Time frame for property management payments?

Question

Hey gang, just curious what industry standard is or your experience for a PM company sending rent proceed funds?

Marc Rice · Answer

@Tyson Hill

Mine pays me on the 20th

Davartay Miller · Answer

Can't speak for the industry but only for our company. We typically start paying our owners around the 15th of the month and finish up around the end of the month. @Tyson Hill

Kimberly Langley · Answer

@Tyson Hill

Our company sends out owner proceeds by the 10th or mid month rental income is sent on 25th.

Christine Kankowski · Answer

We pay between the 7th and 9th business day of the month,

Nathan Gesner · Answer

I manage about 400 rentals. Some owners only have 1-2 rentals with no monthly expenses and tenants that pay on time, so they're easy to pay early. Owners with 40+ units tend to have more expenses (maintenance, utilities, etc.) and are more likely to have tenants that pay late, so we try to wait until the majority of funds are received before paying them.

My management contract states I will pay prior to the 15th. We try to beat that expectation.

Nathan Gesner · Answer

There is no standard. I pay between the 5th and 15th. Some property managers don't pay until the first day of the following month, so you would get no income the first month, then on the second month of management you would receive your first payment. That ensures they have the funds available the entire month to pay bills on your behalf, close out the month, and send your payment with a complete statement.

Marc Winter · Answer

@Tyson Hill, you ask a simple question that doesn't really have a simple answer.  We explain to the owners we represent that we do our best to get their payments out on or before the 15th of the month.  (98% of our leases require rent to be paid on the 1st of each month.)

HOWEVER, if the tenant does not use EFT or other e-payment or credit card, and they write a check on, let's say, the 10th of the month, we must wait until that check clears the bank.

So we have informed owners that we will forward whatever funds are cleared on or before the 15th and any funds that clear after that will be posted to their account and sent out the following month.  BTW, we use EFT to forward funds to the owners.

Hope this helps.

Scott M. · Answer

There is no standard for the industry.  Varies so much you may be able to find managers that pay on each day of the month from the 10th forward.  Also varies greatly on what class of homes you have / they have and the income level.  Lower income / class c/d will almost always pay later then a/b because the tenants are often late so no point paying out early.

Also, once you get in the swing with the company it doesn't really matter as they pay out on the same schedule.

Drew Sygit · Answer

We do a company sweep on the 15th and last day of each month.

Many old-school PMC's still pay once/month at the end of the month because they aren't embracing technology.

Joe Funari · Answer

@Tyson Hill My PM here in the Dallas/Ft. Worth area sends proceeds between the 15th and 25th of each month. This month I received them today the 22nd. But my experience if you plan by the 25th of each month you should be OK.

Time frame for property management payments?

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