Rent discounts and late fees

[John Woodrich]

I am purchasing a property with tenants in place.  Most of them are on month-to-month arrangements and have dinosaur lease agreements so I plan to renew with my lease agreement.  One thing I was conisering doing was upping their rent and offering a rent discount for payments on time.  Then a late fee for payment after the 5th.  I think this would give them more reason to pay on time, if it becomes an issue.

For example, let's say current rent is $700, my new lease would provide that rent is increased to $750 however they get a $50 discount if rent is paid by the 1st.  If payment is not received by the 5th a late penalty will apply.

Does anyone see any issue with this?  Not that it should matter but the place is under market rent right now and would still be at $750.  I plan to solve the rent issue at some point but I don't want to come in an bully anyone around.