Lou brown rent DUE on 25th??

Question

Any one ever listen to Lou Brown audio. I found a clip where he basically says everything I have learned on here about taking control of the first phone call with a potential tenant asking questions about stable job, credit score, etc. He also claims he makes rent due on the 25th as opposed to the first? Is that something you have had success with? He says it trains the tenant to pay him first before the other bills are due which is interesting and also he will tact on late fees the day after. He is also in Georgia and can have people evicted within a month as opposed to CT laws which takes longer than that. thank you

J Scott · Answer

I personally hate the idea of asking tenants to pay rent on the 25th.  If anything, it sounds like a stupid gimmick developed by someone who wants to come across as a guru...

Most blue-collar salaried jobs (the majority of renters, I would presume) pay at the end of the month, and most of these tenants probably don't keep much in cash reserves (if they did, there would be more chance they'd own a house).  So, asking them to pay in advance of the end of the month, and then tacking on late fees if they can't just seems like a way to take advantage of them and to create tenant/landlord issues where there don't have to be any.

Why would any landlord create a reason for the tenant to be less likely to pay on time?  This seems counterproductive from all aspects of the relationship, and the more time a landlord has to spend dealing with these types of issues, the less money he makes (time is money).

Just my $.02...

Ann Bellamy · Answer

We pro rate.  In this area, there is no hard and fast rule about moving in and out on a specific date.  We don't have much of an issue, people stay til the date they are ready to move out and pay per diem for when they are there.  And if they move in on an odd date, we charge a full month, from say the 10th to the 9th.  Then the next payment is the 10th to the 24th, and then the next payment is the 25th to the 24th.  Not an issue.

I almost never have a vacancy for more than 2 weeks, and that includes time to paint and repair.  Sometimes I have someone waiting to move in the day after the old tenant moves out.

It's just not an issue.  I don't have to line up with any management company or big complex. Maybe it is what is customary in an area.  In New England, there are a lot of small apartment buildings, and not a lot of complexes.

John, I didn't mean to hijack your post, but I'm hoping this information is helpful to you.

Jeffrey K. · Answer

How do you turn over units when you dont line up with the dates of any professional management company?  The only way your tenant could move to another reantal is to find one that has been vacant and will let them move in early.  These units are usually not as nice as units that are never out of service.

Ann Bellamy · Answer

Ok, here is the opposite view:
I have been collecting rent on the 25th for years.  The reason is not the same as Lou Brown's - My mortgages are due on the 1st, so in order for me to deposit the rents and have them clear the bank, I make the rents due on the 25th.  And just to be clear, my rental period goes from the 25th to the 24th of the month, and all my leases are done that way.  I carefully explain to each new tenant how it works and why.  Once they have adapted the first month, I almost never have a problem.

It seems to me that the people who have a problem, (who are very few, by the way) are the same people who would have a problem no matter when the rent was due, because they can't plan ahead.  They are also the same people who buy a new giant tv but can't pay the rent, or a new souped up Mustang just before they lose their job.  They are the same ones who party at 2AM and light up the gas grill on the wooden deck right next to the vinyl siding.

So you have to make your own decision.  I will say, however, that most of my tenants are paid weekly or biweekly, so that may be a difference.

I have made other arrangements occasionally for the elderly living on a social security check.

James Vermillion · Answer

This sounds like a path to a high vacancy rate!  Sure you might make some extra money on late fees, but you will have some very unhappy tenants.  If you screen properly and fairly price your rents you should not have too many issues with your tenants not paying rent on time.  I would stick to the basics and stay away from this gimmick.  It reminds me of something a credit card company focusing on people with poor credit would do.

Lou brown rent DUE on 25th??

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