Posted by Rob FL on April 02, 2000 at 21:09:17:
Cute reasoning, but redo your math. $15012 months = $1800 lot rent per year. $7.5012 months = $90 in late fees per year. $90/$1800 is still only 5% per year.
And P.S. I have some oceanfront property in Kansas to sell you. You can make a return of 60% per year on it. HaHa.
Getting Tenants To Pay Rent On Time! - Posted by Jack-NY
Posted by Jack-NY on April 02, 2000 at 15:26:20:
What would be the best approach as to having our tenants pay their lot rents on time, by the 10th of each month? What appears to be the problem is that by our state laws we can only charge 5% as a late fee,and our lot rent is only $150.00 so this would only be $7.50 late fee.
The tenants know this so they pay late and sometimes go into the next month. Maybe we should raise the rents of these deadbeats to $200 per month and if they pay on time the rent would be only $150 per month. All suggestions are welcome. Thanks…
Offer these payment methods - Posted by Stacy (GA)
Posted by Stacy (GA) on April 02, 2000 at 21:29:51:
Although I’ve not acted on the opportunity to use the notes that I took at the Convention, I’ll share a tip I noted from Jeffrey Taylor. He uses these methods to collect rents for his rental homes.
Offer 3 Worry-Free Payment Methods
If they want to pay with a check, say “sure”. But, tell them that you charge a $25.00 handling fee.
Check out his site www.mrlandlord.com. Click on Auto Rent Drafts in the left-hand column under Landlord Services.
Hope this gives you another idea to use.
Re: Getting Tenants To Pay Rent On Time! - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 02, 2000 at 16:13:05:
Jack,
That’s exactly what I do…charge them, say, $625 per month, but discount it by $25 if they pay or or before the due date. Then, if they don’t pay within 3 days of the due date, I add the late charge. So if they pay on or before the first, they pay $600; if they pay on the 2nd or 3rd, it’s $625; if they pay after the 3rd, it’s $625 plus the late charge.
To my knowledge, there’s nothing in the NY State code which would prevent this. Furthermore, the tenants see it as a reward for paying on time, so it’s more “tenant friendly” than just throwing the late charge in.
Brian (NY)
Re: Getting Tenants To Pay Rent On Time! - Posted by Jack Beam
Posted by Jack Beam on April 02, 2000 at 16:02:58:
5% per month is 60% per year. If you are getting a 60% return on your money per year, why would you want them to pay on time?
No Law against paying back discounting - Posted by RR Smith
Posted by RR Smith on April 02, 2000 at 15:36:29:
crel. sheets course pay back method…You charge the tenants a premium …then give it back if the payment is on time …sort of the opposite of what you have now…also sort of against the spirit of the law…but sort of the capatialistic way…