Posted by SusanL.–FL on December 31, 1999 at 08:20:47:
First of all, if it is a ‘weekly’ rental, someone will most likely have to pick up the rent each week. Don’t count on them mailing it to you (EVEN if you provide stamped/addressed envelopes)! It just won’t happen.
Some of the poorer ‘clientele’ (sp?) just ‘expect’ the landlord to come pounding on the door when the rent is due.
On a ‘weekly’ rental, it would be too easy for you to get ‘stiffed’ on the rent–(if you don’t stop by for it). Many of us have had ‘experience’ with: “it’s in the mail”. By the time you find out that they pulled a ‘fast one’ , they’ve hit the bricks!
From what I’ve heard (with ‘weekly’ rentals), you can charge a little more for the rent but then you have more headaches too. Guess it’s a trade-off.
I have a brief history with a few small rental houses and one lease option. I have a fixer-upper in a poor neighborhood that I have renovated into a 5-bedroom boarding house.
Each room will rent for $60 a week with probably a $20/week discount to the ‘manager’ who will be responsible for making sure everyone cleans up after themselves, fixing little things around the house, etc. I was planning on a 2 week deposit and rent in advance for each coming week, with possible monthly payment as well.
So my question:
What is the best way to collect rents in this type of situation? I’ve read in one of my RE books that it works good to have rent due on Friday for the next week, then show up Saturday with late notices, and kick people out on Monday if you haven’t been paid (or show up and check to see if they have vacated).
But should I have them send me a money order?
Should I have the manager collect the rents (I don’t like that idea)?
Should I open an account at a local bank and have them just go deposit the rent money? (It’s near downtown)?
If they mail it to me I’d rather require them to send it out on Friday (when most people get their checks), so it gets to me on Monday/Tuesday, and make it due Wednesday for the coming week, something like that.
He charges by the week in the slow season. Most of the rooms have kitchenettes. For a 2 room with kitchenette he gets $750 per month. Other single rooms are around a$100 per week. During the hig season
many of the rooms are rented on a daily basis, and occasionally you can rent the same room twice in one day by changing the sheets and vacuuming. He doesn’t take plastic and he doesn’t take checks. Guess what he DOES take? Cash and Cash only. He lives next door and collects the rent in person. Hope this helps.
Happy new century.
David