REntal Payment Automatic Withdrawal, Should I Give A Discount?
Just wondering if any of you think I should give a rental discount if the tenants use payment with automatic withdrawal just to get more of them to use it. I have to pay 15.00 for the first transaction per month and then any additional transactions I have to pay 0.33 cents. So would any of you recommend like giving a 5.00 discount on their rent if they use automatic payment? Any ideas are helpful. Thanks.
Which service do you use for automatic withdrawal? A discount certainly makes sense if know your tenants may have tendency to not pay ontime. After all, it also means that you will have money at your disposal sooner(no need to go to collect rent checks and/or wait for them in the mail...
I go through Reliafund.
I, too, have been thinking about doing this with my tenants. I have thought about increasing the rent 5% at renewal time, and then offering a 5% discount if they arrange for auto-payment of their rent...that way, they would be motivated to do it and not feel the increase.
Of course, it is subject to fees, etc., but at least the cash flows would be more reliable...a constant problem in some of my rentals.[ Edited by glieberman on Date 11/03/2004 ]