Rent on Time
The situation
A landlord has a tenant that always seems to be late paying their rent. The landlord has commitments he must make on the 1st of every month. The rent is due on the 21st but by the time the money hits the landlords bank account it is usually more like the 28th or the 30th.
The landlord has asked PropPay if it can structure a concurrent lease that will ensure that at least 80% of their monthly rent is in their account on the 1st or each and every month over the next 12 months.
PropPay solution
PropPay and the landlord enter into a Rent on Time concurrent lease on the following terms.
Rent on Time: $5,200 due and payable on the 1st of the month
Balance of rent: $1,300 due on the 21st but receivable whenever the tenant pays
Total monthly rent: $6,500 per month
Admin Fee: $75.80 per month deducted from Rent on Time
Term: 12 months
PropPay’s total administration fees comes to $909.60 over the term of the lease or just 1.17% of the total rent received of $78,000.
The landlord has the peace of mind knowing that 80% of their rent will be in their bank account on time, every time on the 1st of each month.
*Subject to approval. Terms and conditions apply. Illustrative pricing. Individual circumstances may result in different outcomes. Differences due to rounding. Example assumes no rent increases over the term of the concurrent lease.
