Prop Mgmnt comp - Holding my money for a month

4 Replies

I have a question about property management companies because this came up with the company I use down in Tampa, FL.  My PM has done this for quite a while but I've only challenged them on it recently. 

When my tenant pays their rent on lets say the first of the month my PM holds that money pays any necessary HOA fees and then 30 days later pays me my money. With my most recent tenant moving in a few days ago I brought this up asking if we can come to an arrangement to make my PMT earlier. The response was that they can deposit it by the 15th at the earliest to allow the check to clear. This seems some what reasonable but then he added the comment that any minor repairs will have to be paid by me.

Yes, in the past any minor repairs albeit infrequent would be taken care of, but I can't think of the last time a repair was necessary. 

Am I just being a jerk wanting my money sooner?  Please tell me if I am and I'll drop this.

Thanks,

Mike

We offer 2 options to our customers either wait till the end of the month for your owner draw or get paid as soon as the funds are cleared  and have a $200.00 min account balance.   To pay for any bills. 

If work is required we have a hard time getting owners to send money in a timely manner.  It adds a whole other step or 2 to the process.  If there is a minor repair that is needed we need the ability to act on it immediately and on the back end pay our vendor as soon as we receive the bill. 

Hi Mike,

You're not being a jerk for wanting your draw earlier. Assuming the tenant pays the rent on time, there's no reason why your draw shouldn't be deposited by the 10th.

Having said that, this scenario is exactly why PM companies ask you to keep a small reserve of, say, $300 in your account. This pays for minor repairs that can come up like leaks, HVAC work, etc. When you have the reserve, the PM company pulls from that to pay for minor repairs, and then replenishes it when the next rent check comes in. 

The "letting the check clear" excuse is so 20th Century. My question would be why aren't the tenants paying electronically? With e-banking, the money is there almost instantaneously and there is no float time waiting for the check to clear.

I would think that as long as they had a fund set up with a minimum amount for emergencies or unexpected repairs or bills, they should be able to give your money to you right away.  I see that others have mentioned a couple to a few hundred dollars. I would be more likely to think that it would be reasonable to request that you keep between 500 and 1000 dollars in the account, but that is just if you don't require them to go through you for larger responsibilities and repairs.  

Regardless of what amount you set up with them, they should be able to get the money over and above the reserve threshold to you sooner than 30 days. I do, however, understand that some people are stuck in their ways and refuse to do things electronically. Personally, I have some elderly tenants who do everything from a checkbook and snail mail. They don't even own a computer let alone know how to use the Internet.

Thanks for the quick reply and all the great info!

Im going to ask my PM If they accept electronic PMTs, if I can just keep a couple hundred dollar balance and if I can get my money sooner than the 15th!

BP is awesome!

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