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 wholeheartedly concur with what Roy has indicated here, I've been doing this for a number of years myself. An associate of mine, Jeffrey Taylor who goes by the moniker Mr. Landlord says that if you're not happy with the way your tenants are performing, it is because you have not trained them properly. The secret to good performance is simple rules, clearcut penalties, and rewards. Don't just implement an immediate penalty for failure to pay rent early or on time, give them a list of items to choose from that you will install in the property after a certain number of months of on time payments, like a ceiling fan or special window treatments--the secret is that they are installed in the property and remain with the property as gradual upgrades.
Just because they are tenants, and their parents have been tenants doesn't guarantee that they know how to be good at it. Train them early, and be willing to enforce the rules that you set up. You CAN teach a tenant new tricks!
Dallin Wall
Real Estate Training Team
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