hi all
what are some incentives to get my tenants paying on time .some advice would be appreciated.cheers.Hi Beerboy, The Richdad series of info suggested some of the following: occasional movie tickets, early/punctual rental payment discount as opposed to late payment penalty, instal bathroom heater (or other things) to justify small rental increase, use what you have access to at discount prices e.g if you know a car detailer, maybe you can strike up a deal for your tenants with the detailer etc
thanks uran
the tenant is the key to a successful investment/business im sure more people on this forum can get the creative juices flowing on tenant incentives.
early payment with $10 reduction sounds o.k .
10x$52=520 u could also offer 2 week free rent at the end of each lease agreement.unfortunately $520 could be most of lnvestors profit.this with unexpected maintenance fees can ruin ya little profit.
trying to think outside the box on new incentive ideas.cheeeeers.Yes, beerboy, but with the ‘rent reduction’ you have actually increased the rent by that $10 per week anyway, so you’re happy to get the quoted price less $10. If they don’t pay on time, then you get a bonus when they do pay up.
Cheers
MelIm a bit weary on discount cheaper rent, once one asks they all seem to ask… Discount rent is ok, but it then becomes more of a hassel once they cant keep up with payments or they futher ask more discounts or later dates to make payments.
Cheers,
sisSIS, it’s only a discount in this instance if they pay on time. It’s easier to do that way, than to say there’s a penalty if they are late.
Cheers
MelHi Mel,
Very much agree with you, (Also see that your in the 2 top posters now…. so jealous..[
])Though lets say, if they cant keep up with discount rent, then how do you expect them to keep up, when its time to up the rent again…
Honestly, other incentives like free movie tickets every now and again, are a much better idea, than reducing or discounting rent.
Cheers,
sisI am with SIS on this only because the rent is what we want to acheive, so other incentives need to be taylored to the tenants needs. It will make uping the rent in teh future much more difficult.
One incentive that I thought of today was a subscription to Super Food Ideas Magazine – $25 for twelve months, so every month they receive something from me that is going to help there home lives assuming that most people renting my properties are just your average family and SFI is a great mag for the average family for cheap and easy recipes etc.
Cheers
Leigh K[]Carve your own path and lead the way …
We could keep ‘restating our positions’ on this one, but I’ll just add this:
If the tenant is struggling to pay the rent on time, ALL the time, do you really want this tenant? I would be much happier to have a tenant that happily pays on time to get a ‘discount’ (which is precisely the rent I wanted to achieve in the first place), and who was qualified to be in the property on the basis of the more expensive rent, rather than somebody who struggles to pay.
Although I will admit that with one lot of tenants – that I deal with myself rather than using a PM, I have offered them 2 movie tickets per month if they pay BEFORE the 1st of the month. Sometimes I’ve had the rent a week and a half early!
Cheers
Melthanks for the tips..
Do people wait until their tenants have paid late 1 or 2 times then offer an incentive or do you do this from day one and how do you approach it?
Cheers
Leigh K[]Carve your own path and lead the way …
Hi Leigh,
i dont offer, what i do instead is, offer new fixtures or improvements, but at the same time increase the rent.
i much prefer to give incentives for the property managers i deal with.
Cheers,
sisin my case i have the chance to purchase a p/cflow
property. the property manager said the current tenants
are two weeks behind on their rent but always catch up
with a little pushing.they keep the place clean and seem o.k.on a small wage i cant let the repayments get behind.
so if i take the risk do i offer some incentive to snap them into line.they have just signed new lease too.i have worked out that the profit would be around $2000p/a.i dont think the area will recieve much capital gains. i think vendor is keen to sell so i could offer less than asking price and make a bigger c/flow.??scary for me but exciting too.
b/boy.Leigh, I have done it with new tenants – certainly not as a ‘reward’ for paying on time if they have been late before.
Beerboy, don’t drop the rent to encourage them – if they always do catch up, don’t worry too much. Try to save a little yourself each month, so that you have a backup if they are a little late and you have a payment due. Ask to see the payment history from the PM, so you can work out for yourself just how late they do get etc. That should help to set your mind at rest.
Cheers
MelJust a quick question, how many of you are tenants and do you receive these things.
Erikanever have i been offered any incentives in my ten years of renting. even when i was young and rebellious and always late with the rent.
I was never offered any incentives to pay my rent on time (when I was renting), and so far we have never offered any of our tenants anything to pay their rent on time (over a period of 6 years).
If the property has been chosen well then there shouldn’t really be much trouble getting a tenant who pays on time without incentive.
One of our tenants did, however, leave us a Ford Falcon in the garage when he moved out![:p]
ok guys, i will admit i was a tenant back in college…
at the time i was renting a room for $50 pw, yet the people who i payed rent to, were very nice people, there was times they gave me free rent for doing odd jobs around the place and for some reason they would bring home goodies, to us student tenants.
While the whole time i was there, they never up the rent, only the new students they increased the rent before they moved in. Great guys they were, they looked after the students very well.
Cheers,
sissis- you admit there was a time when you were a renter? hehe- too funny
I am still a renter. And you are too sis- except you don’t pay rent!!! So actually, you’re a squatter!kay henry
OK OK, *deep breath* I admit it too…
“my name is richmond, and I was once a renter”
cheers
r
])
]
I am still a renter. And you are too sis- except you don’t pay rent!!! So actually, you’re a squatter!
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