Can You Collect More Than 12 Cheques per Year?
As a real estate investor, we will own many types of properties. There will be many exit strategies that we will have that will create massive and passive income for ourselves. I must remind you that using a single realtor to help you build your portfolio is a recipe for disaster.
In that, you will build your portfolio extremely slowly, and be caught up in what that realtor thinks if best for you. As a real estate investor you must be completely in control of your business, remembering that you are you business as a real estate entrepreneur
As a full-time real estate investor, we will ultimately become a landlord. There are many extremely intelligent ways of being a landlord, and in the next series of articles I would like to give landlords out there many tips on succeeding in their business.
That said, lets get into it. As a landlord, how many times a year do you get paid by your tenants? The standard answer would obviously be 12. In this article, I am going to show you the mindset in collecting more than 12 cheques.
How Often Does Your Tenant Get Paid?
The typical tenant gets paid perhaps once a week, once every other week. Rarely do they get paid once a month. But you receive a cheque once a month, and during that time, the tenant is there in your unit. That tenant is spending money on whatever people spend money on. And quite often, depending on the responsibility level of the tenant, there may not be enough money at the end of the month to pay you.
This is a common problem that landlords face, as a typical landlord. Why don’t we change the way we do business, by asking our tenants “what is their pay cycle?”
If their pay cycle is every other week, like most working-class people, then it would be a fair argument to ask that tenant to pay that portion of the rent when they get paid, so there is no worry after that about the money that they have after they’ve paid you that they can utilize that money for whatever they need it for.
And if the rent has been paid in their mind, which takes the weight off not only the tenant but off the landlord as well.
If we think about it, getting paid every other week means that you are getting 26 payments, and if we do the math on that, by the end of the year, you will have collected 13 cheques by the end of the year.
Can we do this legally? Yes if it is OK with the tenant, definitely. If that tenant gets paid weekly, we can utilize the same philosophy.
Landlord Tips- Landlording/Property Management-Collecting 13 Cheques