Tenant Rewards for Early Rent

Original post

I’d love to see an option for Early Rent Discounts/Rewards.

For example: if a tenant pays their rent early, 5% automatically gets deducted.

The positive version of a late fee!

Reply by Byron With Innago Insight

Hi Daniel! Love this as an idea. I will pass it on to our Product Team for consideration! Thank you!

Reply by Keith P

I agree 100%. This would be a key feature for Landlords.

Reply by Russell Palmiter

Can someone opine on if this would be legal in most states? Most states have laws around late fees and expected grace periods. Would they allow a rent difference in a positive direction within the first X (say 5) days? If so, would there be any restrictions on how rent is marketed? Could you do as the mobile carrier do and advertise $1000 (*with autopay and pay early rent bonuses). I'm sure this is state specific, but it would be great to know for any state someone has the knowledge for.

Reply by Keith P

I believe it would only become a potential legal issue when taking more money than the stated lease amount. I don't see how it would become an issue to charge the Tenant less money, unless, perhaps, you are dealing with the hassle of government housing such as Section-8.

As for advertising the discounted lease amount, it must be worded so there is zero ambiguity about why the price is the way it is, and in smaller print disclose what the normal price is without the discounts. Having ALL the information present will protect you in court, should someone take you there about the price.

Besides, it is honorable to disclose all the pricing details up front.

Reply by Keith P

Reply by Dawn Wolkenfeld

I've been giving rent discounts for 25 years. This is how I advertise it:

BEAUTIFUL, 2 BEDRM, 2-BATH PLUS HOME OFFICE, and lots of storage. Has attached garage and fenced yard. Renting for $1350/month, but you will GET $100 OFF RENT DISCOUNT EACH MONTH when you pay rent on the 3rd of the month or before. So, if you are a timely rent payer, your rent would be $1,250/mo. Tenant pays all utilities. Application processing fee $45. Security deposit $1350.00

Reply by Dawn Wolkenfeld

In your lease you must state specifically what must happen to get the discount. This is how my lease words it:

Rent: For the use of said premises Tenant agrees to pay to Landlord as rent for the above mentioned term, the monthly sum of $1,250.00 (twelve hundred and fifty dollars) on or before the 3rd day of each month during said term with a discount of $100.00 (One hundred dollars) if rent is received at the office of the Landlord, (insert address here) (or wherever designated in writing by the Landlord) on or before the 3rd day of each month. If rent is not received on or before the 3rd day of each month at the office of the Landlord, Tenant shall be responsible for the full monthly sum of $1250.00 (Twelve hundred and fifty dollars) starting on the 4th day of each month. In addition a $10.00 per day liquidated damages fee will be charged for each day rent is past due beginning on the 5th day of the month, along with other remedies available hereunder or at law, including the right of Landlord to evict Tenant.

Reply by Connie

Love this! I might have to do something like this in the future.

Reply by Akeba Gittens

Yes I told you guys this last year or partner with companies that do

Reply by Mark Person

We're experimenting this right now to have a $50 discount off rent if RECEIVED by the due date. Spell out the mail or bank delays would affect this.