To get to the bottom line, you must start at the top

Setting the Facts Straight

According to the Rent Bureau, renters with one prior debt have a default rate 4x higher than renters with no default

Should you give your tenant an extension (e.g. 10 days on $3,000 of rent)?

• If your tenant asked for a 10 day, $3,000 loan, would you write the check?
• If yes, then maybe you are ok with the extension
• If no, then reconsider the precedent it sets

Collecting Rent

Not my preferred methods:

• Cash — prone to theft, difficult to track
• Personal checks — can bounce, must manually track
• Direct deposit — you have to give your account & routing # to tenants, tenants choose how much and when to pay (difficult when late fees & evictions are involved)
• Paypal — difficult to automate monthly, clawback (Paypal takes tenants’ side), irregular fees if tenant selects wrong option (pay via credit, not friends and family, etc.)

My preferred methods:

• Money order — not likely to bounce, difficult to cancel (although many have limits)
• Online rent collection — easy to track, auto-pay to reduce late payments