Discount rent for on time payments.

53 Replies

Originally posted by @Josh Buchanan :

In John Schaub's book, Building Wealth One House at a Time, he goes over how he implemented a similar system that also factored in tenant complaints/service calls. It is a great book on SFH investing.

That's a good book.

 

@Mark Lira I just view it as another thing to manage. Alternatively, I'd offer a discounted rate to a great tenant at lease renewal. If someone has been great all year, $10-$20 off per month instead of an expected increase could really gain some loyalty and save you vs a month of vacancy. 

@John Pierce - In Virginia you can actually charge any late fee you and the tenant agree on.  If you charge different than 10% a Judge will ask to see your contract, but as long as the tenant agreed to it, you almost always get it.  And most times the late fee is paid outside of any court dealings, so the very few times a judge may override the contract and back it down doesn’t cause reason for you to limit your late fee in your lease.  Just sayin’.  ;)

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