When does your property manager send the rent?

Question

If you're using a property manager, when do you typically get the rent?

This is my first time using a property manager, so I assumed they send the rent as soon as the funds clear. Let's say the tenant pays on time then no later than 3 business days after that the property manager can transfer the funds. That's maybe 3 to 7 business days in total.

Ultimately, your contract should spell this out, but I'm curious about what's typical.

Theresa Harris · Answer

usually around the 15th of the month. This is for both a single family and apartment-they are treated the same.

Greg Scott · Answer

In single family, it is pretty typical to send it to you at the end of the month so they can use rent to cover any repairs during the month.

In apartments, the funds should be directly deposited into the owners bank account and the property manager just processes the paperwork.

Michael Smythe · Answer

Account Closed we're one of the few PMC's that pay twice/month. We do batch sweeps on the 15th and last day of each month.

Some old school PMCs that haven't converted to PMC-specific software pay up to 45 days after receipt - on the 15th of the following month.

Richard F. · Answer

Aloha,

PM's typically are processing rents for many properties...perhaps hundreds. The only way to efficiently do so is in batches. They also need to wait for those deposits to clear, before actually disbursing any of the funds. They also pay outstanding invoices first, then disburse the remaining funds minus any reserves or tax payment holdbacks. Depending on their standard grace period and late fee process, it is easily mid month before they can start disbursing.

V.G Jason · Answer

I have some that send it out on the 10th of the month(or the nearest business day), then some that send on the 15th of the month(or the nearest business day). Haven't really seen it differ between those two between about 10 property managers.  All of this is on the contract.

Hamp Lee III · Answer

Between the 10th to 14th day of the month.

Account Closed · Answer

The things you mention are spelled out as assumptions in the OP. Ignore that the contract would spell the max time (to avoid people replying to check your contact), and also let's assume the tenant pays on time.

That said, I'm not sure if holding the rent a month is invisible, but it's not immaterial. Let's say you would net $5k / month in rent after management fees. If your PM holds it for an extra month, you're giving them a $5k loan indefinitely. Let's also say a Chase savings account pays you 4.5% compounded annually, that $5k loan is $460 over a two-year rental, and then you multiply that by 50 or 100 doors.

There might be good reasons to hold it a little while like to settle expenses, although with technology-powered platforms savvy PMs could probably often pay the same day as the funds are cleared. There's a counter-incentive to market this, of course.

William Lynam · Answer

We send client funds out between the 1st and 5th of the following month.  This allows for all rent monies to be collected in the given month prior to distribution.

Allan Smith · Answer

Pm should hold rent through end of month so they can float payments to vendors. If they pay out rent immediately they can't pay for repairs. They would have to request an owner contribution every month which we can all agree would be dumb.

or, when you sign up with them, you can send a repairs deposit. This muddied the waters.

When does your property manager send the rent?

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