Choose a rent due date just after payday
What is the best date to collect rent and should you optimise rent due date? Is the simple default choice of the 1st of the month always the best or is it better to agree with your tenant to collect the rent on a day that works for them?
Tenants that are given a choice will frequently opt for rent to be collected on a day guaranteed to fall just after they are paid. That's because rent is usually the largest and most important financial commitment they have, and paying rent just after payday helps clarify how much money is left for less important commitments and spending on gadgets, clothing and nights out.
Planning to collect just after the tenant is paid makes sense for letting agents and landlords too. Ability to pay is at its peak just after payday, and may rapidly diminish in the following days: a recent survey published in the Mirror newspaper identified that more than a third of Britons spend most of their monthly wages within one week of their monthly payday.
When setting up new tenancies, consider how a simple tweak to agreed dates could mean a smoother tenancy for everyone involved. Remember these four features of a tenancy are distinct and that you can choose to set up the optimal dates for regular rent collection:
The rental period
The date when rent for a period is due, this can be any date chosen and agreed between tenant and landlord or agent
The date that the tenancy agreement is signed
Date the tenancy term commences which, of course, may differ from 3
Naturally, it is easier to keep your head down and just choose the 1st of the month for everything. However, savvy property managers know that if your tenant is not paid on the last day of the month this won’t be the optimal choice, and that if your tenant is regularly paid in the first half of the month it's likely to be a recipe for delay.