Get Your Rent Fast

That is actually a really good idea.
I have had students ask me for ideas on getting renters to pay rent on time quite a bit actually.
That could be easily written into the lease agreement & the renter would have some good motivation to pay on time!
This is a good tip & I'm sure I'll consider myself and spend some time sharing it with others that do have rental properties or are looking to get some rental properties.
Thanks for the tip Roy

I started doing this with my new properties/tenants, and the rents are in my account on the 1st of the month.

My tenants who have older leases with a late fee if rent is received after the 4th of the month wait until the 4th every month to pay... and of course, it's already happened that they forgot to deposit on the 4th, and then deposit the following day, giving me all kinds of excuses...

Needless to say, all the leases that are to be renewed will have a 'discount' if paid on the first.

Even better is if you have them pay by the 25th for the "early bird discount"...

For example, if they pay on the 1st it's $800 if they pay by the 25th... it's $750.

Back when I had rentals I would even on occassion have a surprise knock on the door(back then they knew where to find me, lol) on the 25th and a check handed to me so they'd not be late!

Easy to implement, but very powerful.

Great advice Roy!

Thanks, Roy. I had seen this idea on the discounted rents before. Thanks for reminding me of it. And the early bird special tightens this idea even further. Both are great ideas worth implementing. DG family rocks.

Patrick

Great Comments included here! I agree with the idea of early discounts. I learned from a friend named Jeffrey Taylor, who goes by Mr. Landlord that landlords typically get what they train their tenants to do. No training equals unhappy results. He suggested that we get very specific on when rent is due, and offer the discount if they perform better than that, as in an early rent discount date on the 25th at 5:00 P.M., a hard deadline of 5:00 P.M. for non-discounted rent, and a fairly substantial penalty for 1 minute past the deadline, like $75. Then you can accrue a percentage penalty beyond that. So if the standard rent is $800 before 5:00 on the 1st, it would be $750 before 5:00 on the 25th, and it would be $875 at 5:30 P.M. on the first, and going up from there. It's the old pain and pleasure approach. If you want the pleasure, pay early, but the pain accrues very rapidly once the deadline has passed. I've found that by implementing this approach, my tenants become mathematical geniuses on rent payments who will train the other tenants in the building on how to avoid paying more than they have to.

But I not only do it for rents, but ALL aspects of the contract. If any term of the contract is violated, my rent is $100 higher. They only get the $100 monthly 'discount' if they abide by ALL the terms of the lease. Has always worked like a charm and I have had all great tenants.

KEY thing is to enforce it if they do violate something or pay late. I usually have a ONE TIME grace for lateness and depends on situations where I work with the tenants. But, yes, it is a great tool!

I think that is a brilliant way to make extra cash! The tentants don't feel they are getting the wool over theirs eyes!