Nine out of ten real estate agents are explaining the '+1' clause incorrectly to their clients. And this is costing them credibility and contracts.
As a real estate lawyer who has advised on hundreds of rental agreements, I can categorically state: the confusion about the '+1' is destroying the trust that we worked so hard to build as a professional sector.
When the wrong explanation almost lost a customer
A month ago, I received a tense call from a client. "Reyna, I'm confused. The rental application form asks for two security deposits plus an additional '+1'. What exactly is that '+1'? Is it a commission?"
I asked him for five minutes to explain something that would completely change his perspective.
“That ‘+1’ isn’t a commission, an additional deposit, or legal fees,” I told him. “It’s your first month’s rent, paid in advance. If you move in today, June 6th, that month’s rent covers you until July 6th. On July 6th, you pay again, and it covers you until August 6th, and so on.”
Silence on the other end of the phone.
"When your contract ends on June 6, 2026, the payment you make in May 2026 already covers you until that date, that is, until June 6. You don't have to pay before moving out if you move out before June 6, and the landlord must return your two deposits plus the accrued interest."
"And who loses that '+1'?" he finally asked.
"The owner. Because he's using it to pay the fees of the real estate agent who brought you in as a client. In other words... me."
That day I gained a polite customer. And I confirmed something worrying: if customers are confused, it's because we're not explaining things well.
The diagnosis: three critical failures
This confusion reveals systemic flaws in our sector:
The language we use is confusing. We say "2+1" without explaining what each number means. To the customer, it sounds like mysterious math, not a transparent process.
Some agents don't fully grasp the concept. I've heard explanations where professionals confuse advance rent with commission and legal fees. If we don't understand it ourselves, how can we expect the client to?
The pressure to close the rental deal leads us to explain things poorly. In our eagerness to get them to sign the contract, we give superficial explanations that create more doubts than answers.
The result: tenants go home feeling like something's off. And that mistrust contaminates the entire relationship and the whole sector.
The correct technical explanation
Let's clarify this with legal precision:
The "2" represents security deposits. They protect the landlord against damages or breach of contract. They must be deposited with the Agricultural Bank, accrue interest for the tenant, and are returned at the end of the lease.
The "+1" is advance rent. It's the payment for the first month, which is used immediately upon moving into the property. It doesn't accrue interest because it's not money held in escrow; it's payment for a service received.
The difference is fundamental: deposits are returned, advance rent is consumed.
The tenant doesn't actually "lose" that "+1". The landlord uses it to cover the real estate agent's fees. The tenant pays three months' rent upfront, but only "uses" one. They fully recover the other two.
The foolproof method: how to explain it correctly
I have developed a 5-step method that eliminates confusion:
Step 1: Calendar Analogy
"That '+1' you pay today entitles you to live until August 6th. It's like buying a month of services in advance."
Step 2: Explain the cycle
"On August 6th you pay another monthly installment that covers you until September 5th. You always pay first, then you live."
Step 3: Demystify the "loss"
"When your contract ends, the monthly payment you made in June 2025 already covers you until July 2026. You don't pay anything extra when you move out if you move before July 6, 2026."
Step 4: Clarify the destination
"Where does that '+1' go? The owner uses it to pay the real estate agent. It's part of the cost of doing business."
Step 5: Close with certainty
"In summary: you pay 3 monthly payments upfront, you get 2 back at the end. You only 'consume' 1, which is exactly the first month's rent."
This explanation takes 2 minutes and eliminates 99% of objections.
The risk of the new bill
The rental modernization bill currently before Congress includes a dangerous provision: it could hinder the "2+1" scheme if it is not clarified that the two-month deposit limit does not include the first month's rent.
As we at the AEI pointed out, this omission could eliminate a business practice that works perfectly when properly explained.
Legislative confusion should not amplify the commercial confusion we already have.
Beyond the '+1': the underlying problem
This situation reveals something deeper: we are failing in the basic education of our professionals.
The era of the naive buyer is over. Customers arrive with specific questions and clear expectations of transparency. If we can't properly explain a basic concept like "+1," how can we expect to handle complex inquiries about legal or tax matters?
The confusion surrounding the '+1' is not just a communication problem; it is a symptom of an industry that urgently needs to professionalize.
The competitive opportunity
Every incorrect explanation breeds distrust, resistance, and lost customers. But this crisis presents an opportunity: those who master this explanation will immediately differentiate themselves.
When a client finds a professional who clearly and transparently explains every aspect of the process, they not only sign the contract: they become a reference for other clients.
The correct explanation of the '+1' becomes a competitive advantage.
The time to act
As a lawyer, real estate agent, trainer, author of "Real Estate from a Legal Point of View" and member of the AEI Board of Directors, I make an urgent appeal: it is time to standardize the explanation of the '+1' across the industry.
The next time you explain the "2+1" scheme to a client, remember: you're not just closing a rental deal; you're building or destroying trust in our entire industry.
Ask yourself right now: How many times have you explained '+1' in a confusing way? If you can't remember for sure, it's time to change your approach.
This week, practice the step-by-step explanation. Time it. Perfect it. Because your next explanation of the '+1' could be the difference between closing a deal or losing a client forever.
The solution is in our hands, and it begins with every explanation we give.
