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Category: Business Strategies Current Grade: A Total Views: 3201 Member Comments: 10 |
Posted on: 02/03/2007 Posted by: crystalwillett Blog Points: 5079 View all blogs >> |
I wonder if you landlords have any tricks up your sleeve to get your renters to pay on time!?
I came up with something I'm trying with my renters and my lease option people and it is starting to work.
Here's how it works:
Every month I put the names of my renters/lease option WHO pay their rent on time, in a hat for a drawing. I started in Jan 07 and the winner got a $5.00 gift certificate. Each month it increases $5.00 for the next 2 years.
January had ONE renter on time. (Christmas always does that)That person got the $5.00 . This month, the winner gets $10.00. I had three pay on time! I am expecting more to "catch on " in March when I mail out my little newsletter and include the names of the winners. This cost me less than chasing rent and evicting, etc. and it's a lot of fun to hand out the certificates!
On time means, it has to be in my hands ON the due date or before.
Let me know what you think about this and/or what YOU do to get your rent on time! (oh, and please grade me... trying to rack up some points here to catch up with the big dogs in here!)
I have a follow up on something we did a 4 - 5 months ago that has worked out great for us. We had a tenant who always paid late, and I mean ALWAYS! We liked them and didn't want to upset them but enough was enough. We finally figured it would be better to start fresh with a new tenant who would pay the rents on time. So for two months straight, we sent them a 14-Day Notice to Quit and surrender the premises. Amazingly they found the rent money and sent it out (late, but we got it). Then I proceded to send them a letter explaining the policies at the building, that they already were at a discounted rent based on http://www.rentslicer.com/ and futher informed them it was out intention to have a tenant in that unit who paid rents ion time. We never really came right out and said that we were fed up and wanted a new tenant, but the letter worked. No more notices, no more late rents. In FACT, for the past two months the tenant has called us from the Post Office to let us know exactly when the check was being mailed, the amount, and when we could expect receiving it. They don't really want to lose their apartment either. It's a georgous 3 - BR Victorian. Problem solved.
1. Join a local landlord association
2. Pre-screen your tenants
3. Pre-screen your tenants (not a typo)
4. Pre-screen your tenants (still not a typo)
5. Write a rental lease WITH A SOLID TERMINATION CLAUSE
We do the best we can to screen to get the right tenants. BTY, did you know if they default a lease option contract they DEFAULT ALL DEPOSITS? So the worst case is you get replace with a good tenant, keep the deposits (or what you deem reasonable). And do the process all over again.
You should also know the bullet points for evictions in your county. Hooking up with local landlords in a club is your best bet BEFORE the problems start.
Now all this being said. treat your good tenants like gold. They pay your bills, provide cash flow, and a secure retire fund for the future. I know a property manager who has been doing this 17 years and she does the same thing. She awards one prize per month, AND sends a letter to let everyone else know who won that month. The contest is a great incentive to motivate folks to "win the lottery" by paying the rent on time. After all, it's their money the prize comes from. Maybe you just award a gift certificate to Home Depot, or a cleaning service, or a new "something" that the tenant will use to keep your place looking good. You want to be friendly, but not friends.
Hope this helps.
Brian Lucier
I never did this plan. I figured the same thing. In 2 years, that is a lot of money. So, it was creative, but I don't have enough cash to give away. Anyway, it would be a better idea if I kept it 5-10 bucks a month.
Awesome idea...