Written by Matt McKeever
Never give a rent discount. Always keep cost reimbursements to tenants or compensation for problems as separate financial transactions.
Many novice landlords make the mistake of providing rent discounts to tenants. It’s always better to charge the full rent amount, and then pay or reimburse any expenses or cost the tenant may of incurred. This may sound trivial, but it is not, and many landlords have lived to regret giving a rent discount.
I’ve experienced this personally, and have heard similar stories from dozens of landlords, a one time compromise or rent discount turns into and ongoing battle to collect the full rent amount in future months.
Providing a one time ‘discount’ rather than reimbursing for an expense or paying compensation separately can set a bad precedent for tenants. It encourages them to find other problems in order to receive additional discounts.
Keep rent payment and reimbursements/compensation as separate financial transactions. Do not open the possibility for a misunderstanding going forward that the discount was for an extended period, or that a new rent amount was established.
Also by keeping rent payment and reimbursements/compensation as separate financial transactions you’ll make you bookkeeping simpler for yourself as well.