Nice to be here. Question for the group...
Nice to be among so many successful property owners! I have a question regarding a new tenant. I recently purchased a property with an existing tenant. They have a current lease which does not expire until next year. I have every intent of honoring this lease, but need to set up the new payment arrangement. Obviously, that aspect of the lease will change. My question is, do I have the right to require them to pay me through my preferred method of receiving payments? I currently use Rentredi for my other units, and it will require the new tenant to download an app.
Anyone else come across this?
Since you are taking over an existing lease (contract), you need to follow that lease. Regardless of what is written in the lease, if the prior owner accepted a mailed check, you must accept a mailed check. Nothing says you can't ask the tenant to pay a new way.
Barring any local law that says otherwise, you can change this at renewal and require Rentredi. Keep in mind, many places have laws that list ways you must accept rent payments. Your preferred way might be Rentredi, but the law may allow 20 other ways to pay.
Quote from @Wiley Hood:
If the written lease says they can pay you in chickens, then you have to honor it. If it doesn't address method of payment, then it's up for interpretation.
Try to make it as easy as possible for them to ensure you get your money. Come up with more restrictive rules with the new tenant or at lease renewal.
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I'm just wondering why don't you just ask the tenant if they're willing to switch the mode of payment ? it's so simple to ask ...
I really appreciate the feedback. I've opted to honor the previous lease and let them pay the same way. However, I think I'm going to approach them about the chicken thing.
Quote from @Carlos Ptriawan:
I'm just wondering why don't you just ask the tenant if they're willing to switch the mode of payment ? it's so simple to ask ...
You're right.
Quote from @Nathan Gesner:
Quote from @Wiley Hood:
If the written lease says they can pay you in chickens, then you have to honor it. If it doesn't address method of payment, then it's up for interpretation.
Try to make it as easy as possible for them to ensure you get your money. Come up with more restrictive rules with the new tenant or at lease renewal.
Love the chicken approach! Actually, I am having them pay in the same manner as the last lease.