Should I allow my tenant to pay 15th to 15th

[James Myers]

Has anyone ever had their tenant pay from the 15th to 15th based on their pay check cycle? 

I have a tenant that said the realtor I use to find tenants for me told him that he could pay on the 15th on each month.  I just found this out and thought they were paying late because they have had some banking issues that I have worked with them on.  But recently I have sent them notification that since the banking issue was fixed they would need to start paying before the fifth or be penalized. 

Even with the banking issue they have always paid between the 15 and 20th.  Should I allow them to have a due date of that or be a jerk and tell them the 5th and if after a late fee is added?

If I go with the 15th should I have a new contract signed adjusting the due date?

[Catherine A.]

Hi James,

We generally prorate and collect on the 1st. It's just less hassle administratively.

As far as the date, depending on your situation, if it's not costing you anything (time or money) then change the date to the 15th. I would most definitely have him/her sign a new contract with an adjusted due date.

If it IS costing you something, tell him you can adjust the date but that the rent will also be adjusted to whatever that cost to you is plus the agreed upon rent. That way they have the option to have the date they want, and you will get compensated appropriately.

If you haven't already, have a convo with the realtor and make sure you are on the same page for future tenants.

Hope this helps you and good luck!

Catherine

[Catherine A.]

Just had another thought...if they are paying on the 15th, then the first month that you agree to let them do this (start a new lease), they will owe you half a month of rent (1st - `15th) plus the month of rent that is due (15th - 15th)..unless you already collected the half month rent from them when they initially moved in.

Hope I'm making sense. It is Friday. :) Good luck.

C

[Sam Guarnieri]

Just a thought here. With you getting paid on the 15th may help with your own cash flow if you have a bill or two that comes due in the middle of the month. If they have been faithful with their payments, let them continue. Also, they may have their own cash crunch at the end of the month so why not get the rent before their paycheck runs out.

[Jeff B.]

It's your call, but consider - - as you grown to more and more units, HOW MANY EXCEPTIONS can you manage?  Worst case with say 30 units, you could get a payment due EVERY DAY of the month and need to determine, "is this payment on time or late?"

I don't mind doing the accounting the first week of each month but I'll be danged if I'm doing this every day!!!

Are you the MANAGER or the SERVANT?

[James Myers]

Thanks for the help guys. Sorry for the delay on my appreciation.

[Thomas S.]

I would not do it but if you only have one property why not. If you do remember you are doing him a favour and make it clear he is never under any circumstances to pay past midnight on the 15th. If he does you serve the pay or quit notice on the 16th. If it happens a second time evict.

I suggest you have him agree to sign a new M2M lease to allow you to get rid of him easy if you need to.

[Roger S.]

We had a new tenant that is on SS with her kids.   Her check comes in the middle of the month.   After a couple of months she came to us and said she was having trouble paying on the first.  We drew up a new lease and set her date for the 15th.   She was able to pay the extra half month up front.  She had tears in her eyes of relief.

[David D Painter]

I have a tenant who needs to pay on the 10th. I just wrote up her lease with payments due on the first, late fee on the 11th. It's worked well for us for 5 years. 

[Fred Winer]

The best advertising is word of mouth.Letting a tenant pay the 15th-15th would be just fine with me those stay forever........