Property Manager: Custom instruction for acceptance of payments?

2 Replies

Hi,

I'd like to establish an auto-bill for rent payments on the tenant's paycheck paydate. The first month he may pay a pro-rated amount.

My question is about dealing with property managers. Are they generally open to client/owner stipulations like this? The PM would help the client setup the auto-billing.

If PMs are not flexible in this regard, can I tell them I'd like to handle the tenant onboarding over the phone, and have the PM handle the other aspects as usual (including showings)?

@Gary Clisele PM should be responsible for collecting the money the best way possible. That is what you are paying them for.

I personally manage all my houses myself. The tenant deposits the rent into my bank account. So every Bank teller at any branch is collecting my rent for free.

They pay or they get an eviction notice. I don't chase rent. I now have many long term tenants that have been trained.

As far as repairs, I take these via text and then text my handyman or HVAC guys to go handle it, then I pay them.

Takes very very little time once you have systems and trusted support people in place.

@Gary Clisele

I'm an landlord/investor and my wife is a property manager. I hope our insights help... 

I don't think most professional property managers would be open to this stipulation for a couple of reasons. 

1) PMs want to make sure that everyone is getting paid. In my experience the PM collects rent (usually at the beginning of the month), pays vendor invoices, refills the maintenance reserve account (if there is one), pays themselves the agreed upon management fee, and then distributes the owner's proceeds. This process guarantees that they are getting paid what they are due, but also that the vendors and contractors that they worked hard to establish relationships with will also get paid.

2) PMs who want to grow their business need to keep processes and procedures consistent across all of their different property owners and properties. Being a PM is a very time consuming job. Deviating from their procedures will likely take time away from more important/urgent matters.

With that said, a PM may be able to help with rent collection in other ways. For example, a PM may offer paynearme as a way for tenants to pay rent with cash at their local 7-Eleven. Interview some local PMs, see what they say.

Hope this helps!  

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