Weekly Rent Payments

Suggest you get the ones onboard who are willing or for whom weekly rent really suits, before offering incentives.

The Residential Tenancies Act states that rent must be in advance at all times, but you can't default a tenant on rent until the sun sets on an unpaid day.

Also, they can pay you anyway they want, weekly, daily, fortnightly or every 13.5 days if they want, as long as there are no arrears, they have satisfied the Act.

However,, you can make set arrangements before starting a tenancy as part of your agreement, but remember some landlord wishes are not enforceable.

Cheers

thecrest

They would probably prefer to make payments in line with their own pay cycle – will make things easier for their own budgetting. Worth the question tough.

I agree with Jamie.  There is no need to discount your product. 

Remember that your rental yield dictates serviceability of subsequent loans (and as such how much you can borrow).  Also, depending on the kind of building it is, the rental yield can dictate valuation and thus equity.

When interest rates were hovering between 6.5 and 7%, the bank serviceability rule seemed to go like this:

A $12 rental hike enables you to go and borrow another $7800.  The equation went like this:

$12 x 0.08 / 52 = $7800.

Doesn't sound like much but when you have a few IPs it all adds up to a substantial amount.

Then depending on the building type (eg commercial building, or residential unit block) your valuation can be tied to yield on the 6.5% rule.  eg:

$12 x 52 / 0.065 = $9600.  So in essence by putting the rent up $12 you manufacture $9600 of capital growth.  Or conversely, put the rent down and you have negative growth.

Bet you don't feel like offering discounts now hey!

Have you actually worked out how much you will be saving? If you give a discount I think nothing.

So you get $500? a week early so you will be $500 ahead each week so you are saving $500 x 6%pa = $30???? WOOOHOOOO!!!!