But My Rental Mortgage is Due On the 1st!
Isn’t that right? Don’t you have to make your mortgage payment on the first and that’s why it’s so important to get the tenants rent check in immediately?
Well, did you know you can ask most lenders for the payment to be on a different date? You can even make it mid month if that takes extra stress off of you. Now be warned, the bank may want to charge you slightly more for the privilege of changing payment dates to something that works for you, but if you are a good customer, it might be negotiated away.
The biggest bonus for using this tactic is you will have a large window of notice if a tenant bounces a check and you have plenty of time to ensure your payments are covered. If for some reason you don’t already have a float to cover you in place that is.
Rent Is Due On The 1st! Because My Rental Mortgages Are Too!
This is actually another fallacy that most landlords fall into because they have to make rental mortgage payments on the 1st. Sure it’s easier for you as the landlord to track, but occasionally you will run into a tenant who is stuck in a weird payroll schedule and receives their check on the 5th or some other date.
If you have a tenant like this, you need to make a judgment call. If your mortgage payment date isn’t the first, you can be flexible and allow the tenant to make payments on an alternate date, decided by you and the tenant and then backed up in writing. The question is, how much extra work will this be?
Sure it can be a nice thing to do for a GREAT tenant, but now you have to make a second trip to the bank, which may not be much of a hassle. Unless you have multiple properties and now have to stop at the bank on the 1st, 3rd, 5th and 8th, just because you are so flexible with your tenants.
Understand Your Rental Mortgage Options
So before you commit yourself to some crazy banking schedule, determine whether it’s worth it, whether it’s a perk you can offer some people or whether you are just creating more work. Then again, if you changed all the days your mortgage are due to the 15th, maybe you would still only make one trip to the bank!