OfflineDo you own rental properties? If so, you are learning the importance of having your rents collected as quickly as possible.
The typical rental contract allows for a grace period of 3 to 7 days after the first. For example, if the rent is $700 and due on the first, the contract may allow for a 5 day grace period before the rents are due. Typically a late fee is attached to anything that is paid after this grace period.
Why not try this? Set the rent at $800 and give a $100 discount for paying on or before the first. Have late fees beging accumulating on the second.
You are still going to get your $700. You will be getting it on the first and not the fifth to the seventh. Your cash flow position will be strengthened.
Good luck and happy investing.
Roy Voeks
Official RE Coach
I have started doing that with my rentals, and it works! I still have some that have a grace period until the 4th, and guess when tenants pay the rent? on the 4th! and if the 4th falls on a Sunday or holiday, they pay the next business day, and ignore the late fee...
I'm now trying to set up a payment through an online rent collector company that sends reminders before rent is due, notifications when rent is late, and collects the late fee with the rent; tenants go online to pay and the money comes out of their account, and is transferred to my bank account. Pretty simple... They can set it up where the rent on the 1st is with a discount, on the 2nd it has a different amount, and then after another date, it can have a 3rd fee which will include a late fee...
I'm looking at rentmonitor http://www.rentmonitor.com/
they charge $2.00 per transaction with a minimum of $10.00 per month.
If anyone has used any online rent collector and can recommend I would appreciate it.
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Roy,
Not the worst thing.
We do this on some of our contracts,this is a great idea. We still have a tenant who just loves to pay late every month. We get an extra $100 every time
Thanks,
john W
John and Julie Wakefield
JCW Properties, LLC
Will use this advice in the future! Would anyone of you, Valuni, JCW or Roy mind giving me advice and or working with me? I am working with an investor in Wis. SN Sandiboots and she is awesome in helping me...I just would like to expand my network thus possibly giving me an advantage at more hands on experience and knowledge!
Please PM me with your thoughts regarding this matter!
Thank you and stay blessed!
~NickandGen
~Blessed beyond measure and enjoying life to its fullest!~