@Al Williamson -- I understand what you are implying by suggesting there would be an extra payment made each year, but that's assuming that the tenant is required to pay 25% of the rent each week. Similar to how paying half your mortgage twice a month (semi-monthly) means you make 13 mortgage payments over the course of a year. A great way to pay down your mortgage faster if that's your goal. For example:
If rent is $1000/mo -- the tenant will pay $12,000/year
If rent payments pulled from their paycheck are 25% of that monthly amount, it would mean they pay $250 every Friday (let's assume that is payday).
In this scenario -- they will make 52 payments of $250 a year, or a total of $13,000 (one extra rent payment).
But, the implication of doing that seems rather unethical to me, unless you are letting them know you up front you are penalizing them for paying rent in that fashion. Otherwise, it just seems that it would be taking advantage of someone's lack of understanding of the math behind that scenario. Instead, the weekly rent payment should be based on the $12,000 a year, divided by 52 weeks, for a weekly amount of $230.77 (not $250).
Just my two cents.
@Heidi Dunn -- I appreciate your question because it's interesting to me, as a future landlord, to hear of some different scenarios around how tenants want to pay. My initial thought was that it is awesome you have a tenant who wants to go ahead and pay rent right out of their paycheck, as it would seem to me to be a huge plus. I didn't think of some of the concerns that have been addressed by some of the BP community -- that's a big part of why I have been so pleased with BP! Best of luck to you either way -- keep us posted on that happens! :)
