Owner Rent Proceeds Payment Processor

4 Replies

I have a small (less than 10) door property management company and my customers desire direct deposit for rental proceeds. Does anyone have a company that they like?

My current setup is:

Tenant payment via Cozy

Auto Deposit to Escrow at Bank

Bank offers Online Payments of Invoices (Proceeds to Owners)

This creates a 7-10 day (minimum) processing delay between tenant payment and owner receipt of proceeds.

Cozy is designed to manage your own rentals, not those of others. If you insist on using it, you will probably have to figure out how to export the data to Quickbooks and then produce reports from there.

If you plan on managing for others - and particularly if you plan to grow your business - then you should consider moving to professional management software like Buildium, Rent Manager, etc.

Originally posted by @Jeremy Kaplan :

@Nathan G. Yes, I agree but it seems like many of them have much higher monthly minimums or fees. Any recommendations for quality systems with less up front cost as we continue to grow?

It's definitely going to cost more. I think Buildium is probably the cheapest option that I'm aware of.

 

Regarding the timing of owners getting their payments - historically, most PMC's only pay owners once/month and typically at the end of the month or the beginning of the next month. This was because PMC's wanted to make sure tenant's checks didn't bounce and it took time to enter everything into accounting ledgers manually to determine how much to send owners.

Currently, software has made all this easier, but PMC's still need to wait at least 5 business days for ACH payments to clear.

So, most PMC's still only pay owners monthly and in batch - meaning no matter when a rent payment is received, all owners are paid on the same day. 

We pay our owner clients twice monthly - once on the 15th of the month and again on the last day of each month. On each payment date, we back off a week to avoid NSFs, and send whatever we have received up until that point. So, if a tenant pays later in the month, the owner may still get their payment that month, instead of waiting to the 15th of the next month.

You may want to research and think this through a bit more and then perhaps reconsider and reset the expectations of your clients.