Supporting Residents through Rental Payment Date Flexibility
Offering flexibility with rental payment dates can be invaluable to renters who may be balancing when they get paid against their monthly rental and bill payment due dates, or even managing the practicalities of transferring funds — and can often be offered at little to no cost to property owners.
We found through our National Survey of Tenant Protections that many states already require that lease agreements provide a grace period during which the renter will not incur a penalty for a late rent payment.
Starting in February 2025, properties financed with a Freddie Mac-backed loan will require a five-day grace period before late fees or other penalties can be charged for late rent payments, further supporting the adoption of this resident-centered housing best practice.
In addition to grace periods, some property owners may choose to work with renters and set a monthly payment due date (e.g., instead of the first of the month) that works best for them or allow renters to set alternative payment schedules that break up payments based on their pay cycles.
Beyond what property owners can do on their own, certain firms are now offering services that provide even greater flexibility to renters. For a fee, these firms advance rental payments to landlords on behalf of renters, allowing renters to pay their rent on the agreed-upon schedule.
Although these services can help match the timing of the rent collections needs of landlords with the cash flow realities of renters, it is important to consider both the costs and benefits to renters. Multifamily owners interested in providing these services should pay close attention to the fee structures and ensure that renters are fully aware of these costs.
Discover more ways to support renters and open doors to new possibilities.