Most tenants pay rent on the first of the month. Others pay on the 15th or the last day of the month. Some tenants have an arrangement where they pay whenever they get paid, which can be weekly or any other schedule that works for them and their landlord. If you’re a landlord, it’s important to determine a rent due date that works best for you, your tenants, and your business.
Why You Should Have a Clear Rent Due Date
When you’re renting out a property, it’s important to have a clear rent due date. This date should be clearly stated in the lease agreement and adhered to by both parties. A rent due date is basically the day each month that the tenant is required to pay their rent.
As a landlord, it’s also important for you to know when your tenants will be paying the rent. This knowledge can help with budgeting and making sure that money is coming in on time each month.
You won’t have to worry about chasing down individual tenants or wondering when they might pay their rent. If a payment is late, all you have to do is refer back to your lease agreement and let them know what the consequences are for being late on the rent.
Tips for Selecting a Rent Due Date
Most landlords choose the first of the month as their rent due date because that makes it easy for them to keep track of when rent is past due. However, there are some very good reasons why you should consider choosing another time of the month. With this in mind, here are some tips for selecting a rent due date:
Staggering Due Dates for Multiple Properties
If you own multiple properties, then it can be difficult to collect rent payments from all of them at the same time. When you have several tenants who pay their rent on the first day of each month, it can be frustrating trying to collect all those payments in such a short amount of time.
Instead, consider staggering your rental payment dates. This approach will help you spread out your workload and make the process much easier for you.
You could set up one set of rental units so that all of the tenants pay on the first of every month, another set on the tenth, and yet another set on the twentieth. This way, you won’t have to rush around trying to get all those payments in at once.
Rent Due Dates for Section 8 Housing
If you accept Section 8, then keep in mind that these rent subsidies are typically paid between the 2nd and 4th of each month (delays can occur). Therefore, we suggest that you have your tenants pay their portion of the rent by the 5th or 6th of each month at the latest.
Consider Your Payment Cycle
Do you want one of the best tips for selecting a rent due date? If you pay monthly bills on the 15th, you might want to set your rent due date on the 1st. If your payments are made semi-monthly, and you get paid on the 1st and 15th, the middle of the month might be a better choice for you.
Be Flexible (Within Reason)
It’s always a good idea to be flexible when renting your home, but you also want to make sure you’re being paid on time and in full.
If you can’t manage the requested rent due date, be upfront with the prospective tenants before they sign the lease. Let them know that you are flexible (if you are), but try to offer a few suggested dates that will be acceptable to you.
Consider allowing your residents to pay their rent in half-portions before it is due. For example, your residents may pay half of their rent on April 15th when they receive one of their bi-monthly checks, and then pay the remaining balance when they are paid again on May 1st.
Also consider allowing a grace period of one to four days past the due date before charging late fees or penalties, and make these periods known in each tenant’s lease agreement.
Be Flexible and Be Clear When Selecting Rent Due Dates
If you’re a landlord, you may have some flexibility in determining when rent is due. Dealing with this flexibility upfront can be important because it’s very difficult to change the rent due date once your tenant becomes used to paying on a certain date.
Take advantage of our tips for selecting a rent due date. Be clear in your lease agreement about when rent is due, and discuss your flexibility allowance on due dates to help tenants make their payments on time.