The Way Things Work With Rentals
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Personal Note from AIG:
Overkill? I think not. I owe a debt of gratitude to my buddy (and fellow local landlord) Chris Wark for turning me onto this one.
I won’t go into the finer points of the “rent discount program” but read through the document below and you’ll start to see the light. The long and short of it is that if I want $500/mo in actual rent, I’ll put the rent at $550, and offer a $50 “discount” for timely/early payment. If they don’t pay on time, they lose their “Discount” (i.e. NOT a late fee, and not subject to local laws on late fees). This is a HUGE motivator.
Then I also add a late fee ON TOP OF the discount loss. Powerful! If the tenant balks at it at all, I remind them of the how cool it is that we have a “discount program” like this that others don’t offer, and then ask them if they have any reason to feel they might NOT be the kind of people who will keep their discount each month.
Also, I read this entire document to the OUT LOUD and we chuckle a little together through some of it. But we part ways with crystal clarity on some of the finer, but important points expressed below.
Study this…and use it. Trust me. It works.