I have not filed rent notice or eviction in 5 years of land lording. I spent about 10 hour maximum per month to manage my properties. The 1st is the latest I’ve ever received payment. Many close friends of mine have asked me how.
I learned that people can be motivated by either making money or saving money, especially if it is easy. Considering I have little time for property management I developed a system that needs minimum time and effort. And frankly, it is quiet simple.
Basing this on a desired rent of $795 monthly:
1. Tenants are give a discount for rent paid by the 25th of the month, $795
2. $895 is due if they pay between the 1st and 5th.
3.If rent is not paid by the 5th, eviction process begins.
Here is the advantage:
1. Tenant tries to pay by 1st to save $100.
2. You earn $100 if tenant pays between 1st and 5th.
3. If they were late, you file rent notice for $895 (plus late fee, etc).
4. Lenders counts the rent income as $895 (good for refinancing).
It works really well for me and my tenants. A couple times my tenants had missed on the 25th but they all chased me down and paid by the 1st. Not terrible. Of course, the rule of thumb is to screen well to avoid lots of non-sence and hassle. I hope you can benefit from this.
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