Discount rent for on time payments.

[Mark Lira]

Hello

We all like to receive rent on time. With that in mind, I had a thought of advertising rent slightly higher than I need and offering a discount for payments made on the day I want it. For example if I need $860/month due 1st of the month, I then advertise for $870/month with a $10 on time discount for payments made on the 1st.

Department stores use a similar strategy where they mark up an item, then have a "sale" on it at regular price. It seems logical but a bit unethical at the same time.

Is this a good idea and something people commonly use in real estate? Or deceptive and unethical?

Any advice, thoughts or opinions would be fantastic. Thanks!

[Sacha LaCoss]

I tried this for the first time on one of our properties recently, I increased the rent  $50 over what I wanted and prominently advertised the discount of $50 to pay before the 1st and yes there is a late fee if it’s late.  So far (6 months) rent has been paid before the 1st each month.