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Calculating The 3. Be alert to any special offer the customer is

Initial Payment receiving (first week free when second week is paid,

etc.). Find out when the customer will be able to
come in and make their first renewal payment (this
is their renewal date).
After the rental order has been verified and approved,
but before the rental agreement is printed, you will need 4. Calculate the total number of days between the
to finalize the details of the initial rental payment. delivery date and the renewal date.
This is necessary prior to printing the rental agreement 5. Calculate the amount of rent the customer will
because the amount of the initial payment shown on need to pay today:
the rental agreement must match the initial payment a. If the customer is receiving free days of rent,
receipt entered into the computer. The initial payment, subtract the number of free days from the
which includes the amount of rent due from the total number of days between the delivery and
customer, is comprised of several other factors as well. renewal dates (step 4), then multiply the number
of days remaining by the daily rate
To determine the initial payment, follow these steps:
b. If the customer is a rent adjustment because of
1. Ask the customer for the rental payment frequency special pricing or promotion (99¢ first week’s
(weekly, monthly, etc.). Make sure it is consistent rent), multiply the total number of days by the WELCOME & ORIENTATION / TRAINING ROADMAP
with the way they receive their income: daily rate, subtract a week’s rent, then add 99¢ CUSTOMER CLOSE / CALCULATING THE INITIAL PAYMENT
• Customers who get paid weekly can pay weekly, 6.
bi-weekly or monthly If the customer accepts the LDW, multiply the
• Customers who get paid bi-weekly (every other rental amount by the LDW percentage for the total
week) can pay bi-weekly or monthly number of days of the initial payment (for states
• Semi-monthly (1st and 15th, or 2nd and 16th) with a Club Program, this would be the “percentage
customers can pay semi-monthly or monthly for the Club Program”).
• Customers who get paid monthly must pay 7. Calculate the sales tax on the taxable amount of the
monthly transaction.
2. Set the renewal date. The key to customers making 8. Total the calculations.
on-time rental renewal payments is to set the
renewal due date on the date they can come in to
make the rental payment. Do not make the mistake
of setting a renewal date for a date the customer
cannot keep. It will result in a first payment default
and the loss of an account. For example:
• Customers who get paid weekly on Fridays should
be due weekly on Saturdays Clear as
• Customers paid bi-weekly must be set up on the
same week they get paid mud? If so,
• Customers paid semi-monthly should be due the
day after they get paid: if they get paid on the don’t worry—
15th and 30th, their renewal date should
it’s time for a little
be the 16th and 31st/1st.
NOTE: Many Franchisees believe that standardized due
dates make it easier to manage past dues. Discuss this practice.
point with your store manager and franchisee to have a
good understanding of their policies regarding due dates
and be sure to comply with that policy and procedure.

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