Woot woot! Gotta love PayDayRent!

Today is one of those wonderful days when we bring in an extra week of rent, by simply helping people with what they want - easy payments.

And the monthly payers hit in 2 days!

ALL on autodraft.

LOVE this biz!

Plenty, as you may know, Brad has posted on this before. But if you're like me sometimes we get overwhelmed with details...so much happened this past year!

It goes like this. Say your rent is $800 per month. Some folks can't budget to save their life or money, so you instead offer bi-weekly (every other Friday) that lines up with their paycheck. I typically calculate bi-weekly by dividing the rent in half then adding $10-$15.

So now Mr. Tenant is paying $415 every 2 weeks.

52 weeks in a year / 2 = 26 payments of $415.

$415 * 26 = $10,790

If they had paid monthly, $800 * 12 = $9,600.

Yes, people ASK for it! I give them what they want. I used to be skeptical, but the past 4-5 years of doing it have made me a believer.

What I advise NOT to do: don't calculate how much a payment every 2 weeks is so that the tenant pays the SAME as $800 per month. I tried that once to "be fair". Tenants didn't understand it: they thought if they paid 2 times per month that there was no "third payment" due. "But I already PAID twice this month!" They DID NOT (or chose not) to understand that they were paying every two weeks, not twice per month.

So now I spell it out in the lease: "If you pay bi-weekly, it's every 14 calendar days. Some months will have 3 payments. This amount is more expensive than paying once per month. I literally tell them (and they initial next to) the block that says they chose to pay more."

And they choose it.

Yay!!

Yep - I have a couple of tenants on every other week payments. They LOVE it. In general, it lets them chunk their rent into smaller chunks, which mean their rent is more manageable. Most of them do great with it.

Still have one who struggles, but I think he would struggle no matter what. He just can't keep his bills straight. Of course, he also doesn't write down when he spends on his debit card. Sigh.

Ken - I sell it to mine that they pay fewer late fees.

Thank you for the reminder.

The biggest problem that I have with it is that I tend to look at from my perspective and know that I wouldn't do it and I tend to fill like that I would be ripping people off.

Of course the reality is that they are going to be spending there money somewhere and giving it to someone. They are tenants for a reason.

Ken,

Yes, extra cash helps heal the body!

My lease is clear: $XXX every Friday x 52 weeks.

I they ask I tell them to forget the word MONTH. We're helping you by dealing with WEEKS.

And rent is paid in advance so a payment on July 30 is really to live in the house the first week of August.

For those not sure, we ADVERTISE the weekly/biweekly rents and people COME TO US for those rates.

Also, selling is a transference of BELIEF. If you don't believe they will see it in your eyes or in your voice and shy away.

The people on PayDayRent LOVE IT! and it helps them succeed as renters. Jeffrey explained it with 2 examples: We LLs chose a 30 year mortgage so we can afford the incremental payments. And we buy half gallon of milk even tho a gallon is cheaper per ounce because we dont' need a whole gallon.

70% of our new leases CHOOSE it and some change to it later one. If someone starts to fall behind they way we "work with them" is to put them on weekly. Same with those who bounce payments.

In addition to the extra weeks of rent each year we are also bringing in a service fee of $10 x 52 = $520 per year.

If you are not getting weekly payers re-think your advertising and approach. It's worth $1320 per year per house that rent for only $800. It's an extra 1.65 "months" of rent each year.

BRAD

Or the same as a 13.75% rent increase.

Remember - key words - this HELPS THEM.

BRAD 20,000 and Sid [MO] can you all share how you have it written up in your lease for bi weekly and weekly rents? I have offered this but would like to clean up the language and make it more clear.