Rent due 1st and 15th??

[Preston Quinn]

What’s up BP.

So I have decided to take one of my properties and manage it myself. I have a PM for the rest of my properties.

I have one applicant that meets all my screening criteria. Listed below

Income 3x rent (3.7 is where this applicant is)

Credit score of 600 or better (629 score)

Employed with same employer for 12 months (14 months)

No evictions (none)

No felonies (none)

No judgements (none)

I was talking to the tenant and they mentioned being able to pay the first or the fifteenth as his job pays on that schedule. And I thought why not allow this happen. Half on the first and half on the 15th.

Has anyone tried this? How did you word it in the lease? I would still want to charge a late fee after 5 days late.

Thanks

[Will Fraser]

Hi @Preston Quinn!  I do this on one of my properties that tends to attract bi-weekly earners.  IF you know about it on the front-end you can often bill a premium for this (for example, the property I'm thinking of rents for $650/month or $398 bi-weekly -- good for them good for me).

In general it's a good idea to break the rent up in your lease agreement as "$X due on the 1st and $X due on the 15th" and hav a late fee associated with both (i.e. due on the first, late on the 5th then due on the fifteenth and late on the twentieth) to add clarity.

Otherwise you could make the full monthly rent Due on the 1st Late on the 20th, but I tend to like the biweekly "due" rhythm for the tenants sake, because it reduces the tendency to have a "really important thing" come up that sucks up the other half of the rent for that month (you know, one of those things that is more important than housing?"