Update: Rent Payment Grace Periods
We received this comment from David (Thank you!) on the grace period for rent post. I must say, I am leaning toward a very strict very aggressive stance in this area as evidenced by David’s example. There really are very few acceptable extraordinary reasons for ones rent to be late. Price point to me should not be the driving factor for policy. In the hierarchy of needs, this should be first and foremost.
David’s comment:
*My company started eliminating our grace period at all of our new lease-up projects in Atlanta (currently 3 properties; 1 in Midtown Atlanta and 2 in the Perimeter Center area north of Buckhead). Rent is due on the first and considered late if not received by the first. There is a $200.00 late fee if paid late. At first I wasn’t sure how this would work, but we haven’t had any complaints and our delinquency is actually lower than normal at those properties. Part of it might be attributable to the type of residents we attract in the areas the properties serve and at our higher than average price point, but to me it really boils down to instructing your residents on what you expect. Sitting down and clearly explaining their lease when they move-in is a big reason why this works.*
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posted from Gmail: Stay Fluid… http://mbrewer.typepad.com/property_management/
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About Mike Brewer
My mission is to tease out the human potential in the multifamily space.