Anyone paying PM fee separatly instead of receiving rent net.

I have just been thinking about a few options for debt recycling.

One thing I'm stuck on is the ability of receiving the rent in full from the Property Management agency and paying them the PM in full from a different account (or credit card preferably).

Is anyone paying it separately?

Thanks in advance. :)
 
Sounds like a good idea, especially if you can pay from a LOC and claim interest. Maybe they will do a direct debit setup?
 
Unlikely. at present the agent has some control over getting paid. Take that away and they won't be happy. Take on the management if you want to pay the bills directly.
 
First time in 11 years I was asked by a landlord to pay extra 2 mths management fee in advance in June for tax/loan reason. I said okay but not the norm. Ask you PM for his thoughts.
 
Their software calculates the fees based on the actual amounts received...You are suggesting a process that doesn't involve the software. Sounds messy and expensive. They wont wear that cost and exception. For one fussy owner.

You may be able to negotiate an agreed fee and pay this monthly by EFT but if tenant pays late etc your fee will still be due. Then I imagine you will be chasing the invoice and they will be chasing your money. They currently get paid by being efficient with paying you. Your proposed changes may affect that same process. All for the sake of a small interest deduction on their 8% (?). I estimated $104 extra interest on a $500pw rent....Big deal. Increased tax refund of $30....Its postage stamps.
 
Paul, over a life time of investing it will add up to a huge amount especially when talking about rental income higher than your figure. The wonders of compounding interest.

Salvatore, I hope I haven't started an avalanche for you.... :)

I'll be asking the question, the answer will be interesting. I'm hoping their flash software might be able to do the job. I'll report back.

Thanks everyone.
 
Paul, over a life time of investing it will add up to a huge amount especially when talking about rental income higher than your figure. The wonders of compounding interest.


Look to real savings not the rats and mice - change your super fund to one which charges a lot less in management fees rather than a bloated retail fund (unless you have direct access to a wholesale fund which may be better).
 
Scott, I've had that in place since I was 16. :)

Based on $500/week rent and 4.8% interest rates my sums have been telling me the interest bill in Year 10 is just shy of $1000. That's with that rent figure not increasing and the interest rate staying at a historically low rate.

Are my sums ok? It's worth a single phone call I think.
 
For an NRAS property we have the management paid out of the State portion of the NRAS rebate each year.

Less hassle and worked out cheaper for me. Doesn't help with the debt recycling though.
 
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