Property Management company practices

[Larry Thornton]

Hi all,

I currently have a property management company (withholding their name out of a little respect) that I am unsatisfied with due to their requirement to withhold funds until the last day of each month. 

In my case, management fees and/or vendor payments are withdrawn by mid-month but they refuse releasing funds until the very last day.

Is that practice normal? I’m considering a different property management company but don’t not want to go from bad to worst, if this is common practice.

I’ve been with them for approximately 5 months and this is my first rental. 

[Drew Sygit]

Quote from @Larry Thornton:

Hi all,

I currently have a property management company (withholding their name out of a little respect) that I am unsatisfied with due to their requirement to withhold funds until the last day of each month. 

In my case, management fees and/or vendor payments are withdrawn by mid-month but they refuse releasing funds until the very last day.

Is that practice normal? I’m considering a different property management company but don’t not want to go from bad to worst, if this is common practice.

I’ve been with them for approximately 5 months and this is my first rental. 

 Just 20 years ago, it was very common for PMCs to pay owners in the middle of the month - for the previous month's collected funds.

Reasons were: waiting for tenant checks to clear, accounting often done on spreadsheets and just overall length of time to receive & process bills.

Technology has sped up all of this.

We actually do two bulk payments to owners each month, the 15th & last day of each month, for whatever tenants have paid to that date - in the current month.

So, guessing your PMC is either:
1) Still using spreadsheets as they haven't invested in PM software.
2) Still following the mindset of, "this is how we've always done it".

Some questions that will clarify:
1) Do they have a website and how much functionality does it have?
2) Do they offer an Owner Portal and how much info is there?
3) What do your monthly Owner Statements look like - amatuer spreadsheets or professional-like?
4) How are they paying you monthly - paper checks, ACH or wire?

If you want to DM us their name & website, we'll take a private look.