Your first month’s rent falls due on the date you sign the lease. During this date, one is also required to pay a security deposit equivalent to one month’s rent. But. some property owners may ask for more than a month’s rent
For subsequent months, your rent will be due on the 1st day of every month or as spelled out in the lease agreement. While most rental agreements require that tenants settle their rental bills in advance at the beginning of the month, some property owners or agents may legally establish different payment dates such as weekly, biweekly, or bimonthly. Some payment methods may also be flexible such that one can pay on the date of moving in each month.
This article highlights what to do if rent falls on a holiday or weekend and the consequences of delayed rent. We also look at reasons rent falls due at the beginning of the month and how to budget for your monthly expenses. Read on!
What Will Happen If Your Rent’s Due Date Falls On A Legal Holiday Or A Weekend?
According to rental and lease agreements, in most states, if your rent’s due date is on a legal holiday or a weekend, you need to pay it on the next business day. But, it is necessary to look at your state’s law concerning payment of rent, if no mail is delivered to you.
Ensure that you read the agreement correctly to know how and where to pay the rent. But, unless the property manager or owner has an on-site office, the most common method is to mail the check to their business address. While mailing your payment, make sure to give it adequate time to reach the managers on or before the due date.
While several landlords expect you to pay your rent via money order or check, some may accept the payment through credit card or automatic debit. If your landlord or property managers allow you to make cash payments, be sure to get a receipt indicating your name and date when you pay. Doing this serves as proof of payment.
What Are The Repercussions Of Not Paying Rent By The Due Date?
There are several consequences of not honoring your rent obligation on time, including;
1. Receiving emails, calls, and demand notes from the landlord that you pay your rent
2. Late fee penalty if there is such a provision in the lease agreement
3. Getting a termination notice indicating that if you don’t honor your payment, you will be evicted.
Why Is The First Day Of The Month The Ideal Date For Rent Collection?
The first day of the month is the best for rent collection, and there are various reasons, including;
Most Lease Agreements Begin On This Day
Most leases start on the first date of the month, and it makes sense that rent will fall due on the same day. A different rent arrangement may bring confusion, especially when dealing with several tenants. It may be hard to plan for your money when tenants pay their rent on different dates.
Most People Get Paid At The End Of The Month.
Since most people receive their pay at the end of the month or the week, setting the due date for rent on the first day will ensure that rent is paid on time. The tenants receive their paycheck before their rent falls due, reducing the chances of them not having money to honor their obligation.
Tenants Will Pay Rent Before Other Bills.
Most bills such as mortgages, credit cards, and utilities become due on various month dates. So when you collect the rent on the first day, there is an assurance that the tenant will not divert the money to other expenses before settling paying for rent.
It Is Not Easy To Forget.
When rent falls due at the beginning of the month, it becomes easy to remember both the tenant and the landlord. It is not likely to forget that the beginning of the month means rent is due.
Why Is It Necessary To Set A Date For Rent Collection?
Setting a given date for collecting rent has several benefits for both the tenants and landlords, including;
The Landlord Can Budget For Their Bills.
When there is a fixed deadline for rent payment, the landlord can budget for other bills. It is possible to plan how to pay for water, electricity, or mortgages at a given date since you are sure of when to receive payments.
It Helps The Tenants To Establish A Routine.
Fixing a due date for rent payment helps the tenants establish a routine. One can set priorities of what needs to be paid on different dates, which helps one settle their rental bills on time.
You Can Easily File For Evictions.
When tenants set a date for paying their rent, it is easy for the landlord to track late or non-payments. You will easily file for eviction of any tenant who always pays their rent later than the agreed date.
How To Budget For Your Apartment’s Rent
Nothing disappoints like receiving reminder notes from your landlord due to late payments. It is, therefore, necessary to budget properly. Some of the expenses you need to factor in include water, natural gas, electricity bill, rent, renter’s insurance, and internet.
When budgeting for your rent, you also need to remember that there may be other charges that come with it. These fees include;
1. Garbage pickup fee
2. Parking fee
3. Administration fees
4. Pest control
Since not all apartments include these fees, it is necessary to ask before signing a lease agreement. Some of these charges may be monthly, while others are a one-time off.
Security deposit is usually paid at the beginning of the lease together with the first month’s rent. This deposit is primarily equivalent to one month’s rent unless the lease states otherwise. But, when using a broker, you might be required to pay another month’s rent as their fees. In most cases, one gets a refund of the total amount during moving out if there are no damages in the property or the apartment is in the condition that the tenant found it.
In other cases, a tenant may be asked to pay a smaller non-refundable amount as a security deposit. This fee is used to fix any damages that may occur during your tenure instead of you being asked to repair them before you can move out.
Deposit For Utilities
In some apartments, tenants may also be required to pay a refundable deposit for utilities, especially those that fall in their name. If you pay your utility bills on time without fail, you will get a refund a few months after the expiry of your lease. You can also expect to get a credit on your statement from the service provider instead of a payment.
Some property management firms expect a tenant to have renter’s insurance before occupying a house. But, even when this is not a requirement, it is a good idea for you to ensure your items are safe. Renter’s insurance fee varies depending on the type of apartment and the area you live in.
When applying for an apartment, the property agents or management firm may need to conduct a background check or run your credit before allowing you to occupy the same. This service requires you to pay some administration fees. But some companies may not ask for this charge, so you must make some inquiries about it.
The Following Table Summarizes The Various Fees/Charges And Their Estimates.
It is usually a month’s rent or more.
Not more than 30% of your monthly salary
$10 to $20 per month
Between $70 and $150
How Can You Cut Down On Rental Bills?
There are several ways in which you can cut down on the amount you use on rent, including;
Choosing A Smaller Space
Sometimes living in a one or two-bedroom apartment can be costly, depending on the location. You can reduce the amount of money you spend on rent by living in a basement or studio apartment as this is usually cheaper.
Living Off The City
Residing in the suburbs or the city’s outskirts is cheaper than near or within towns. It is an excellent idea that you look for an apartment far from towns or cities if you want to save a few bucks every month.
Reside Near Your Workplace
If you live far away from your social life or workplace, you might spend more on transport costs. It is necessary to consider looking for an apartment close to where you work and perform other activities.
Always make sure to consider your budget when choosing the right place, location, and type of housing to rent.
Before looking for an apartment to rent, especially for the first time, knowing when the rent falls due is necessary. Discuss with your landlord or property managers whether they give a grace period for this payment. It is also essential to consider other monthly expenses to budget well.