Tip of the Month - July, 2018


Source: Property Management for Dummies
             Robert Griswold

Think about the ramifications of accepting rent based on the tenant’s scheduled receipt of income rather than your usual rent due date.  By accommodating the tenant, you are tacitly acknowledging that the tenant needs that payment in order to afford the rent.  But one of the most fundamental issues in the management of rental housing is to avoid tenants who cannot afford the rent.

If your tenant needs that income in order to pay your rent that month, no safety net is in place if the tenant’s check is lost in the mail, or his car breaks down or he is temporarily laid off from his job.  To avoid surprises and delinquent rent, your do not want your tenants to have their finances so tight that they need this month’s income to pay this month’s rent.  Your tenant screening process should provide you with the information so that you can effectively select tenants with enough financial cushion that they are paying this month’s rent from cash already on hand as of the first of each month.

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This web page was updated on 06/30/2018.