One trick I've heard works wonders from someone who has used it:
Don't *just* charge a late fee.
Bymp your rent to *include* the (former) late fee and still list the
late fee.
Then offer a discount (removing the original late fee) for early payment.
For example:
Current Rent $1000
Current Late Fee $50
New Rent $1050
New Late Fee $50
Discounted Rent for being early: $1000
His tenants were chasing him down in parking lots to beat the 'early'
deadline to 'save' money and paying him the same amount he wanted to
collect 'on time' anyway.
He never had another late tenant.
I think he set the timing at 5 days each way, early and late.
Regards,
Adrien
On 10/26/22 6:40 AM, flywire wrote:
The process needs to be right before worrying about the accounts:
1. If your tenant is reluctant to pay rent find a new tenant, no
different to any other business clients that are hard work.
2. Weekly tenant notices with the amount owing seems more like
harassment, and too much work anyway.
3. Rental agreements work best when they suit both parties which
involves communication and a bit of negotiation.
4. My understanding is a lease is an invoice that states the amount per
period and the term. Just send them a statement that is good enough for
legal action anyway. Ask them how frequently they want them (quarterly,
half-yearly, or annually), generally the older they are the less frequently
they want them.
5. If your tenants are paid fortnightly make that the rent period, due
after they are paid.
6. Ask tenants to have rent deducted from their pay or bank account
into your account, they'll normally agree and it makes it easier for
everyone.
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