Lease Rent Clauses - Discounted Rent, Late Fees, Due Date

I have been a real estate investor for over thirty years and I like selling a house on a lease purchase.
Discounted Rent:
I give a $200 discount for paying early or on time. Sound crazy does not it?
Here is my logic and particulars:
The rent after the "low cost" is actually the market and advertised rent. For example: the market and the advertise hire is $1000. My rental settlement says the lease is $1200 but, if the lease purchase renter pays on time, there is a $200 discount!
I've by no means had a renter object to this. Why would they? In the event that they did, they are admitting they will pay late. The tenant now understands the penalty of not paying on time and you, the owner, don't should spend you Time, Treasure and Expertise chasing the lease with out being compensated.
Late Fees:
My late charge is due the day after the hire is due. I do not give a 'grace' period. What ought to I? I've discovered over time, the tenant's mindset is that the lease is just not due until after the grace period. So, if the landlord gives a 5 day grave period, the renter thinks the rent is 'due' on the sixth.
Do not give a grave phase. The lease is due when it is due.
Also, don't be 'whimpy' on the late fee. If the cost is late sooner or later, I cost a 10% late payment and if not received within 5 days, I charge an extra 5% - a total of 15%.
I start evictions when 6 days after due date.
Due Date:
My rents are due on the twenty fifth of every month, not the 1st.
Two causes I do that:
1 - my mortgage fee is due on the first and I want their hire to make the mortgage payment.
2 - Because my rent is due on the twenty fifth and never the 1st as all other landlords, I begin the eviction process before them and normally and get better service from the Magistrate Court docket (quicker courtroom date) and Sheriff (faster eviction discover delivered to tenant).
Some tenants will complain that they receives a commission on the 1st and the fifteenth and won't have the cash until the 1st. I merely tell them to pay me on the 15th.
Explain to your tenants you start evictions on the sixth day after the due date after which they will also be chargeable for my court docket price and there is a $200 reinstatement fee. This is for my time to file the eviction process.
Backside Line:
Discount Lease: The hire after the discount is the market and marketed hire
Late Price: No grace interval and charge the payment the day after the due date. Begin eviction 5 days after the due date
Due Date: On the 25th, not the 1st.
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W. Lewis Burger CCIM, has written many articles on real estate investing and self directed IRA's The forms and agreements on RealEstateFormsForInvestors.com were developed using this experience and hundreds transactions. These forms and agreements are very detailed and strongly favor the landlord. If you are looking for a simple and cheap one or two page documents that are not written by an experience investor, do not visit my site. However, if you are serious real estate investor, don't want to get screwed by your tenants and willing to pay for my mistakes and experience, then my site is for you.

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