OfflineI was at a REI Club meeting the other night and a friend shared his "new idea" about helping his tenants and mortgagees's with their payments as well as getting his money on time.
I don't know if it really is "new", but it really helped me and maybe it can help someone else.
1. First, ask your occupant if they would agree to have their rent payments payroll deducted. Then, divide their yearly payments by the number of paychecks and that is the amount to be deducted. If they are paid twice a month, they don't have to worry about trying to save up for the monthly payment and possibly falling short.
2. Set up a savings account (at thesame bank you have your business account) in BOTH of your names. That is the only way the employer will make the deduction and transfer for them (it has to be their account). You have the statements sent to your address. You may have open the acct. with a small amount of money just to keep it open.
3. On the same day the deposit is made, you can transfer on line (from anywhere) the amount into your business account. That way the occupant doesn't acutally get access to those funds.
Most people are paid, weekly (ususally Friday), every two weeks (ususally on Friday) or 1st and 15th. So, if you have a lot of payers, you will be making transfer on those days. And of course, if you are out of town, you don't have to worry about being there to collect and deposit rents.
I don't know about you, but this "uncomplicates" things for me.
Jan
"...and the Israelites dwelled in the land of Goshen...they acquired land... and they prospered..." (Jan's paraphrase)
Wow, that's a great idea Jan, thanks for sharing that with us. Have you done this with your tenants?
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Thanks, Jan. That is a great Idea. I will present this to my new tennants when I meet with them next week.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
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Frank Outlaw
I had a friend of mine that was giving me advice on something he does. Pretty much the same thing Jan said but if they don't want to have it payroll deducted you can just give them deposit slips that way its there responsibility to make the deposits. That way they can also go put money in there whenever they want. He had one tenant that always stayed ahead of his rent and always put in there more then what was owed. Well this tenant got hauled away to jail for a long time and he had an extra 1,000 in that acount!!!
Seemed like this idea works pretty well...
Shaun
These are some great ideas. Thanks!
Wayne
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker