Rent Credit Program - Question

Thinking about unveiling a rent credit program to our parks and the financials look great and we have the leases/agreements in order but I just had one question.

-For those of you that have a rent credit program in place, when a tenant does not make a payment on time do they forfeit the rent credit for just that month or all the credits they have accumulated?

In my experience even good tenants pay late sometimes due to unforeseen circumstances. The spirit of the program is to motivate the tenant to own the home, have pride of ownership, and pay you first. If they lose all their credits every other year because of a late payment you will never give them that chance and the program is effectively useless and you will never get rid of those homes.

That is a good point. We want to be fair with the tenants and reward them for being good tenants.

It’s a catch 22 situation as you never want tenants that pay late.
Good tenants know to pay rent on time ahead of all other financial obligations.
Making a mistake in not paying rent on time is OK once, deciding not to pay rent on time is never acceptable.

Only for that month. You want to give them a time-out, not flog them.