Daily pay Daily rent
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
Daily pay Daily rent (by Sisco [MO]) Aug 4, 2022 12:22 PM
       Daily pay Daily rent (by S i d [MO]) Aug 4, 2022 2:11 PM
       Daily pay Daily rent (by MikeA [TX]) Aug 4, 2022 10:18 PM
       Daily pay Daily rent (by 6x6 [TN]) Aug 4, 2022 10:27 PM
       Daily pay Daily rent (by BRAD 20,000 [IN]) Aug 4, 2022 10:47 PM
       Daily pay Daily rent (by S i d [MO]) Aug 5, 2022 9:56 AM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

Daily pay Daily rent (by Sisco [MO]) Posted on: Aug 4, 2022 12:22 PM
Message:

Daily pay is now a thing. I have read advertising for the home health care biz. I also see many help wanted advertising about various methods to advance pay before payday in trucking and retailers.

This trend is likely to expand.

The basic concept of keeping rent due dates matching up with paydays is a solid strategy, but daily sure seems a lot more similar to the hotel business than home leasing.

What say you?

--149.76.xxx.xxx




Daily pay Daily rent (by S i d [MO]) Posted on: Aug 4, 2022 2:11 PM
Message:

So you're talking about charging rent daily or having tenants pay rent daily?

The issue I see is of transactions: keeping up for the payor and the payee. These are solvable, certainly, but let's consider the parameters.

Most hotel stays are for x-number of days ranging from 1 day to 1 week. Extended stay hotels go by the week or by the month. Rates are different for each type of stay. Regardless of the length of stay, the bill is due and paid at the end of the stay, or at regular intervals for the extended stays.

One can easily handle this with technology such as property management software. I can set up the rent to be X, rent is charged how frequently (daily, weekly, bi-weekly, monthly, annually, etc). As long as I have the tenant's financial institution info, voila...the software keeps track of everything for them and for me. Easy cheesy.

The kicker is around 45% of USA rental housing stock is owned by Ma and Pa land lords with 1-4 units. They will not invest in the software to track this unless there is a clear benefit, such as significantly higher rents. Even knowing that payday plans create higher income, many folks here refuse to do payday rents because it's "too hard to track." Baloney Slices! I make more than enough off payday plans rents to buy the software and still pocket a decent profit. It takes a few seconds extra to set up a payday plan vs a monthly plan on my software, Buildium. And the profits just roll in each month.

So would I do daily rent? You bet! I'd probably charge a convenience fee of something like 10% over the monthly rate.

Example:

$1000 / month rent = $33.33 per day if paid in one lump sum.

$1100 / month total of daily payments = $36.66 per daily transaction for 30 days.

Buildium does have a daily and weekly setting. I can say "Rent is $35, payable daily" and it will set up that payment schedule and auto-debit for me. I need to explore how my business might benefit.

--184.4.xx.xx




Daily pay Daily rent (by MikeA [TX]) Posted on: Aug 4, 2022 10:18 PM
Message:

How many municipalities would go after the hotel tax if you did this. I could see a legal battle ensuing.

--209.205.xxx.xx




Daily pay Daily rent (by 6x6 [TN]) Posted on: Aug 4, 2022 10:27 PM
Message:

Keep it simple or my mind will explode. --73.113.xxx.xxx




Daily pay Daily rent (by BRAD 20,000 [IN]) Posted on: Aug 4, 2022 10:47 PM
Message:

Sisco,

In a related trend some banks are now allowing patrons to withdraw money a day or two before their paycheck hits the bank.

People want their money BEFORE they get their money.

One ad mentioned being able to pay rent when due, not hindered by having to wait for your paycheck.

BRAD --73.103.xxx.xxx




Daily pay Daily rent (by S i d [MO]) Posted on: Aug 5, 2022 9:56 AM
Message:

MikeA,

I don't think Sisco is talking about renting by the day or week necessarily. These would still be normal year leases, but the payment plans would be tied to however they are paid. --184.4.xx.xx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: Daily pay Daily rent
Your Name:
Your State:

Message:
Daily pay Daily rent
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: