and paying in cash leaves you with no proof of payment. I would pass on this deal.
Reply:DO NOT MOVE IN!!





I cannot stress this enough.





What they are doing is by only accepting cash and not giving you a lease is saying is that you as a tenant have no rights as provided by law. As nice as this "elderly" couple may seem, it's still a business transaction, and you've just gave away your rights.





I get these kind of cases on a regular basis. The landlord wants cash (he's breaking IRS and Social Security laws, do you think he'll think twice about breaking rental laws.? Not a bit).





I understand the cash part, it's tough with this economy on the elderly, but no lease? At least insist on a legal "rental agreement". It's not a lease, but it give you at least some rights. He can ask you to leave on a moments notice if he likes and you can't say boo. Why just give up your legal rights for no good reason to benefit strangers you don't even know?





Here's how I see it happen all the time. A nice European couple rents to a nice young person, but as soon as you move in and they have your money, they tell you about the "rules", which for some reason, don't include your legal rights. They enter your house when you're not home, tell you who you can have visit and get all up in your business, because they're retired and bored.





Unless you yourself have bad credit and/or a criminal record, why are you even considering entering an illegal rental situation where they have all the rights and benefits and you have zilch? And if they are ever caught, as often crooked landlords are, you could be prosecuted as well.





Rarely do these kind of rental situations work out well. Most end up with the tenant moving out or getting thrown out within six months. You'll be back right where you are today, minus several thousand dollars. And brokers love these situations, because they get a commi$$ion every time a new tenant moves in and they could care less if it's legal or not.





Don't do it. Take the time, find a LEGAL place to live, with a lease or at least a rental agreement, and pay by check, so you have a record should you ever get audited by the IRS. (hand written receipts aren't good enough for the IRS). It's hard, but you'll thank me later, and good luck in YOUR new home.
Reply:I dont see a problem just get a receipt each month or pay with a money order and to protect yourself, also get a friendly lease or something in writing that you are infact living and paying rent to them in exchange. A word and a hand shake used to work but these days you can't simply trust anymore. After a year you can tear it up after you know them better. Aside from that I'd be sure to take plenty of pictures of the unit before you move in so there are no false claims of damage later...
Reply:You need a lease to protect you and your belongings. You also need to pay with a check or a money order for your own protection. A receipt book from Office Depot or Staples isn't good enough. If at a later date you need proof that you paid rent to a different landlord or to a mortgage broker if and when you decide to buy, this will be your only saving grace. If they don't want you to sign a lease and won't take a money order don't do it.
Reply:yeah thats weird. Understandable story but I'd be cautious. Ask for an agreement in writing and receipts.
Reply:That's outrageous !!





They are clearly breaking the law by trying to avoid paying taxes.





All of us who earn money or have income of any sort are paying taxes. Why should these people be exempt?





I wonder how they got on disability owning rental property?





Run and report them to the nearest appropriate government agency.
Reply:Sorry, but my BS detector is giving me warning tones.





While this might be totally legitimate, i.e. avoiding having their old age pensions reduced due to income, but it might be a scam.





Talk to the neighbors. Make damned sure the people you talked to are the actual tennants of the place, and that they've been there as long as the say.





While it is rare, I've heard of con artists taking over an unoccupied house or apartment and then selling or renting it to several different people before taking off with the loot.





Something just does not feel right about this whole thing. The deposit seems too good to be true, and the cash only deal really makes me wonder.





Doc