(First time Investors) What would you do

[Michael Gardner]

Hello BP community, we have just purchased our first rental and already have to make some quick decisions but unsure which direction to go on a couple things 

1. The last owner utilized a property management company and tenant says for the past 10 years they have paid half of their rent on the 1st and the other half on the 15th. I know after reading Brandon's book on managing rental properties that this is not good practice. Now they want to know if they can do the same with us. Should we stay firm and tell them it states in the current in place lease agreement you signed that rent is due on the 1st, maybe let them continue until the end of their year since we have to abide by the current lease of the previous property management company for at least that long or what would you all suggest?

Oh yes and things are breaking before rent is due so I feel like we're being hazed,Lol. Refrigerator supposedly not getting cool enough and freezer is over working. They say the have to put their refrigerator food in a cooler for now. I have maintenance scheduled but I feel this may be a set upto try and ask for a discount on rent or for us to pay for groceries. If that happens what do you suggest BP. 

Lastly, we set up an online payment portal and sent a welcome letter and instructions. Also we sent the same information via email. Today their asking how do we pay rent🤔. Let's say they can't pay using the portal which has two methods ACH or Debit payment, anyone have any other payment suggestions besides check or money order which could both "get lost in the mail"?

We would appreciate any and all suggestions for us newbies. 

[Nathan Gesner]

Welcome to BiggerPockets and congratulations on your first purchase and post!

1. Don't believe the tenant. Follow what is written in the lease. If it says rent is due "on or before the first day of each month" then that is what you enforce. If it doesn't specifically say, then talk to the previous owner and/or management company to confirm what they permitted. If they allowed two payments a month, you may be stuck with that until the lease expires.

2. Do not offer a discount for a broken fridge. You just bought the place, so it's obviously not your fault. Even if you owned it for six years, you're not at fault for an appliance breaking. Nobody compensates you when your fridge breaks in your home, so the Tenant isn't any different. They need to take personal responsibility for their belongings.

3. This shows why I wouldn't trust #1.

These tenants are probably paying below market and they already have a few red flags. I would keep a close eye on them and get rid of them as soon as you legally can.