Are you looking for options to make rent payment easier for your tenants? Remember, the easier it is for your tenants to pay rent, the better for you to collect rent on time, reduce late payments, and keep your cash flow steady. Continue reading to learn more about the pros and cons of bi-weekly rent payments.
What Is Biweekly?
If you’re like me, you may get confused about the meaning of biweekly. Does this mean twice a week? Twice a month? Which one is it? Let’s clarify. Bi-weekly means “occurring every two weeks.” Sometimes this can be confused with semiweekly, which means “occurring twice a week.”
Biweekly rent payments mean that tenants pay rent every two weeks, and the landlord makes the dates—usually the 1st and 15th, and sometimes the 15th and 30th.
What Is a Biweekly Rent Payment?
Biweekly rent payment is an arrangement set up that allows tenants to make rent payments twice a month.
For some tenants making monthly rent payments can be difficult. This difficulty is an irregular income stream and the timing of their bills. Their difficulty in meeting the monthly due date can cause problems for both the tenant and the landlord.
The Benefits of Biweekly Rent Payments
Whether you’re a tenant or landlord, you can avoid the disadvantages of paying or accepting monthly rent by accepting biweekly payments. Allowing for biweekly rent payments can help stop these disadvantages:
Late Rent Payments for the Tenant Can:
- Make it challenging to build a credit score or negatively affect their credit scores
- Make the tenant appear unreliable to the landlord
- Make it so they can’t get a good recommendation from their landlord
- Lead to eviction
Late Rent Payments for the Landlord Can:
- Negatively affect their ability to pay their expenses due to erratic cash flow
- Cause them to get behind on their mortgage payments
- Cause disorder in property management operations
The benefits of biweekly rent payments can 1. create a more efficient business model for the landlord and 2. a more peaceful relationship between everyone.
Biweekly Rent Payments for the Tenant Can:
- Support building a credit score or positively affect their credit score
- Encourage a strong relationship with their landlord
- Offer peace knowing that their living situation is safe
Biweekly Rent Payments for the Landlord Can:
- Produce a little extra cash if you apply a convenience fee
- Produce a more even cash flow that supports the mortgage payment and bills
- Show care and respect for tenants
How to Write a Biweekly Rent Payment Schedule
When writing a biweekly rent payment agreement, as a landlord, consider making it an addendum to a rental contract, so it retains the legal vocabulary.
A landlord can make a biweekly rent payment schedule available to their tenant(s). When making the schedule, be sure to include the following:
- Include the landlord’s name, tenant name, and property name
- Statement of which days rent will be due, i.e., 1st and 15th, 15th and 30th, or if appropriate, it can be made biweekly every two weeks starting on a specific date. The choice of which option is up to the landlord.
- A sentence about when rent must be due before incurring late fees. For example, “If payment is not received by ___ number of days after the due date, a late charge of $______ will be added.”
*NOTE – A landlord can add a withdrawal of this arrangement clause. For example, if _____ number of late payments are made, this arrangement is void.
Here is a sample of a biweekly rental agreement you can look at to design your schedule—
How to Manage Biweekly Rent Payments
For tenants, managing monthly rent payments can be stressful. Tracking, saving, and having enough money on the first of the month can be difficult depending on when they get paid. The more difficult it is, the more likely landlords will not get rent payments on time.
One way to help both landlords and tenants is using PayRent. PayRent allows renters to make rent payments when there is no rent due. This mode of payment will enable tenants who are struggling with cash flow and reduce the risk of landlords receiving partial payment or no payment.
A Final Thought
If you’re a landlord and struggling with collecting rent on time. Remember, your renters may be doing the best they can but are grappling with cash flow. You can help them and yourself by using PayRent, an efficient and effective tool, and allowing your tenants to make partial biweekly payments. Renting can be easy if you have the right tools! Check out PayRent today!