Posted by Wayne-NC on November 01, 2006 at 07:16:30:
I view rent as a loan after the due date and make my tenants understand that from the beginning so there are no suprises. If the situation arises I begin with, “Remember Mr. Tenant the “loan” terms that we discussed…” and so on. You are going to take weekly installments on a loan without a finance charge? Do you think that your lender will do that for you? Use Dave’s method and get the money BEFORE its due and the additional money is again for your efforts and flexibility. Be nice but remember, you hold the cards! I have in the past “financed” a tenants deposit over 4 months without a charge simply because they were good for the property. There is a cost for everything in this world! Most are not as obvious to the common persons. I can find a “cost” in everything and charge accordingly. However, not necessarily always to profit, but as a reimbursment. In other cases it is my good nature and viewed as charity, whether it is my time and/or money. I believe somewhat in karma too. A little off subject but you got the idea.
Re: Good tennant wants to pay weekly - Posted by Natalie-VA
Posted by Natalie-VA on November 01, 2006 at 07:51:04:
“I’m sorry Miss Tenant. You’ve been a good tenant, and I’d really like to help you out, but I can’t pay my mortgage without that rent payment on the 1st.”
Posted by John Corey on November 01, 2006 at 07:24:12:
Carl,
The others have covered the issues related to more frequent payments, the fact that you should be paid for the extra payments (52 vs. 12) and maybe she just can not afford the rent any more.
What you need to be very careful about is the laws for eviction. Some of the laws are based on the period and others are set assuming a month. Hence when you serve notice, how you serve notice, what it means to be late, and other factors all could change. You might also have rules that are for short term vacation or holiday rentals that define anything less than a month as being under a different set of rules.
Mr. Landlord has a good set of rules for why you should be happy switching someone to weekly or ever 2 weeks. At the same time your community and state will have rules for the contract requirements and notice periods. Do some homework.
Frankly, until you find out if she can really pay the work to set up something other than monthly might be secondary.
Re: Good tennant wants to pay weekly - Posted by DaveD (WI)
Posted by DaveD (WI) on October 31, 2006 at 09:19:19:
You can go weekly pay, if you want. But you should get something for your added hassle.
Don has it almost right… he is just being too charitable. Using his example, take the 1,000 and divide it by 4. That’s $250. Make the rent $250 per week… that adds up to 13,000 per year, or an additional 1,000 for your added collection efforts.
Re: Good tennant wants to pay weekly - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 31, 2006 at 08:56:15:
AFAIK this is no lose for you. As mentioned, she is a good tenant so why would you NOT want her to stay.
Also, getting paid more often is always better. First, you get the money sooner and that is good. But second, it gives you an earlier warning that there may be a rent problem.
The only possible downside I can think of is that you don’t want to run afoul of any special laws for short term rentals (boarding hotels). So I would check your tenant/landlord law for that.
Re: Good tennant wants to pay weekly - Posted by Don (VA)
Posted by Don (VA) on October 31, 2006 at 08:44:44:
You’ve really got two separate issues here: (1) week-to-week arrangement, and (2) ability to pay.
But, frankly, the answer seems obvious. You’ve got a good tenant. She pays on time. She takes care of the place. She wants to pay weekly rather than monthly. No problem. I’d say yes.
As for ability to pay: Talk to her. Raise your concerns in a non-confrontational way. Say, essentially, “You’ve been a good tenant. I really appreciate that. I am concerned about your ability to continue making payments without your boyfriend’s contribution. Can you share with me your thoughts on how you’ll be able to do that?” She may have a strategy already in place. On the other hand, she may realize that the rent may be a problem for her and that she should look for another place. But raise the question with her and find out what you can.
As for structuring the new rental agreement, just change the paragraph that refers to monthly rent (for instance, “Rent is $12,000 per year, paid monthly at $1,000 on the first of the month” to “…paid weekly at $230.77 on every Monday.” Other provisions probably can remain the same.