All Topics / Help Needed! / tenant incentives

Viewing 20 posts - 1 through 20 (of 22 total)
  • Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    hi all
    what are some incentives to get my tenants paying on time .some advice would be appreciated.cheers.

    Profile photo of PropertyAllSortsPropertyAllSorts
    Member
    @propertyallsorts
    Join Date: 2003
    Post Count: 18

    Hi Beerboy, The Richdad series of info suggested some of the following: occasional movie tickets, early/punctual rental payment discount as opposed to late payment penalty, instal bathroom heater (or other things) to justify small rental increase, use what you have access to at discount prices e.g if you know a car detailer, maybe you can strike up a deal for your tenants with the detailer etc

    Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    thanks uran
    the tenant is the key to a successful investment/business im sure more people on this forum can get the creative juices flowing on tenant incentives.
    early payment with $10 reduction sounds o.k .
    10x$52=520 u could also offer 2 week free rent at the end of each lease agreement.unfortunately $520 could be most of lnvestors profit.this with unexpected maintenance fees can ruin ya little profit.
    trying to think outside the box on new incentive ideas.cheeeeers.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Yes, beerboy, but with the ‘rent reduction’ you have actually increased the rent by that $10 per week anyway, so you’re happy to get the quoted price less $10. If they don’t pay on time, then you get a bonus when they do pay up.

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Im a bit weary on discount cheaper rent, once one asks they all seem to ask… Discount rent is ok, but it then becomes more of a hassel once they cant keep up with payments or they futher ask more discounts or later dates to make payments.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    SIS, it’s only a discount in this instance if they pay on time. It’s easier to do that way, than to say there’s a penalty if they are late.

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Mel,

    Very much agree with you, (Also see that your in the 2 top posters now…. so jealous..[B)])

    Though lets say, if they cant keep up with discount rent, then how do you expect them to keep up, when its time to up the rent again…

    Honestly, other incentives like free movie tickets every now and again, are a much better idea, than reducing or discounting rent.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    I am with SIS on this only because the rent is what we want to acheive, so other incentives need to be taylored to the tenants needs. It will make uping the rent in teh future much more difficult.

    One incentive that I thought of today was a subscription to Super Food Ideas Magazine – $25 for twelve months, so every month they receive something from me that is going to help there home lives assuming that most people renting my properties are just your average family and SFI is a great mag for the average family for cheap and easy recipes etc.

    Cheers
    Leigh K[:D]

    Carve your own path and lead the way …

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    We could keep ‘restating our positions’ on this one, but I’ll just add this:

    If the tenant is struggling to pay the rent on time, ALL the time, do you really want this tenant? I would be much happier to have a tenant that happily pays on time to get a ‘discount’ (which is precisely the rent I wanted to achieve in the first place), and who was qualified to be in the property on the basis of the more expensive rent, rather than somebody who struggles to pay.

    Although I will admit that with one lot of tenants – that I deal with myself rather than using a PM, I have offered them 2 movie tickets per month if they pay BEFORE the 1st of the month. Sometimes I’ve had the rent a week and a half early!

    Cheers
    Mel

    Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    thanks for the tips..

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Do people wait until their tenants have paid late 1 or 2 times then offer an incentive or do you do this from day one and how do you approach it?

    Cheers
    Leigh K[:D]

    Carve your own path and lead the way …

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Leigh,

    i dont offer, what i do instead is, offer new fixtures or improvements, but at the same time increase the rent.

    i much prefer to give incentives for the property managers i deal with.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    in my case i have the chance to purchase a p/cflow
    property. the property manager said the current tenants
    are two weeks behind on their rent but always catch up
    with a little pushing.they keep the place clean and seem o.k.on a small wage i cant let the repayments get behind.
    so if i take the risk do i offer some incentive to snap them into line.they have just signed new lease too.i have worked out that the profit would be around $2000p/a.i dont think the area will recieve much capital gains. i think vendor is keen to sell so i could offer less than asking price and make a bigger c/flow.??scary for me but exciting too.
    b/boy.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Leigh, I have done it with new tenants – certainly not as a ‘reward’ for paying on time if they have been late before.

    Beerboy, don’t drop the rent to encourage them – if they always do catch up, don’t worry too much. Try to save a little yourself each month, so that you have a backup if they are a little late and you have a payment due. Ask to see the payment history from the PM, so you can work out for yourself just how late they do get etc. That should help to set your mind at rest.

    Cheers
    Mel

    Profile photo of ErikaErika
    Member
    @erika
    Join Date: 2002
    Post Count: 151

    Just a quick question, how many of you are tenants and do you receive these things.
    Erika

    Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    never have i been offered any incentives in my ten years of renting. even when i was young and rebellious and always late with the rent.

    Profile photo of ScullyScully
    Member
    @scully
    Join Date: 2003
    Post Count: 48

    I was never offered any incentives to pay my rent on time (when I was renting), and so far we have never offered any of our tenants anything to pay their rent on time (over a period of 6 years).

    If the property has been chosen well then there shouldn’t really be much trouble getting a tenant who pays on time without incentive.

    One of our tenants did, however, leave us a Ford Falcon in the garage when he moved out![:p]

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    ok guys, i will admit i was a tenant back in college…

    at the time i was renting a room for $50 pw, yet the people who i payed rent to, were very nice people, there was times they gave me free rent for doing odd jobs around the place and for some reason they would bring home goodies, to us student tenants.

    While the whole time i was there, they never up the rent, only the new students they increased the rent before they moved in. Great guys they were, they looked after the students very well.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    sis- you admit there was a time when you were a renter? hehe- too funny :) I am still a renter. And you are too sis- except you don’t pay rent!!! So actually, you’re a squatter!

    kay henry

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831

    OK OK, *deep breath* I admit it too…

    “my name is richmond, and I was once a renter”

    cheers
    r

Viewing 20 posts - 1 through 20 (of 22 total)

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