Should tenants pay more for longer months?

Question

So I've been renting properties for several years now and every time the first of the month approaches I always have to check to see if it's a 30 or a 31 day month to know exactly when I should I be expecting my payment.  But then it occurred to me: since months are different lengths, why do we charge by the month? Doesn't this mean that on longer months, tenants get to spend less per day to live on our properties? Or looked at another way, don't they, on the last day of longer months, get a free day of rent assuming that the monthly rent payment should apply to a 30-day period?

Now I know this might sound like I am trying to nickel-and-dime my tenants, but when you take into account that those days really add up it seems more like the tenants that are getting a free ride. Let's say rent is $1000 a month. 1/30th of a $1000 rent payment is $33, and there are 7 months in a year that have 31 days. Even subtracting for February, that's five extra days a year, or $165 per year that landlords are losing in opportunity cost by charging by the month instead of by the day or by the 7 day week. After six years, that's one entire month's worth of free rent - or a whole security deposit- accrued right under your nose!

I was wondering if anyone had any suggestions on how to maybe try to implement a more equitable and consistent way of charging rent money per time of occupancy. I think the monthly rent system is unfair and obsolete, because 7 months out of the year- more than half- tenants get to pay LESS than what they pay the other five months, per time spent living at the rental property. If somehow we can move to a weekly system being more common, or maybe we can have "high rent months" and "regular rent months" or something like that. The February discount would be a nice treat for families struggling in the winter, and maybe it would even help us remember which months have how many days!

Please tell me what you think of this idea. Thanks.

-Clemence

Patrick M. · Answer

Why don’t you think of it as you getting over on the tenants on the shorter months?

Seriously, if this is an issue for you I think you should get out of the game.

Nathan Gesner · Answer

Your position is that your tenant is paying you for 30 days of occupancy but some months have 31 day, therefore you are losing a day of rent on some months.

I think you're looking at it backwards. Your tenant is paying $1,000 for 31 days of occupancy. You've been over-charging them for five of the months for a total of seven days of rent every year.

You should contact your tenant, repent for your accounting error, and refund a week of rent.

Greedy bastage.

Karl B. · Answer

I think you just made month discrimination a thing.

Greg M. · Answer

There is an easy way to do this. They are called hotels*. They charge room and board by the day.

*Try to google Hotels if you are unfamiliar with them.

Daren H. · Answer

I sure hope your idea does not catch on. Lenders we pay will be looking for their extra payday too on fixed monthly payments. Be careful about what you ask for.

Scott Passman · Answer

@Clemence Bourgington Realistically, you would just be creating more problems and work for yourself if you start charging differing amounts by month based on the number of days. That would require tenants to do math and make a payment for a different amount that they would have to keep track of each month.  It is already enough of a challenge to make sure everyone pays on time, let alone pays the correct amount for that month on time. You'd spend more time chasing the correct amount making any potential "extra" income obsolete.

Hideyuki Gojima · Answer

@Clemence Bourgington

I understand where you are coming from but as everybody says, it will just create more work for everyone including you.

If you charge your  tenants by day, that means all the lease agreements and everything else should do that way. The pricing is like Hotel now. So now are you running a hotel? You will say no because blah blah. Again, it just creates a problem and you will find it more difficult to find your tenants.

If you think your property is undervalued, just raise the rent and absorb the amount you think you are missing. Calculating how to calculate rent is not the good solution for the problem.

Alan Grobmeier · Answer

GREAT answers!  ALL of you.  Take a bow!  ;-)

Johann Jells · Answer

Switch to the Jewish Lunar calendar. Problem solved, mostly.

Jason D. · Answer

@Clemence Bourgington it doesnt matter how long the month is, you should recieve rent on the first....

The first is always the first. The rest of the post I'm choosing to ignore

Should tenants pay more for longer months?

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