Tenant wants to pay Monthly- better or worse?

I advertised my IP for $520 paid weekly, but as my tenant gets paid monthly he has requested to pay monthly ($2260/month) due the first Thursday of each month.

Will this work out better or worse for me as the landlord?
I was thinking the full months rent money would sit in my offset account for longer an thus offset a larger amount?

Thoughts appreciated

 

Would the monthly payment be one month im advance?

 

Yes they have offered to pay the months rent in advance on the first Thursday of every month

 

As long as its in advance, it should be better.

 

We had to pay 1 month in advance here (Canberra) when we were renting. It seems to be standard here.

 

Most of my tenants pay monthly, I believe this is fairly standard in Victoria. Some in QLD pay fortnightly. Weekly just sounds like it creates extra paperwork.

Having 4 weeks rent in advance is far better for a lot of reasons. It saves you interest (if the money is in an offset account) and you've got more security due to the higher upfront payment.

At the end of the day, go with what fits the tenants pay cycle. If they're paid monthly, collect the rent the day after they get paid for the month. That means paying the rent is one of the first things they do when they get paid. Collect the money whilst they've got it without relying on their ability to budget.

 

That doesn't seem like its completely in advance. Unless they are paying until the first thursday of the next month each time.

 

Yeah thats a good idea thinking from their perspective and keeping their cashflow in mind.

Minimising this risk is likely better benefit that the few bucks I might save if the rent was due on the 1st day of each month vs first Thursday

 

Only if they pay two months for the first payment.

 

Rather than get them to pay 4 weeks and try to remember when there's 5 Thursdays in a month, calculate the monthly figure and make sure that's paid on the first Thursday of the month.

$520 / 7 x 365 / 12 = $2,259

There's going to be times when you're a few days ahead, or sometimes they'll be a few days ahead. It's still fair overall.

 

Yep awesome thats exactly what Ive accepted

 

Are you self managing, or going through an agent?
Will the agent disburse rents on the date you choose or hold it in their trust account till statements are sent?
Im sure this info will help you choose!
Getting rent money into your account quicker really helps your interest!
I hope this helps

 

Self managing this one. Property is around the corner from me, good referees for the tenant so I was happy to

 

Canberra standard is monthly, one month in advance. Weekly seems more onerous for everyone? Better to have a whole month's rent accumulating interest for you isn't it?