OfflineDo you own retal 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 tenants that get paid on the 3rd, or every other week...
From my experience, I have found out that good tenants will always pay on time; bad tenants will always have an excuse to pay late, and then try to not pay the late fee... so, I try to get tenants that have a good history of rent payments, have lived in their previous houses for a long time, and have been with the same employer for at least two years; that helps minimize renting to tenants who don't pay on time
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/...
It is not material to me when a tenant gets paid. (Try getting a bank to buy that for your mortgage payment.) I simply do not have collection issues. The tenant is an adult and will make things work if they want the house. In this game cash flow is VERY important.
Roy Voeks
Official RE Coach