Re: Does anyone use Rental Discounts? - Posted by Irwin(CA)
Posted by Irwin(CA) on March 27, 1999 at 16:29:33:
Steve,
I institute a rental discount with tenants who are regularly late with their rent. Once set up, the rent is almost always on time. You need to make it clear to the tenant that the rent is the full value and not the discounted value. This is particularly important if you have to start an eviction so that there is NO question as to what the owed rent is.
I started offering rent discounts this fall, and it seemed to work for the tenants who were on time anyway. Even a late penalty hasn’t motivated the others.
I’m going to experiment with a rebate for a new tanant that just moved in. If a tenant is in the habit of sending in the discounted rent, if they’re late, they still might send the lower amount. I’ve set up now that they pay the full rent, and if its early or on time for 3 months, they get a rebate. (The software I use should make that easy, it shows rent due and current balance, and will account for early pay discounts.) If I have to send a late notice, they lose the rebate for that quarter, and if I have to send 2 late notices in a 12 month period, they lose the rebate forever. We’ll see how it works.