Skip to content

Incent your tenant to pay the rent on time

May 22, 2011

I wanted to post something about the last family that I had in Property 2. They were young (21,20) and had one 6 month old child.  Their credit came back good. I confirmed their jobs but there was no previous landlord to check in with.  They have never lived on their own before – only with parents.  They also tried to negotiate the rent with me.  Many landlords don’t like this, but I don’t mind it under certain circumstances.  If they are trying to get a house for $900 per month when I am asking $1200 then they can’t afford the house.  My young couple was trying to get me down from $795 to $750.

I negotiate for a living, so I have more respect for someone when they try and negotiate.  I overheard the couple talking as they were looking at the house.  They were talking about saving some money for the utility deposits, buying furniture, babysitter, etc.  I knew then that I wanted to rent to
them.  They were forward thinking and appeared to have it together.  When I looked at their income, they were both working good jobs and had enough income to pay the rent.  I decided I wanted them and agreed to move the rent down to $750 with some caveats.

I agreed to the $750 if they paid the rent before the 2nd of the month (We set rent to be due on the second). If they paid on the second or after, they paid the full price of $795 plus any applicable late fees.  This has worked great. I almost always picked up the rent a day or two earlier.  On one occasion he called me and said, “I have the rent and want to pay you before it goes to $795”.

When we signed the lease, I made this a separate page addendum and talked about the negotiated rate and conditions in which it was valid.  This really makes it clear we negotiated an alternative arrangement and stresses the importance of the rent being paid on time. So just to be clear, I left the rent amount in the lease at $795 and allowed him to just pay $750 if he met the requirement of paying the rent early.

I did not seek the advice of my attorney when I typed this up, but my tenant does not know that. It’s more of a gentleman’s agreement anyhow and worked great.  Below is the agreement:

Rent payment terms Addendum v2

Advertisements

From → Landlord

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: