How do you collect rents?

Question

Let’s say my property rent not NOI is $1m a year.

All tenants pay online using an online service or app etc.

I have a property management company that I pay 10% so $100k.

As the property management company manages the property like the leases, finding tenants, repairs, maintenance etc do they collect the $1m paid to their bank account and I trust that they only take a $100k cut and pay me $900k or can I instruct them to set up the online service where all the rents are paid to me so I pocket the $1m then pay them $100k?

Connie Chan · Answer

Thank you finally 🙏🏽

Can the property manager still communicate with tenants via the app? Have you used the app before?

Connie Chan · Answer

Account Closed I believe the Tellus rental mgmt app supports the situation you're describing. You can have the rents go to your bank account and then just have autopay set up to pay your property manager. (and the property manager can send reimbursement requests for the one-off situations)

Account Closed · Answer

Thank god 🙏🏽 This is the app that I’ve been looking for.

I’ve heard many people have property managers collect rent paid to the property managers bank account straight up then trust them to wire them their cut.

I was thinking you could get scammed that way.

Account Closed · Answer

Thank you finally 🙏🏽

Can the property manager still communicate with tenants via the app? Have you used the app before?

Connie Chan · Answer

@bellman tumasang Yes, I have the rent go to my bank account. You can even set a different bank account per property. When you pay the property management fees to your manager, both you and your manager would see what you got paid because there's a list of all transactions and payments sent through the app. I don't know if there's a demo available.

Chad Hale · Answer

As a PM, I collect all rents, pay all expenses, and distribute the remainder on a monthly basis.