Rental Money Transfer

What happens to the advance deposits you have already collected for this year?

If you are selling a rental property, there is a good chance you will be in possession of advanced rental deposits at the time of closing. This money is considered rent and therefore belongs to whoever owns the property at the time the renter occupies the premises. What this means is you might owe some or all of these advance rents to the buyer.

Here is an example of how this might play out; A buyer looks at your house in the end of May and makes an offer in June. The closing takes place on a Wednesday in July while renters are enjoying your house on their vacation. The rental money will be prorated so that all the proceeds collected by you or the rental company for the timeframe before the Wednesday closing will remain yours and any money collected for the timeframe after closing will go to the buyer. If the closing takes place in the middle of the day, you and the buyer will each receive one half of that day's rent.

If the closing takes place in May, before any renters check in but after you have already collected the advanced rental income for the season, you will have to turn over all of the rental proceeds to the buyer. You will not be the owner during any of the time the house is rented so none of the money goes to you.
This may not seem fair but if the renters will be using the house at a time when the buyer is the new owner then it really is only fair that the new owner receives the rental income.

This is one of those little things that gets routinely overlooked by everybody up until the closing statement is distributed. You need to know this up front to avoid the shock that many sellers experience just before closing when their closing attorney notifies them of their proceeds. Don't worry if you have already spent this money as the funds can just be subtracted from your closing proceeds, so no money needs to actually ever changes hands.

Choosing an Agent



  • Print Advertising - Your property will receive unprecedented continuous exposure every month it is listed for sale. Your ad will appear every month in the Homes and Land magazine, instead of the typical ad rotation.
  • Virtual Floor Plan - Each residence is measured room by room for a concise virtual floor plan with lots of inter grated pictures of the property for a true Virtual Tour and not just a slide show of pictures.
  • Maximum Internet Exposure - Your property will be exposed to millions of people on 30 national real estate websites and with 8 news organizations including ABC, FOX, New York Post, Washington Post, New York Times and Cox Media.
  • Professional Photography - Don't let your house languish on the market because of poor quality pictures. Too many listing agents treat photos like it was still the last century. Pictures sell real estate!
  • Lock Boxes - Electronic lock boxes provide 21st century access.
  • MLS - Your property information will be entered into the Multiple Listing Service, including color photographs of the interior and exterior of the house, if applicable.
  • Open Houses - If the first Open House has a good turn out we will follow up with more.
  • Reverse Offer - Backwards real estate.
  • As Is - Is this the best way to get what you want?

The Offer

The Closing

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