Tenant Rnet Pay Incentive Idea
Has anyone tried anything like this?
I'm thinking that as an incentive to tenants to pay on time I would offer a $25 per month credit towards the end of the areement and add $2 per month to the credit each month if rent is paid on time. In other words they pay full rent per month but I put $25 for month 1, $27 for month 2, $29 for month three etc. in a "kitty" that the tenant can "call in" anytime after 6 months. If they call it in then it starts over at $25. It caps at $49 a month after one year and ****Must Reach Senior Investor status before posting URL's*** If they never call in the credit they will be entitled to the full amount when they decide to move on if they have qualified for their full security deposit refund. Just thought I would get creative and ive it a try.[ Edited by mbarikmo on Date 11/07/2003 ]
Sounds like a lot of money! Is it really worth that much to you for them to pay on time? There are two basic ways that seem to work for me. One is, I simply let the tenant know up front that it is my standard procedure to file papers for eviction as soon as they are 5 days late. I explain that I simply do this because of the length of time it takes to get that rare bad apple moved out. They seem to understand and aren't offended if I explain this up front. I must admit though that I have gotten slack on this as time goes by(or I get older). Now I simply don't seem to fret much about late payments unless it is getting near the end of the month. After all, I have one tenant who has paid late every month for 8 years I believe. At the end of the year though, I still have the same amount of money in my account that I would have if she had paid early. Ok, maybe I miss out on a dollar or two of interest!
I would suggest direct deposit into one of your accounts.
Don't give tenants your account numbers. Instead, put them on an automatic debit program where you tap their checking account each month.
I giveth and I taketh. Example: Rent is $1200/mo if paid on the 6th (or later)of the month.
IF rent is paid during the first five days there's a (say) $200 discount. and the resident only pays $1000.