Should you offer your tenant a discount for paying on time?

Absolutely, but…

I discount my rental payment $200 if the payment is received on or before the due date, but the ‘on time’ payment is the rate I advertise in the newspapers, web site, etc. For example, the ‘rent’ stated in my Lease is $1200 but, after the $200 discount, the rent the tenant pays is $1000; the advertised rent was $1000.

This is a win/win situation for the landlord. If I receive the rent on time, I win. It the rent is late, I just earned another $200. HOW COOL IS THAT? The exact paragraph and verbiage is in my Lease.

For a Free Copy of my Residential Lease Agreement clicking here.

For more about determining what rent to charge for your house, you must consider supply and demand. For more on this topic, click here .

This link in blue is from About.com and is also a good explanation.

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Wednesday, January 4th, 2012 Lease

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2930 Comments2010-07-24+00%3A31%3A07Lewis to Should you offer your tenant a discount for paying on time?

I love this rental lease agreement it works out for both parties involved. They have motivation to make the rent on time, and you have an incentive if they do not. Very smart business man!

Jays Earning Money on July 24th, 2010

This is actually a pretty cool idea. A landlords worse problem is having to deal with tenants that are not prompt with their payments, but an incentive would definitely help with that.

I'm actually moving into my first apartment in a month, and I'd definitely be impressed with a policy like that.

Genivieve on July 24th, 2010

Thank you very much for this great advice. We have had to relocate to a new city recently and have had trouble selling our house. We are thinking about renting it out and your lease agreement and this idea will be very helpful.

Andy Ward on July 24th, 2010

I have been buying and renting houses out for years and have never thought of doing this before. This really is a great idea. On one hand you get your rent on time but if you don't you get an extra $200. Thanks for the tip!

Raymond Henry on July 24th, 2010

If someone can't pay $1000 what makes your think they will pay $1200? I am just curious if something like this actually works. The way it works for me is they don't pay and leave a trashed apartment before I can ever collect.

J-Son on July 24th, 2010

I agree with J-son. Although I like this idea in principle it comes with many complications. The advertised rate is $1000, so charging a $200 late fee is a little bit hard to justify and perhaps will just create resentment.

I think a simple fix would be to advertise at $1200 and accept $1000 as on time payment. The tentant then feels they save by paying on time, and if late no longer feel they are paying a penalty but the true rate.

Dee on July 26th, 2010

best services website. i will be visited everyday this website

md tushar on July 26th, 2010

this really is a win win situation for the both parties , loved reading the post , very useful , thx

jakew65 on July 27th, 2010

useful tips and it's of great value to many pepole !! , guess i'll share the info here with a friend who want to learn about if Should you offer your tenant a discount for paying on time?.thank you very much for your article

adoula on July 27th, 2010

useful tips and it's of great value to many pepole !! , guess i'll share the info here with a friend who want to learn about this ..thank you very much for your article

adoula on July 27th, 2010

Very cool trick I must say. Really impressive to get profit out of every month rental. Even I have tenants which often pay me late. And I fine them nominal instead I can use your trick and give them discount on paying me on time. Thanks for the idea.

Zanith Jain on July 27th, 2010

it was right. it was a win win situation for tenants and the leaser for there will be a great deal agreement on the paying details.

marra on July 27th, 2010

It is a really a win-win situation.all the offers are very great.i must recommend it to my friends.all of them should also feel great to listen this.

gary on July 27th, 2010

really i have came across this on several times,We have had to relocate to a new city recently and have had trouble selling our house..A landlords worse problem is having to deal with tenants that are not prompt with their payments..and I’d definitely be impressed with a policy like that..

wan floyd on July 27th, 2010

I am into the renting profession for many years and have never tried this before. It seems to me as a great idea.

Thanks for the nice suggestion

Pranav Agrawal on July 27th, 2010

I have been buying and renting houses out for years and have never thought of doing this before. This really is a great idea. On one hand you get your rent on time but if you don’t you get an extra $200. Thanks for the tip!

akila on July 27th, 2010

this method of paying a discount for tenants is a unique and nice approach for all to follow,everyone can try it and experiment and earn more profits

harish on July 27th, 2010

Should you offer your tenant a discount for paying on time? – http://bit.ly/aH7MDO
This comment was originally posted on Twitter

WLewisBurger on July 27th, 2010

very useful tips i hope it will helpful in my home relocating process that i am going to start from near future thank you for the deal and advice.

biosha on July 27th, 2010

it's a wonderful trick and so helpful, it's a unique thought, on question about that it will help the professionals to earn some extra.

tintin on July 27th, 2010

I do not and have never done this. What is the point? If the tenant can't pay the rent then they should be evicted. Renters that don't pay on time are not worth the hassle.