Rents are due first week of the month. My property management company struggles to get statement out by the 15th and direct deposit payout a week later.
How long do others take?
We pay owners between the 10-15th of each month after all checks have cleared the bank
@Jack Smith I typically receive the money in my account just before the 15th of each month. My debt payment is towards the end of the month so it works out fine for me.
I usually get mine direct deposited by the 15th or so. Before I went to direct deposit, a check would be mailed to me by the 15th, then 1-3 days before I got the paper check, I am pretty sure it is normal.
Roughly day 4 or 5 I get a message that a deposit is pending.
Our rent is due on the 1st, late on the 2nd. My PM typically has the money in my account by the 4th.
Collected on the first and then initiates on the 5th or 6th and then hits my account around the 10th
That is normal for me. I don't think they're struggling, they normally send them out on the 15th.
In Rhode Island tenants legally have until the 15th to pay before we can begin the eviction process. We clear our billing on the 16th and have funds wired by the 20th of each month.
We distribute funds no later than the 15th each month. Typically, it is done prior to the 10th, but we have set the expectation for the 15th so that in any given month, there is ample time to address a tenant’s payment issue should one arise.
I pay my owners by the 15th. Most of them are paid before the 10th but my policy is the 15th.
Property Managers need to collect the funds first and ensure the payment clears. They may have bills to pay on your behalf. Then they have to collect management fees and issue your payment. Depending on how many units they manage, this all takes time.
Far too many Landlords are living paycheck-to-paycheck and relying on the January rent income to pay the January mortgage. If anyone reading this is in that boat, I recommend you fix it immediately!
Every Landlord should have reserves sufficient to fund at least three months of vacancy and/or major repairs like roof or furnace replacement. This really depends on your budget and the number of units. For example, if I have a $10,000 repair next month, I could probably pay it without digging into the reserve. Even if half my units were empty next month, I could still pay my mortgage. So my combined reserve for all 14 units is less than three months of rent income because I have a higher tolerance level. If you are living paycheck-to-paycheck or have a tight budget, you will need a stronger reserve.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing