Incoming rental payments and due dates

When is an acceptable time frame for accepting rental payments from tenants if the due date is every second Friday? As long as when I wake up that morning it's in their I should be happy?

I have NO intentions of requesting it's in their before hand. I just mean to bring up the topic of conversation. The follow up question to this know is, if the tenant (by choice or default) insist on transferring it Thursday night so it's available Friday morning ... are we (as LL's and PM's) obliged to accept 'bank delays' or public holidays as a reason for late payment? Accept might be the wrong word, but I think my point has come across.

Being due Friday is interesting because any late payment means it won't be cleared until Monday.

I'm the type of person who pays his rent 2 days early from the due date for a couple reasons that include possible bank error, unknown bank delays and to create a level of openness and willingness. But not everyone thinks the same as me.

This is obviously for self-PM's. I'm NOT in this position, I have great tenants (who dropped off rent to me in cash because their internet wasnt hooked up) but this is a general 'make me a better LL/PM' type thread.

Cheers
 
Hi oh noes
Not sure exactly the point you are trying to make however, in my many years of dealing with tenants, if they are good and a couple of days late with the rent or they pay into your account on Friday and you don't see it in the a/c till Monday - so what. To my way of thinking, there is more to concern yourself with in managing IP's than this.:)
 
The only time as a self-manager that this caused an issue with us was when one tenant paid monthly. Rent was due 15th, and he was paid 15th so by the time his pay went in and he transferred the rent, it was often four days late.

This was not really an issue for us, but when we called him early on a couple of times with the "where is the rent" question, we both decided that he pay four days rent separately, and then the rent was due 19th of each month, which meant we didn't have to wonder when it would hit our account.
 
If their rent is due on Friday, then they have to pay it on the Friday. They can't be held responsible for bank delays. You can't expect them to pay early, though it would be nice.
Marg
 
As a PM, I do not chase rental payments until the 5th day after the rent was due.

We check rental arrears daily and with the software we use we are able to filter via days.


The best way to control rental arrears is to make it easy for your tenant to pay rent.


We prefer automatic direct debit over bank deposit or payment in person - you can specify on your lease aggreement (however in NSW you must give more than 1 option:mad:)


I understand that delays in payment does have effect on cashflow; however you should allow (buffer) for delays and non payment - as this is the risk of investing.


Banks delays do occur.
 
Hi oh noes
Not sure exactly the point you are trying to make however, in my many years of dealing with tenants, if they are good and a couple of days late with the rent or they pay into your account on Friday and you don't see it in the a/c till Monday - so what. To my way of thinking, there is more to concern yourself with in managing IP's than this.:)

I think my question is, how much of a buffer is acceptable.

From the replies thus far, it feels 3-4 days after it's due is acceptable.

I wasn't sure if all PM/LL's kept a solid "it better be in before 3pm on the day it's due".

No cashflow problems here, just a misc question that will hopefully allow me to be a better LL.
 
Our rents are paid monthly and due on the first day of the month.
Just recieved the first request to delay depositing their rent cheque. Expect we will receive several more requests in the next week.
My standard reply is, yes, but it will incur a late fee of $$$. (Tenancy Act permits us to charge 1% of their monthly rent) If they don't pay it, it continues to put them behind in rent, and we continue to add a late charge every month.By the time they move, we get a nice little bonus from their Bond.
We request post dated cheques.Some refuse, instead wanting to deposit it into our account instead. If they are late becasue of a weekend, holiday etc, that is their problem. If they had given us a cheque, it would be deposited late, but then it is our problem.
 
Hi oh noes

Sound like you are on the right track. In this game you have to be a bit flexible. You will soon tell the good tenants from the other variety so treat the goodies like gold. In time they will make you wealthy. I read on here and other forums where some owners seem to feel affronted when tenants complain about lack of maintenance, security etc. My approach is to maintain IP's to as high a standard as I can in order to attract the best tenants at the best possible rent. Works for me:)
 
If he rent is only late because of things like public holidays, I don't think you have anything to worry about in that department ;)
 
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