Discount rent

[Dale Lookabaugh]

I read "Building Wealth One House at a Time" by John schaub. In the book he mentions he will discount a tentants monthly rent if they pay before thier due date. Has anyone used this method? If so what process do you use? Do you send the tenant a letter telling them to pay X amount this month? I'm curious to see if it's worth it.

[Bryan Hancock]

I haven't read the book and I don't use the technique, but I am guessing that the "early" rent is really market value and the late rent is higher than market value. This is a psychological thing where people think they are getting a discount for what they are supposed to do instead of a penalty for not doing what they are supposed to do.