In any lease agreement, probably one of the most important things is the issue of rent. How much rent will you be collecting? When will you collect it? How will you collect it?
As we’ve talked about in the past, pricing is relative, so that part of your lease doesn’t require as much of your own personal preference as do the other parts. Once you’ve set the perfect monthly rent, you need to set up a date with your tenant when it’s due. Usually, this date falls at the beginning, middle, or end of the month, not just any random date. Choose this date and tell your tenant to make sure that they are financially prepared for it. As a sort of safety blanket, you can give your tenants a 2 or 3 day grace period to pay without being subject to a late fee.
After figuring out how much your tenant is paying you, and when, it’s time to figure out how they will be paying you. At this day in age we have all sorts of ways to pay people instantly, allowing you to have lots of options and choose what’s best for you. We all know the classic payment method: checks. Checks are easy because mobile banking now allows you to cash them instantly, but they still require your tenant to bring them to you. Online payments are great because they’re pretty quick for both you, and your tenant. An online system works well when you have a lot of tenants. Another way that people transfer money that’s becoming quite popular is via mobile apps. Mobile apps like Venmo and Square Cash have made it possible for people to transfer money to each other almost instantly. Though this is still fairly new, it may be something you want to consider.