In our previous article, we began discussing the shift from yearly rent payments to embracing monthly rent payments as a viable option in the rental market. As landlords and tenants, it’s time to consider how this initiative could make life more sustainable and manageable for everyone.
In this article, we will discuss what to consider when choosing between these two payment structures and examine the pros and cons of each
Yearly Rent Payments.
We are all familiar with this payment structure. Typically, we save up a bulk amount to pay our landlords, and the amount of money we have paid qualifies us to live in that apartment or house for a full year before another payment is due. But let’s consider the upsides and downsides of it
Advantages of Yearly Rent Payments.
Cash Flow for Landlords: Collecting rent yearly from tenants provides landlords with the advantage of a stable income stream. They are able to anticipate and plan for expected within that duration of time
Reduced Tenant Default: it is less stressful for landlords, they don’t have to go through the stress of looking for new tenants for their properties every month or every few months.
Disadvantages
Financial strain: Yearly rent payments require tenants to save up a huge lump sum for their rent. Not everyone excels at budgeting and saving not to mention, that tenants may have to deal with rent increases on short notice.
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Monthly Rent Payments
Now, monthly rent payments have taken a few forms in Nigeria. Rent financing companies like Ule Homes are becoming third-party partners in the rental business. They provide tenants the relief they truly need as they accommodate people at phases of financial growth, where they can rent an apartment and pay instalmentally every month. Although a minority of landlords currently allow monthly rent payments.
Advantages of Monthly Rent Payments
Flexibility and Ease for Tenants: For instance, If Bayo’s yearly rent in Lagos is 700k, partnering with a rent financing company, Bayo has to pay an automated monthly rent of 58k minus interest. Bayo can pay this easily with this arrangement and the burden of the rent payments is lifted.
Clear Budgeting: Paying rent monthly can also help tenants have a clearer view of their remaining funds for savings and spending. With paying your rent monthly, you are drawn to the awareness of all your living expenses relative to what you earn monthly. This approach will help build better spending and savings habits.
Disadvantages of Monthly Rent Payments
Late Payments: This payment structure provides an avenue for late payments, partly due to financial uncertainties that might occur on the part of tenants. This can still be managed to an extent with agreements between the landlord and tenant.
Ule Homes Monthly Rent Payments.
At Ule Homes, what we do best is help young professionals secure the place they want to be their home. Ensuring the budget weight is as easy as possible. We achieve this by providing the landlord financial security by paying the tenant full rent, while the tenant pays us on a monthly repayment plan.
It is a win-win for both tenants and Landlords. Don’t let the huge lump sum of your rent discourage you from getting the house or apartment you truly desire. Pay your rent in Lagos with Ule Homes.
To get started with the monthly rent payments, you can visit our website at www.ulehomes.com to know us better and see our customer’s testimonials.
Or You can dive right in by filling out our KYC form here
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Omotayo Ajewole
Ule Homes