A monthly rent payment structure is relatively new in the Nigerian real estate industry. The yearly method has been a norm for generations, but that hasn't been able to solve the housing crisis the young and working population face. Paying rent monthly affords flexibility for both the landlord and the tenant and should be adopted and made available on a larger scale in Nigeria.
Many advantages come with paying rent monthly, and here are a few:
Monthly rent payments offer more flexibility to tenants and landlords alike. For the tenants, their less burden on them to raise all the money needed for long-term rent all at once. It also reduces the risk of homelessness for tenants. It also increases the tenant's ability to plan towards their following rent without defaulting.
For landlords, monthly rent payment increases the chances of houses getting rented out on time and to trusted tenants.
2. Wiser budgeting
Spreading out rent payments across the year makes budgeting for both the tenant paying the rent and the landlord receiving the rent. Fund allocation can be done wisely and redirected without the landlord and tenant dealing with financial anxiety.
In Nigeria, landlords typically require tenants to pay a year's rent upfront, which can be a significant financial burden. Paying rent monthly means that tenants can spread the cost of rent over the year, making it more manageable.
3. It's easier to Move Out
If rent is paid monthly, a tenant can decide to move out when and if necessary. There's also less anxiety on the tenant to extend a tenancy period because their lease agreement requires them to, despite the living conditions.
4. Better cash flow management
For landlords who receive rent monthly, they're an assurance of rent payment coming in every month. This can serve as another stream of income for the landlord and diversify income for them as the money from rent can go into other businesses.
5. Increase transparency between landlord and tenant
Monthly rent payment festers a healthy and better relationship between tenant and landlord. The landlord or security maintenance company has no choice but to meet the tenant's needs when the rent payment is made monthly. Monthly rent payment also allows for transparency on how the landlord and tenant manage the property.
6. Reduced risk of default
Monthly rent payments reduce the risk of default, as tenants are more likely to make timely payments. Landlords can also quickly identify and address payment issues.
In conclusion, paying rent monthly in Nigeria has several advantages for tenants. It provides greater flexibility, allows for better cash flow management, and makes it easier to move out if necessary. Landlords also benefit from monthly rent payments, ensuring a more stable income stream. Paying rent monthly is a win-win situation for both tenants and landlords in Nigeria.
Monthly rent payment is usually a win-win situation for both landlord and tenant. And that's why Spleet is working to make it more accessible to the young working population who want to live comfortably and flexibly without worrying about paying a bulk of rent.