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Whos Tenant Pays Rent Early

Discussion in 'Property Management' started by rhinsor, 3rd Sep, 2015.

  1. rhinsor

    rhinsor Well-Known Member

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    Hi all,

    Just interested in who here has tenants that pay rent early or in advance.
    Have you had your tenant pay a week early or have offered and paid 3/6/12 months in advance?

    I'm happy when I see rent in my account 2 days before it is due. :eek:
     
  2. wylie

    wylie Moderator Staff Member

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    Ours pay two weeks in advance, some one week in advance. As long as it goes in, I'm happy.
     
  3. Rixter

    Rixter Well-Known Member

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    6 months in advance is the longest.
     
  4. Samten

    Samten Well-Known Member

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    So that's how you become hugely successful.:)
     
  5. Biz

    Biz Well-Known Member

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    [​IMG]
     
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  6. Bayview

    Bayview Well-Known Member

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    BWAHAHAHAHAHAHAHAHA!
     
  7. headsonbeds

    headsonbeds Well-Known Member

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    Had a tenant once that was well over 6 months in advance and left at the end of the lease still in advance. I would have had to repay over 4 months rent but fortunately they moved into another unit of mine so agency sorted it out. They're over 2 months in advance again. Agency said you can't stop people paying in advance in QLD.
     
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  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    They pay 2 weeks in advance as soon as they move in :p
     
  9. Big Will

    Big Will Well-Known Member

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    You should have them pay in advance that way there is less chance you need to make up their shortfall and also gives them more time before having to issue notices.
     
  10. Rixter

    Rixter Well-Known Member

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    What I like about them paying in advance is it provides you some nice upfront working capital that you would not normally have the luxury of to get working for you.
     
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  11. Big Will

    Big Will Well-Known Member

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    Money today is better is always better than money tomorrow.

    Easy decision between 2 weeks in advanced compared to 2 weeks behind (4 week gap).

    Being 2 weeks like you said means you are able to do things earlier or sleep easier.

    Being 2 weeks can impact your lifestyle and not everyone enjoys calling for money, hence why people use PM (amongst other reasons).
     
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  12. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    I have a tenant who is about 2.5 months in advance and keeps going higher with every week. He goes into the agency twice a week to chat up the receptionist and I think uses paying as an excuse to do it. My offset account loves him dearly.
     
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  13. Lacrim

    Lacrim Well-Known Member

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    I just had a tenant pay a year in advance...and the rent pw is > $1000:cool:
     
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  14. Azazel

    Azazel Well-Known Member

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    Had a tenant paying in advance, but I suspect they were doing something dodgy there.
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    I had one who paid $1100/wk a year in advance (had just sold his house, contractor/no fixed income/tight rental market).
    Also had a friend who paid $2k/wk same deal.

    In NSW you can't ask for more than 2 wks in advance however there is nothing stopping the tenant from offering.
     
  16. Sonamic

    Sonamic Well-Known Member

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    Had one tenant pay a full 6 month lease in advance. Was a tidy little sum after the PM took their cut of course.
     
  17. Esh

    Esh Well-Known Member

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    We had a tenant who paid rent 12 months in advance. He didn't want the hassle of having to make frequent payments. Lovely guy
     
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  18. Depreciator

    Depreciator Moderator Staff Member

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    There have been a few stories about tenants paying a long way in advance so that they are left alone. They sort of get forgotten about and get up to all sorts of mischief in the property - unauthorised 'improvement', drug labs etc.

    Scott
     
  19. Azazel

    Azazel Well-Known Member

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    True, it's sounds good in theory, but a small percentage want to be seen as model tenants - and get up to some shifty stuff.
     
  20. Nikoletta

    Nikoletta Member

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    I have tenants paying up to 6 months in advance. It's much better than having to chase them but you, the owner should be sensible what you do with the money. Your offset account is a great option.
    As an agent, I prefer to give the option to the owner whether it's paid out in full or not, especially if I pay their property related expenses. I find it important to make it clear that many things can happen during 3/6/12 months and you may have to refund some of the rent paid in advance and you need to understand it upfront.
    However, if you still do routine inspections etc., the chance of forgetting about the tenants paying months in advance is the same as the chance of forgetting about tenants who pay by the due date, isn't it?