You have undoubtedly heard of maximizing your mortgage payment by paying 1/2 of your payment every two weeks in lieu of once a month. The fact is you would pay one full payment more in the year than if you paid the traditional way.
Well with that in mind what if we as owner/managers partnered with a local community bank and promoted; All in the Name of Savings.
The promo would encourage people to pay 1/2 of their rent every two weeks thus creating a surplus that we would match $1 for $1 up to $200 or whatever we deem. And, if they renew with us what if we deposit their concessions dollars in their savings account in lieu of giving them rent credits.
With electronic payments becoming more mainstream, it could catch on.
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I think this is a great idea. What kind of interest rate can we get from the bank and do we pass that on to the renters
Posted by: Paige Kaye | November 26, 2007 at 02:24 PM
I think it would be a good idea. It would help with rent collections, especially if people believe that they are actually getting money back for paying on time or before.
Posted by: Kim Buffington | November 27, 2007 at 09:08 AM
Properties have been doing this for quite a while in some markets, but not for the reasons you discuss. They've done it mostly to help those who tend to fall behind in their rent and from my research, it works quite well. I can give you more details on it if you like.
Posted by: Lisa Trosien | November 28, 2007 at 10:58 AM
I am interested in finding out more details about this rent savings program. Can you explain in a little more detail how it works? Thank you so much.
Posted by: Paige | January 27, 2010 at 01:52 PM