Posted by John-NY on January 05, 2003 at 12:55:42:
I currently use the same approch here in my park. I recently raised the lot rents from $150.00 per month to $165.00 per month if they pay by the 5th of the month. If they don’t pay by the 5th then it goes up to $180.00, and after the 10th we assess a 5% late charge on top of that. So far it appears to be working pretty good, as most folks receive some type of check between the last week of the month and the 5th of the following month. However some of the deadbeats who can’t seem to get use to change, still pay late no matter what. In my lease it clearly states that if your late more than three times in one year you’ll be subject to an eviction. However we never evicted anyone, it’s just another tool we can use to pressure the deadbeats to paying the rents on time. Our lot rents a considerably low compared to other parks in the area, and we even include weekly garbage pickup. I think $165.00 per month is a steal. If I raise the rents i’ll just have a harder time collecting, as they can’t even afford $165.00 now. Just my opinion.
Hi all. I’m just starting to do my research here but I have a question for you all.
I’m wondering if this would work with MH leases/rental…
I owned a home with a basement apartment I rented out. I rented it for 5 years and never had a late payment… not even once. What I did was advertised that the rent was $550 a month but if they paid on time (the 1st) I would give them a $25 discount making it $525… $525 is all that I really wanted in the first place… IF they paid after the 5th of the month there was a $25 late fee and then it started going up from there.
It worked like a charm… in 5 years we never had a late payment with about 6 different renters. Maybe we lucked out but I think it was more than that.
So I was wondering people’s thoughts on this idea and if you think it might work with MHs.
Re: Rent $225 but if you pay on time it is $200 - Posted by Joe C. (AR)
Posted by Joe C. (AR) on January 06, 2003 at 24:11:27:
I have used that same approach in my MH park for about 5 years. Since it’s a discount I also add a “late charge” of $2./day after the fifth. I did this because after the discount was lost some folks would wait several more days to pay because there was no longer a financial incentive. This has worked very well for me. I usually have all rents by the 5th and seldom has anyone gone past the 10th.
Joe C. (AR)