How to get your tenants to pay rent early

If you own a rental property, you likely know how great that regular rental paycheck is. However, if you have a bad tenant, you likely also know the frustration of a tenant who does not pay their bills on time.

What if your tenants not only paid you on time but actually paid you early? This may sound like a pipe dream, but in this article, we will explore a few ideas that could help you turn this dream into a reality.

1. Offer a discount for early payments

The reality is that money talks. Everyone is looking for ways to make, save, or spend less money. By offering a discount (even a small one) for early rent payments, you may be able to receive early rental payments from your tenants. If they are faced with numerous bills or payments to make and your rental obligation essentially offers them a “cash back” incentive, chances are that they will prioritize it and pay your rent early.

2. Offer weekly or bi-weekly rental payments

Depending on when your tenants get their salary or income, offering weekly or bi-weekly payments could help. Sometimes it can be difficult to remember exactly when the month ends, but everyone knows when it is Friday. Additionally, if your tenant gets paid weekly or bi-weekly, it may be beneficial for them to pay their rent at the same time, as they likely have a weekly or bi-weekly budget in place. This could be easier for them, rather than keeping money aside until month-end.

3. Send your tenant reminders

As strange as it may sound, some tenants may be late with their payments because they forget or are disorganized. This may be hard to understand for some, but it is the truth. By sending a gentle reminder to your tenant a few days before their rent is due, you could empower yourself to get your rental income a few days earlier.

4. Have a clear late-payment policy

If your late-payment policy is unclear, it leaves the door open for your tenants to abuse their relationship with you as their landlord. The late-payment policy should be clear and easy to understand. Equally important is ensuring that you enforce the policy. If there is a policy in place, but it is never enforced, your tenants will likely continue to push the boundaries of the relationship. The lease should be fair for both parties but enforced without emotion.