If you have a Super American phone and you have tenants that you have not been servicing with the usual 12 months of rent but maybe only 11 months, why would that be? You have to pay the water bill on those units 12 months a year. You need to collect the 12 months rent. There is a 1st and last month rent collected at the signing of the Lease. But, the last month might be in 5 years. You would not forgo the 12 month of rent for five years only because you collected the last month of rent on signing as a security deposit. The phone is a king phone but it causes a "Theoden" syndrome. What if the rent is supposed to be $12,000.00 per year per unit at $1,000.00 per month. On ten units, you are expecting $120,000.00. But, if you only collect 11 months and not 12 months on the rent, then you will be down by $1000.00 per unit per month and $10,000.00 per year at only $110,000.00 and not the whole $120,000.00. If it is a shortfall over two years, then we are missing $20,000.00 with our rent at $220,000.00 and not $240,000.00 We need to make up for this difference of $20,000.00. So, we will add an additional $166.67 per month of we intend to make up for the shortfall in 12 months. The difference is $20,000.00.

 If you have a Super American phone and you have tenants that you have not been servicing with the usual 12 months of rent but maybe only 11 months, why would that be? You have to pay the water bill on those units  12 months a year.  You need to collect the 12 months rent. There is a 1st and last month rent collected at the signing of the Lease. But, the last month might be in 5 years. You would not forgo the 12 month of rent for five years only because  you collected the last month of rent on signing  as a security deposit.    The phone is a king phone but it causes a "Theoden" syndrome.       What if the rent is supposed to be $13,200.00 per year per unit at $1,100.00 per month. On ten units, you are expecting $132,000.00.    But, if you only collect 11 months and not 12 months on the rent, then you will be down by $1100.00 per unit per month and $11,000.00 per year at only $121,000.00 and not the whole $132,000.00.  If it is a shortfall over two years, then we are missing $22,000.00 with our rent at $242,000.00 and not $264,000.00 We need to make up for this difference of $22,000.00.    So, we will add an additional $ per month of rent  we intend to make up for the shortfall in 12 months.  The difference is $22,000.00.  We divide that by 10 to see what the debt is as spread out over the 10 units and we get $2000.00.  We divide that by 12  and we get $183.33 per unit  every month. This equals $1833.33 per unit for the year in accounting for all ten units.  We multiply that by 12 and we get our $22,000. To achieve this recouping of the $22,000.00 in deficient unpaid rent over a 12 month period, we add $183.33 per month to rent for each unit. The rent is now $1833.33 per month.  If you want to take two years to make up the $22,000.00 deficit, we would divide $183 33 in two and get $91.66  X 10 units=$916.65 per month x 24 months = $22,000.00.    

You take 13 cheques at the time of signing for the first and last month's rent. The childish people want to call you soft and hope you will not follow this regular protocol. The first and last month's rent are to be dated with the same current date. If they argue, then take cash for the last month.  When the last month arrives maybe in five years or in 2 years or at the end of the current year, you must remember it is already paid in advance.     

 FSJ Journal. This article is reposted with permission and was written with research prepared by Angel Ronan Lex Scripta ™.