Tenants may not be all that different. Make a rule and stick to it.
Our deal is tht rent is due the 1st, late after the 4th, and a 3 - day notice goes up on the 5th if we don’t have the rent or have not had a prior agreement with the tenant.
They also know that we WILL file after the 3 day notice, and IF we file, we WILL pursue to adjudication, whether they move out or not, and it will be on their records.
We have NEVER (so far!) had to evict. We have helped some tenants move.
We also have a “rent discount” for prompt payment, in lieu of a late fee.
Mr. Landlord would suggest Visa payments, or EFT from their checking account. We have a lot of folks who bring or mail us money orders… and don’t have accounts.
Do these people make their car payments and utilities payments on time? If so, they figure YOU don’t CARE, and because they can get away with sloppy payments, they do.
Now, don’t get me wrong. We have 2 tenants with whom we are working VERY hard these days - but it is by choice… and it is our choice to plug the plug too.
Run it as a business. Take care of their needs, and let them know they WILL take care of yours, or not be amongst your residents!
I own several properties. I am a landlord. So how in the
world does one become an effective landlord? My main beef
is getting the rent payments on time! That is my number one
concern!
It is all in selecting you renters. Also, being able to select your renters, is all in selecting the right properties. I only purchase properties that people stand in line to rent. That way you can get a near perfect renter. I have no grace periods I tell them its due one the first and late on the 2nd. I say mail the check as early as you want it will never be cashed before the first. If they need a grace period, I say would you like a 15 day grace period? If yes, well then pretend it is due 15 days before the first !!! So far I have never had trouble. (I am knocking on wood)
Posted by Hugh James on April 17, 2000 at 16:37:07:
I leave the rent collecting to my son who’s a deputy sheriff. He’s tenants and I’m taxes. He’s much better at being “fair but firm” with the tenants than I am. (I always fall for their “the dog ate the rent” stories.) What I wanted to add was this: In determining rents, allow yourself as much of a “deadbeat factor” as you can. When we first started out, if someone didn’t pay the rent on time, we were going to be going into our own pockets to make the mortgage payment. If somebody had to be evicted, we paid. If someone tore up the place before leaving, we were in trouble. And this is back in the days when the money we were making up was coming from our J-O-B-S. It hurt.
Now we have a set aside fund. (We won’t buy a building anymore that puts us in a position of running too close between the mortgage payment and the rental income.) We’ve built in the cost of evictions, tenants who don’t pay for three or four months, legal fees, holes in the walls into each payment from each unit each month. Do I want to evict? No…frankly, I think it means I failed somewhere in the selection process. Do I want loser tenants and pluged up toilets? No…but now it doesn’t hurt so badly, because the tenants paid, not us.
Re: How Does One Become An Effective Landlord? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on April 17, 2000 at 11:08:51:
I have to disagree with Pat… Having payments due on the 15th would be a pain for me. I like to match payments with expenses. That means I want my payments due the same time my mortgages are due- which is the 1st.
As for collecting the rent, I 2nd what has been said before. Be fair but firm. Also, the “discount” method seems to work for me. That means that the base rent is 800 per month. But if the tenant pays me on or before the 5th I allow them a discount of 50. If I ever have to collect late fees, I collect on the 800. If I ever have to evict and/or go to collections, that is also for 800.
People are going to stretch out the payment as far as they can, so here are two methods we have used that helps alot.
1- Payments are due on the 15th (this method gave us breathing room)
2- Give a courtesy call the day before late fees are assessed. Assess late fees and collect them.
3- Send ALL notices on time NO MATTTER WHAT the tenant states. Make NO verbal agreements
Hope these help you as much as they have helped us.
Pat