Does anybody collect rent from their tenants in advance? For example, The tenant pays $200 on the 10th of the month, and that is their rent for the 10th-17th.
To me it seems to be a good deal for the owner, the rent can help reduce interest on the loan, time for a tenant living in a place without paying rent is noticed quickly.
If it is a good deal for owners, do you offer discounted rent if paid in advance?Scott
Japanscott,
I would say all landlords work on rent in advance. Every place we have rented has been rent in advance. I certainly wouldn’t want rent in arrears if I was a land lord as you may never get the final payment when the tenants leave!WE have never been offered discount… I wish I was… oh well. Have you not rented a house off someone before?
Steph.Work smarter, not harder!.
Looking at it as a renter
On many an occasion I have recieved discounts by offering rent in advance – often 13 months ahead. It is easier to justify the discount if you present a spreadsheet with their “savings” eg interest, bank charges, vacancy factor is zero. Easier on commercial than residental
Normally have got 9% or nothing!
Thanks for the replies in the wee hours.
Last time I was renting was from a friends father, it was a pretty sweet deal for me. I was living with my friend in the property, but he married and moved to Canberra. I had the place to myself for the same rent. Also, as I was a university student, he was pretty flexible on payments, so I was usually paying after the rented time.
In Japan I pay a month in advance, which is not so bad after the first month. Just curious as to how much in advance people might ask/accept to have discount on rent.
Scott
I never thought to ask but it’s a good question…
a good idea.
BTW are you JApanese or Australian or a Japenese Australian? I don’t know what accent to read your posts in… I am a kiwi.Hi Japan
(the other Cremin here), sounds like you already have a rental under your belt, so heres a tip if you’re a landlord. Always charge rent fortnightly, alternitively if you are paying off your mortgage always pay the bank fortnightly. You may already know this, but anyway heres the figures.
1yr = 12 mths
annual rent = rent x 12
or
1yr = 52 weeks (divide by 2) = 26 fortnights
26 ftn (divide by 2) = 13 mths
WOO HOO! an extra 1 months rent coming in every year.
When paying off a typical P+I loan this will take years off the loan term not to mention the interest.
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][][]Work smarter, not harder!.
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