For most landlords and property managers in Ontario, the first of the month is the go-to rent due date.
It simplifies things – if rent isn’t in by the 2nd, you know it’s late, and you have all month to chase arrears.
But what if the first of the month isn’t the best option for your tenants? Could changing their rent due date lead to fewer missed payments, smoother cash flow, and happier tenants?
A crowded day for payments
Think about it: the first isn’t always just rent day.
Many tenants face car and insurance payments at the start of the month, or have just finished paying off bills from the previous month.
If their credit card billing cycle ends early in the month, they could be hit with large payments or debt right when rent is due.
Other financial obligations, like student loans or child support, are often scheduled for the first, leaving little room for rent – even if their paycheque arrives on the same day. This can lead to late or missed rent payments.
One solution is to push the rent due date back, even by just a few days, giving tenants a little more breathing room to manage their finances, whether by shuffling funds between accounts, finding alternative sources of income, borrowing from a friend, etc. A small adjustment could make a big difference in their ability to stay on track with rent payments.
Other alternatives
Utilities and service provider payments, like cable and cell phone bills, are usually due on or around the 15th. Many tenants on biweekly or semi-monthly pay schedules also receive their second paycheque around this time.
This creates an opportunity to push the rent due date further into the month, perhaps a week after the 15th or closer to the end. By then, tenants might have more flexibility to make their payment in full without competing with other bills.
Talk to your tenants
If late payments are becoming a trend, it may make sense to ask tenants if another rent due date would work better for them. You could even offer payment date flexibility to all tenants from the day they move in.
Self-employed tenants, freelancers, and others with irregular pay schedules might benefit from more flexibility. By adjusting to their income cycles, you could help a tenant stay on track and avoid falling behind.
As a bonus for the landlords and property managers who still collect rent manually, staggering rent due dates can help spread out the workload.
Instead of scrambling to process a flood of payments in a single day, having rent come in throughout the month can make the process more manageable and less stressful.
Skip the hassle with PayProp
There’s an even better solution: skip manual rent collection altogether.
With PayProp, tenants can pay rent conveniently online and the system does the rest. PayProp automatically reconciles payments, pays landlords, and even handles your commission.
Have multiple rent due dates? No problem. PayProp’s smart tech follows the flexible rules you set, so it works with any payment schedule. Plus, the platform sends automated payment reminders to tenants and notifications to both you and the landlord, keeping everyone on the same page.
Rent collection doesn’t have to be a headache, and sometimes, a little flexibility can make a big difference.
While the first of the month remains a popular choice for rent due dates, consider whether a new one could benefit your tenants – and simplify things for you in the process.
