Landlord Quick Tip
Tip #209: Good Tenant Discount, or Bad Landlord Policy?
But, unfortunately, there’s a catch.
The early payment discount may not be legal. In the eyes of the law, the discount is nothing more than a late fee in camouflage, and it may be subject to all the same restrictions — the amount cannot be excessive, and must bear a relationship to the actual out-of-pocket losses the landlord suffers if the rent is late.
While you may have followed all fair housing rules during the tenant screening process and accepted them as a resident, you could still be discriminating in other ways. Rent discounts have been challenged as discriminatory — penalizing those on government assistance or the poor, who are often minorities or families.
There are less-risky options for collecting rent on time. Encouraging automatic withdrawals or electronic payments may be a safer strategy for landlords.
See last week’s Landlord Quick Tip It’s In the Mail! Even proper tenant screening background checks can’t always eliminate late rent excuses.