Rental Investments: Partial Payments

When you get involved in rental investments, there are a number of things that you are going to have to deal with. One of these issues is whether you should accept partial payments. Here are a few things to consider about partial payments on rental investments.

Partial Payments

Sometimes when you are a landlord, you are going to run across tenants that have trouble paying the rent. When this happens, some of them are going to try to offer you a partial payment of what they owe instead of the full amount. They will usually ask you if they can make up the difference with a payment plan in the future.

Should You Accept Partial Payments?

As a general rule, you should not get in the habit of accepting partial payments. If you are familiar with the tenant, there are some situations where you would potentially allow them to make a partial payment. However, if you allow this to take place regularly, the tenant is usually going to take advantage of you. It will start out with one partial payment when they get behind on their bills. From there, they will start to make more partial payments and will get even further behind on rent.

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