AppFolio Payment Issues

[Joe Richardson]

For the last few months payments from my PM to me through AppFolio have been experiencing constant issues.  The PM is trying to reach out to them and is only able to have email correspondence.  I'm getting emails when she requests the payments be made but then the money doesn't come.  I received payment for several years without issue and now it's always an issue. Anyone else seeing this problem?

[Simon W.]

Quote from @Joe Richardson:

For the last few months payments from my PM to me through AppFolio have been experiencing constant issues.  The PM is trying to reach out to them and is only able to have email correspondence.  I'm getting emails when she requests the payments be made but then the money doesn't come.  I received payment for several years without issue and now it's always an issue. Anyone else seeing this problem?

I have clients whose PM firms use AppFolio to send owner distributions, and I also have clients who receive distributions through AppFolio. I personally haven’t seen a widespread issue on either side.

That said, if this is happening repeatedly, I would not automatically assume it’s just an AppFolio problem. There are a few possibilities:

ACH/payment setup issue

Bank verification or return issue

AppFolio processing/merchant account issue

PM accounting workflow issue

PM cash-flow issue where funds are not actually available when distributions are being requested

The part that would concern me is: you’re getting the payment notification, but the money never arrives. I would ask the PM for the actual AppFolio payment confirmation, ACH trace number, date initiated, amount, and whether any return/reversal notice was received.

If they can’t provide that clearly, I’d start digging deeper. Repeated “payment issues” can sometimes mean the PM is waiting on new rent collections to fund older owner distributions. Not saying that’s definitely happening here, but it’s something I’d want to rule out quickly.

I’d request:

Owner ledger

Trust account ledger for your property

Copy of the AppFolio disbursement report

ACH trace/payment confirmation

Explanation of any failed or reversed payments—this one is going to be hard to get clarity. 

If the money was truly sent, there should be a traceable payment record. If there isn’t, then the issue may not be AppFolio.