Southwest, AK · Member since 2013 · 21 posts · 3 votes
Hello all, I've searched the forums on this topic but can't find it. We are newbie landlords going on 3 months now. We have a planned trip during the first week of March - can we ask our tenants to pay rent early? How much notice would they need? If they can pay during the last week of February that would be ideal. Otherwise we don't have a way of collecting.
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
I don't think you can ask them to pay early and Frankly I don't see that being fair to them. Most people who rent are on tight budgets. I know I couldn't pay early. What I would suggest is having them write you a personal check and cashing it when rent is traditionally due. So you can be out of town and get paid as well.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
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Electronic payment methods exist so that you don't have to be there to get paid. You should explore those options; there are numerous threads already on BP that discuss this and the variety of services that offer to do this.
Real Estate Broker · Hollywood, FL · Member since 2014 · 34 posts · 6 votes
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Martha T. a Good morning. I have to agree with Ryan D. I don't think is fair with the tenant without even mentioning that it will be difficult to enforce since I am sure you have guys have a contract or some type of written agreement. What we starting doing not long ago was offering the option to our tenants to pay online... Go to this website www.paysimple.com and see if that is something that may work for you. I don't really handle the day to day operations for our property management division (my wife is). Best of luck
Rental Property Investor · Midland, TX · Member since 2014 · 76 posts · 6 votes
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@Martha T. I checked with bank and they said that having my account number in no way puts me at risk for tenants getting to my money. All my tenants can only pay by 1. deposit at teller( we have smaller town and four locations. So it is very easy for them to do this) 2. direct deposit from work 3. Transfer from there bank or 4. direct bill pay from there bank. One word of warning. My Credit Union said if they transfer money from an account from their account at my credit union to my account it give them assess to withdrawing money from my account, so before doing this go talk to your bank or credit union. This payment method is in the lease. Also in the lease if they are going to pay after eviction has been filed they have to have written permission. This way if I am going to go all the way with a conviction to get rid of them they can't make partial payment or whole payment. It says in lease I will only cancel an eviction one time. I also empty the account after rent are in. I can check online from anywhere the night of the 1st and see who has paid. Good luck
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
11y
I don't see any harm in asking your tenants to pay early, IF you give them some kind of incentive. Like $50 off the rent, just for that month. And just as an option, not a requirement. Depending on people's pay schedules, some might be able to swing it.
Of course the down side is, some people might take this as a precedent and push for this discount all the time.
However, if an incentive is not something you are willing to do, it would not be appropriate to request an early rent payment. During my renting days, if my landlady had done that, I would have been annoyed by the request and ignored it.
Southwest, AK · Member since 2013 · 21 posts · 3 votes
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Thank you all again for your input. I realized I may have not been clear on my question. I meant to say asking them to "pay early" as in post-dating checks for March, or such arrangements. I will look into other options for accepting payments.
@Michael Herr - my question may be idiotic to you now that you must be a seasoned landlord. I'm sure when you started out you must have appreciated advice from other landlords, possibly someone said your questions were idiotic at some point. I don't think it's necessary to respond to newbie posts with such a condescending tone. I'm not here to battle wits or make anyone feel stupid. I just asked a question. Have a good day.
First, my language was overly strong, and for that I apologize.
Second, I think you might have misunderstood what I referred to as idiotic. Asking the question here on BP was a good idea and you should continue to do that. I was meaning that if you went through with asking the tenants for rent early anyway, then that would be idiotic.
Investor · Jacksonville, FL · Member since 2014 · 172 posts · 73 votes
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Restating your question added clarity to the interpretation of your question. As a new investor myself, I am opened eye and ear for constructive criticism and guidance.
I think it was the verbage of your initial question that Michael responded to with a technically accurate remark. "Idiotic request" is not an insult.
Webster defines "idiot" as someone who acts in a self-defeating or significantly counterproductive way. Asking for rent one week early would certainly be self defeating and significantly counterproductive. If you continued to ask for rent early, you wouldn't have renters longterm, therefor counterproductive. I think we all know now what you were TRYING to ask. But, that is not what you posted initially.
Contractor · Round Rock, TX · Member since 2013 · 767 posts · 389 votes
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If you're not there to deposit the check, what good is post dating it? Neither of my banks will take a check more than 1 day in advance of when they are written. You would have to wait until you got back to deposit it, so in essence it's the same as just waiting until you get back to receive it. If the money is that crucial, just postpone your trip for one week so you can collect your rent. If you are going to ask for it early, you need to give a little and give them a rent reduction for the month.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
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in my experience you can't require more of the your tenant than your lease requires. So in this case I would say no! I have a strick lease as it's easier to become lenient than more strict.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
I suppose that if you have a friendly relationship and they offer to pay you ahead of time after you bring up the subject saying, "gosh, we don't have anyway to collect our rents since we will be gone" that might be fine.
Sending a "NOTICE" of what, notice you're a poor planner, a poor administrator to set up your affairs to conduct business before you go play?
I haven't read the other posts, I'm afraid to. Edited, I read them, so I toned this one down.
Do you know anything about collection practices? Does your utility company give you a notice to pay your bill early because they will be closed for a holiday the day it's due?
Does you lender send you a notice to pay early?
Does ANYONE in business send you a notice to pay your obligation early?
NO!!!!!!!!!!!!!!
Now, if you offer to knock off $50 if they pay early, you can avoid making unreasonable and harassing payment demands.
Get your business affairs in line before you take off and go play, get a friend or neighbor to pick up your mail, give your bank a note or power of attorney for deposits that they can arrange for someone to deposit checks for you in you absence, pay them if you don't have family, friends or neighbors willing to cover for you.
Your going on vacation is your problem, not your tenant's problem, maybe you think nothing of putting others out to make your life easier for you, time to mature and become business-like. And No, post dated checks are not acceptable.
Residential Real Estate Agent · Columbus, OH · Member since 2013 · 281 posts · 110 votes
11y
There are many forms of electronic payments that can protect your accounts. One of my tenants uses Chase quickpay which I really like. The tenant never see's my account number and I don't see theirs. They set up a payment, it notifies me by email to go accept it online and it's in my account within 24 hours.
BTW Lee R. whoever told you giving your account number doesn't put you at risk is very loose with their information. Any time someone knows your name, banking institution and account number they can create fake checks. This is highly illegal and most people wouldn't do this, but isn't that what you're worried about to begin with? I think your bank is referring to the fact they wouldn't be able to access your account directly at your bank...but most criminals aren't going to do that they're going to pass bad checks or sell your information to someone that will.
With all this being said...i'm hoping you've screened your tenants enough that you shouldn't worry too much about this, but once is too many times :)
Southwest, AK · Member since 2013 · 21 posts · 3 votes
11y
Thanks all for taking the time to respond. I seemed to have a struck a nerve here and incited a couple of diatribes. There was no mention of a vacation. Anyway, onward with the learning process for me.
Thanks all for taking the time to respond. I seemed to have a struck a nerve here and incited a couple of diatribes. There was no mention of a vacation. Anyway, onward with the learning process for me.
In your original post you commented you had a planned trip the first week of March. Its a matter of semantics what you want to call it. You are going out of town for an extended time. If it were simply an overnight or 2 night trip. Not an official vacation. I wouldn't think it would be that big of a deal to wait that time for your rent. I think the issue was that you sounded very self centered and entitled that your tenants should have to pay rent early as not to inconvenience you when you were the one that chose to create the issue.
Investor · Maui, HI · Member since 2012 · 232 posts · 96 votes
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Martha T.
For some of my properties I mail the tenants a bill every month on the 17th and include an instruction on how to pay rent. I have a wells fargo checking account and I provide them with the account number on every statement. They would go into any wf branch and deposit their payment with a teller before the 3rd. I see the deposit instantaneously online. I do empty the account by the fifth. No work is required on my end. Method copied from all the bills I receive. I believe a landlording business needs to be ran like a official business. I also don't befriend my tenants. I am friendly but never become too personal and too flexible. And I expect the same from my tenants. Good luck!
Rental Property Investor · Reno, NV · Member since 2013 · 77 posts · 31 votes
11y
I have a savings account set up for my tenants to deposit the rent into. As soon as I see the rent hit the account I transfer it to a checking account. Works very well and I don't have to worry about collecting rent or checking the mail. I can make the transfer from my smartphone or tablet no matter where I am at.