russ295 Posted August 12, 2007 Report Share Posted August 12, 2007 hi one for the tax experts and the legal eagles, speaking to simon and had a thought that if you offered your place at, lets say £500pcm with a 10% discount if the funds are received before the due date, what would the situation be. i sometimes do this when i quote for work, helps me get paid within 7 days usually. any views russ Link to comment Share on other sites More sharing options...
odecar Posted August 12, 2007 Report Share Posted August 12, 2007 Why would I give a deduction to someone to pay their rent when due ? Link to comment Share on other sites More sharing options...
russ295 Posted August 12, 2007 Author Report Share Posted August 12, 2007 not quite with it ode when i price a job at £1000, i quote/invoice at at £1100 less 10% if paid in 7 days, i still get my full pay. £500 rent less 10% is the £450 i need in the first place, maybe an incentive to pay early? russ Link to comment Share on other sites More sharing options...
Grosvenor Posted August 12, 2007 Report Share Posted August 12, 2007 I add to my T Agg that should rent be paid over 7 days late I charge 10% of the rent due. Also, everyone pays by DD. Paul Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 12, 2007 Report Share Posted August 12, 2007 Hi All Personally i think a very good simple idea..(discount for prompt payment) ...agrees to rent the prop....at a rent of £500 per cal month ....(with a discount of 10 % (£50) if cleared funds are received into LL nominated bank acc on or before the 1st of each month) payable by standing order. considerations 1. could this in anyway get caught up in the TDS - I dont see why it should ? 2. Gives you written consent to chase them for a pre agreed sum .....cant see a problem there ? 3. Possibly better than "late payment fees" in that "rent" will be enforced by a court - late payment fees may not? 4.Good incentive to pay on time ...Expensive if you dont ... I suspect it will rest on whether the £50 is seen as a discount or a fee .....(500 down to 450 or 450 upto 500) Most utility companies do this, as do most advertising mediums and a lot of my business suppliers and tradespeople that i work with also parking tickets which iin cardiff are £60 but only £30 when paid within 28 days Following on from this logic - does anyone know of any reason why we couldn't also include a choice of "fixed - discount - or tracker rents " as all property owners have with their morts? Why should a T have the luxury of fixed whilst all home owners and LL are financially battered to death ? My preference would be a direct link to IR's - Mortgage up = rent up This seems perfectly fair and right to me .....? And like us if they want a fixed rent then like us they can pay a premium for it ..... These steps would certainly level the playing field a bit ....... I think i will ring CAB or shelter to get an opinion HAHA I'll let you know ................... Any legal boffins or housing act gurus out there see any problems? Simon PS if you could do this along with all the other preventative incentives to pay on time ....i think we would really begin to balance up the equation somewhat! Matt is going to love this one ! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 12, 2007 Report Share Posted August 12, 2007 Hi All Personally i think a very good simple idea..(discount for prompt payment) ...agrees to rent the prop....at a rent of £500 per cal month ....(with a discount of 10 % (£50) if cleared funds are received into LL nominated bank acc on or before the 1st of each month) payable by standing order. considerations 1. could this in anyway get caught up in the TDS - I dont see why it should ? 2. Gives you written consent to chase them for a pre agreed sum .....cant see a problem there ? 3. Possibly better than "late payment fees" in that "rent" will be enforced by a court - late payment fees may not? 4.Good incentive to pay on time ...Expensive if you dont ... I suspect it will rest on whether the £50 is seen as a discount or a fee .....(500 down to 450 or 450 upto 500) Most utility companies do this, as do most advertising mediums and a lot of my business suppliers and tradespeople that i work with also parking tickets which iin cardiff are £60 but only £30 when paid within 28 days Following on from this logic - does anyone know of any reason why we couldn't also include a choice of "fixed - discount - or tracker rents " as all property owners have with their morts? Why should a T have the luxury of fixed whilst all home owners and LL are financially battered to death ? My preference would be a direct link to IR's - Mortgage up = rent up This seems perfectly fair and right to me .....? And like us if they want a fixed rent then like us they can pay a premium for it ..... These steps would certainly level the playing field a bit ....... I think i will ring CAB or shelter to get an opinion HAHA I'll let you know ................... Any legal boffins or housing act gurus out there see any problems? Simon PS if you could do this along with all the other preventative incentives to pay on time ....i think we would really begin to balance up the equation somewhat! Matt is going to love this one ! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 12, 2007 Report Share Posted August 12, 2007 Sorrry guys dont know why that went up twice.. Paul - 10% pa or what ? Have you had this tested at court level ? I charge £5 per day late fee + 5% over BoE base rate + £20 per week reminder letter + £20 per notification of each breach of agreement When payment is seriously overdue T gets informed that DC will be taking over and the above will have 15% added to it plus any further collection expenses the T decides to incurr with the DC... As it is i find that they tend to sort out late payments fairly quickly !!! But the above should put off most people from even thinking about it ! Simon - firm but fair - pay your rent on time and we'll get along just fine - steal the food from my family's table and i will hit you with everything that i am able ....(first line of my AST !!! - Just kidding!) Simon Link to comment Share on other sites More sharing options...
Grosvenor Posted August 13, 2007 Report Share Posted August 13, 2007 Simon, my TA says that T must pay on the first of every month by DD/SO with a charge of 10% of the monthly rent due added to the account should any amount of this rent be still not paid after 7 days of becomming due. Just in there to concentrate the T's mind really. Never had cause to charge it. Sometimes if a T contacts me to say bank payment may be slightly late for some reason I waive the 10% but say it's a concession and that I only expect this to happen once. Firm but fair......as you say Paul Link to comment Share on other sites More sharing options...
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