When does everyone get their rental check/wire??

Question

I'm new to REI so this sound like a silly question.  I was wonder when does your PM deposit the rent in your account?  My PM get the checks from the tenant on the first and I receive my payment around the 15th(if its wired) or 19th of the month. Does this sound like a reasonable payment date? I don't want it wire because there are two charges, one from the PM and one from my bank.  The total for the wire would be $40.  I don't want another silly expense.

Aaron Mazzrillo · Answer

Sounds like you have an out of area or out of state rental. Just ask them to send you a check. No reason for a wire and the fees involved. Payment on the 10th or later is pretty standard from my experience. I don't even take wires from escrow regardless of the dollar amount. Not worth the cost unless I need the money ASAP for another deal. $40 is dinner at a decent restaurant. No reason to let the bank eat your dinner.

Account Closed · Answer

Kevin,

It sounds so BS to me. $40 charge? That's freaking outrageous. I would probably walk into a Wells Fargo branch and ask them about their fees, and how long it takes for the direct deposit to show up on your account, etc.  I second what Aaron said. Find a way to save that $40 and use it to take your significant others to lunch or a cheap dinner once a month. That's a lot of ice cream money for my daughter. :)

Good luck straighten things out with your PM and save some money for years to come.

Kevin Chhorr · Answer

Account Closed  Thanks for the reply.  The PM came with the property I bought out of state.  I told them to direct deposit it into my bank account.  I don't know what bank the PM uses but I have Wells Fargo. They charge 15 for incoming wire.  PM claim wire is faster and direct deposit take 48hrs.  Weird when I talk to my bank they said if the PM company direct deposit it would be in my account  instantaneously.

@Aaron Mazzrillo Yip, thats not an expense I want occurring each month when I can easily avoid it.  I told them to direct deposit into my account. I think the PM is sending an E-check or something.  Or is it they are lazy to do it on the 15th.

Account Closed · Answer

Not sure why the wire charge is so excessive.  Some of my tenants have direct deposit with zero charge. Some bank, like B of A, charges $3/transaction. We give the tenants up to the 5th of the month to pay rent. The standard of practice is to receive the rent payment from your PM by the 10th. The 15th to 19th sounds awfully late.

I've talked to some local investors in the Bay Area, who invest out of state, and the common theme is that they feel the PM is taking advantage of them. In addition, it's probably the lack of experience when selecting and negotiating the terms with the PM upfront before hiring them.

Kevin Chhorr · Answer

@Minh L.  I know it is an outrageous fee.  I did tell my PM not to wire it. Yip, I can better spend the $40 somewhere else. It does buy a lot of  ice creams. grin

Mehran K. I see a couple of people get their payment on the 15th or later too.

@Michaela Graham  I think the PM use the company account to send/ach the amount to my account.

@David A.  I though there might be a fee to set up the ACH.

@Annette Hibbler  I guess wells fargo does charge a lot but its so close and convenient for me.

I would like to thank everyone for their input and experiences!  It's great to be a BP member and get free advice on anything RE relate.

Xing Zhu · Answer

If you tell your PM to wire the money, there will be a fee. If you tell your PM to use ACH, there will be no fee.

Occasionally, some bankers call ACH a wire transfer and call "wire" the "Federal Wire." Be careful with different wording.

Many banks now have different routing numbers for ACH and for Wire. Make sure you give your PM the right one.

Annette Hibbler · Answer

Wells Fargo does have outrageous fees for wires.  We had the same problem until we decided to open a bank account at the same bank that the PM uses.  Now, we get the rent instantly and no fees incurred.  Also, waiting till the 15th is pretty standard.

Michaela G. · Answer

I have wells fargo and my tenants deposit directly.

If they use cash, it's in immediately. If they use a money order or check, it shows as 'pending' and does take a day or 2 to be counted.

I doubt that your PM would be willing to carry cash to the bank, so if she deposits with check, it'll take a couple of days to clear.

Mehran K. · Answer

I get my money from my PM's via ACH transfer usually between the 15th and the 20th. No charge for the ACH either.

When does everyone get their rental check/wire??

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