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Do not pay up front in cash. There are so many things that can go wrong, it's not even funny. I'm sure you can find an escrow service that would only cost a few points for this. I would rather pay a little if I had to, then pay it all upfront.
I haven't had a credit check for a rental in a while,
http://www.residentdata.com/ is much more common these days.
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An escrow service might be a really good idea. Does anyone have any experience with this?