First of the Month Fantasy

(Disclaimer- yes, I KNOW this isn't possible, and I KNOW it isn't politically correct)

I saw a segment on a TV show the other day, in which some car companies (presumably used and carry their own note) are putting a device in their cars to remind people to pay. Seems the device starts blinking a week before the payment is due, starts BEEPING a day before, and if the payment hasn't been made by a certain time on the due date the engine won't start!

Now here it is time for rents to come in, and the "usual suspects" are late again. So here's my fantasy: I could put a device in the house that would blink a week before the rent is due, beep a day before, and if they don't pay by 5:00 pm on the due date THE DOOR REFUSES TO OPEN! (Well, it WOULD make my job easier...)

Posted by Leslie Prest, Prest Realty, Payson, AZ on 04/03/2008 12:21 PM

Comments (11)

11 Comments on First of the Month Fantasy

I like it - but it does not make you any $$$....I have a $50 per tenant late fee and $100 per tenant notice fee - H/W don't pay by Sat...I'll spend an hour in the office on Sunday preparing 5 day pay or quit notices and add $300 per tenants.....once or twice and they learn to PAY ON TIME....yes, I keep the fees.

04/03/2008 03:35 PM

by Wallace S. Gibson CPM (Gibson Management Group, Ltd.)

Let's "DO IT"! I share a fantasy similar to that.... and BTW, i do believe it IS possible! LOL The only thing is, you'd create tenants who would NEVER LEAVE THE HOUSE (for fear of not being able to get back in!) LOL

04/03/2008 05:43 PM

by Rice Property Management & Realty, LLC

Wallace- actually we have some tenants who habitually pay $100 or more in late fees. The Owners would rather keep them in, while I would rather get them out because of the extra time and trouble involved in collecting.

Diane-You're right- the tenants would just stay in. We'd have to make the alarm go really LOUD after the due date has passed or something to make it uncomfortable.

04/04/2008 12:25 PM

by Leslie Prest, Prest Realty, Payson, AZ

What happened to, "its the first, the rent is due" mentality? You will always have a few late payers, it is a part of the business.

04/07/2008 12:39 AM

by Robert Machado, CPM MPM Sacramento Area Property Manager and Property Management (HomePointe Property Management, CRMC)

Leslie - if you are keeping these tenants in your properties, you keep the late fees....I justify keeping my late/notice fees because these are the tenants who are TAKING MY TIME...they are not taking the owner's time....

04/07/2008 07:41 PM

by Wallace S. Gibson CPM (Gibson Management Group, Ltd.)

Ha! I'd love to add an annoyance reminder to the front door for tenants--or maybe their cell phone--something they can't live without! But of course, a firm schedule of what happens when rent is late is very helpful. If they know a late notice and late fees start getting charged after day 5, I find they motivate to get rent delivered in time....but still a nice annoying reminder I'd love!

05/15/2008 09:05 AM

by Bill Dowell Condo Assoc. Management in Worcester, MA (Worcester Property Management LLC)

Christina- We have somw Tenants who pay late every month, and the Owners don't care cause they get part of the late fees. Oh, well.

05/15/2008 01:54 PM

by Leslie Prest, Prest Realty, Payson, AZ

I make the rent due on the 28th...with a three day grace period, and it works fine.

06/30/2008 09:16 AM

by Das Cefa (Poverello Properties)

The trick I've been using is a discount of $25-$50 dollars off the contracted rent if payment is received by the 1st (used to be the 5th). Late charges then begin applying on the 10th. I found the potential of $75+ in fees tends to wake up most folks.

07/17/2008 06:13 PM

by Greg Peterson, Realtor® Oklahoma City, OK (Dean Lemons & Associates)

Wow, Greg. Our late fees kick in on the 3rd. And some people consistently pay them. I don't think, for us, offering a discount would help any.

07/18/2008 12:34 PM

by Leslie Prest, Prest Realty, Payson, AZ

Thanks Leslie! The reasoning for the discount is that the judges here in Oklahoma City sometimes have issues with forcing deliquent tenants to pay late fees. The discount is off the contracted rent, so they have no real choice but to enforce it. It's been working fairly well for us, so far.

07/18/2008 01:05 PM

by Greg Peterson, Realtor® Oklahoma City, OK (Dean Lemons & Associates)

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