weekly payments lease vs monthly

19 Replies

Hi Every

  Just a quick question does anyone set-up their renters on a one year lease where they pay weekly instead of monthly. I'm looking at a property where they have done this and they told me they make more that way than collecting monthly. I did the numbers and they are correct but I haven't seen this before so not sure if a landlord can do this.

I have seen this in cities that have Single Room Occupancy (SRO) properties. These are usually single rooms that are rented out by the week. Weekly rent gives you an extra month of rent payments but I have not seen regular multi-family doing this.

I offer my tenants the option of choosing a weekly, bi-weekly or monthly payment schedule.  I don't charge extra based on payment schedule... overall rent works out the same on an annual basis.  Some of my tenants find it easier to manage their finances if rent is collected on the date they get paid.  I use an ACH payment service to setup the schedules and collect payment.  The process is totally automated and surprisingly cost effective.

I agree a lot more to keep up with but this is the second one I have seen this week while I'm making offers on these units one is a triplex and the other is a quad owned by different people. It is about 2000 a year difference in rent on one and a little over 3000 on the other another they have been doing this for years from what they are telling me.

The way they have it set up is every Friday they make a payment which five months have an extra Friday so little over a month extra in rent. Doesn't seem right but do I change it most tenants have been doing this for more than a year now two of the for 3 years now. 

When you charge by the week (as opposed to a weekly payment schedule based on a monthly rent) the dynamics are different... beginning to feel like a rooming house.  The whole concept of prepaid rent and notice for termination get a little murkier.  I am also wondering whether utilities can be in tenant's name under that arrangement.  You should also check to see how lease reads, I suspect that may answer a lot of questions.

The lease is very basic I have to pay the electric they cover the rest each unit has a meter so not sure why I pay the electric but the cash flow is over 900 a month this way and they seem to be happy with they way it is.

I saw a lot of this in Nashville, payments in cash every week.

Not my  cup of tea and it lead me to all kinds of speculation as to why, but didn't stick around to find out.

ClearNow offers a every other Tuesday auto draft. That's the way I do it.

Since you get more partial payment this way, you should end up with an 13 equivalent rent payments - which is > 12.

@David P.

We have had a couple of tenants who were on a monthly rental period, but who would deposit a portion of their rent bi-weekly (on each payday) as they did not trust themselves to hold it until the first of the month (ok ... one did not trust her husband).  We gave them each a deposit-only bank card and told them we didn't care if they made weekly or bi-weekly deposits provided the full amount was there by the first of the month.

This is a different thing than renting on a week-to-week basis, which here is treated differently in the tenancy legislation.

There are different laws regarding daily, weekly, monthly and 1 year lease/rental agreements. 

I set up all my leases on either a monthly or yearly. I keep my worst rental properties on a monthly basis, soley on the idea that evictions are much more likely. 

To my knowledge there are no legal advantages to renting weekly as opposed to  monthl (someone correct me if I'm wrong). But there's too much work involved doing weekly payments than it's worth. 

Also, the lease is one year so you negate the ability to get easier evictions, yet you still deal with weekly rent checks. 

The question is when can you give a 3 day notice of default? Is after they miss the first weekly payment or do you have to wait till the end of the month? Some states weekly rents would be under innkeeper laws and would be all together different set of rules. 

Originally posted by @Michael Noto :

Can a landlord collect rents weekly? Sure. There is no rule against it. 

Where we operate, if the rental period is week-to-week, then naturally you can collect rents weekly.  If it is month-to-month you collect monthly, but that does not prevent the tenant from paying in advance for the next rental period, not paying in instalments, so long as their rent is paid in full by the first of the next rental period.

Well after talking to some property management companies in the area they told me this happens a lot to them taking over from a owner that does their own management. What they do is let the renter pay weekly because the lease is already signed and as long as it is all collected by Monday they are not late. Since it is a  year lease like mine are at the end of the lease they will give them a new that matches the amount they are paying now and make it monthly. It is the tenants I have they get paid weekly and some can't handle there money to make it to the end of the month hopefully we can do the rehab I want and move to a better client the area is a good C my place is the worst on the block that is why I got it so cheap.

i charge weekly and feel the extra record keeping is well worth the extra income. Plus it coincides with their paydays, so its easier for them to pay, rather than saving up for a monthly rent payment. 

Daniel Klebba I use a service called Paysimple.  I pay a fixed fee of about $40 per month and a usage fee based on the number of transactions.  Last month I processed 23 transactions and the usage fee was approximately $15.  My total cost is between $50 - $60, depending on the number of transactions.  

Setting up the service was a hassle... they vet your business thoroughly.  Aside from setup, my experience has been very positive.