Could you believe

[fernfurn]

Could you believe a well established real estate agent wouldnt know the difference between charging by the month against charging by the week. I have a call in to clarify this, but it looks like our agent in qld where tenants pay every 2 weeks, is only charging the rent by 4 weeks equal a month. If I am right we are down about $1160 - would I be able to claim the re pays this back?

 

[BayView]

It depends on what the tenant is paying fortnightly.

He may be paying half of the monthly payment, or one 26th of the yearly payment, which means he is not paying more, and you are not missing out?

 

[wobbycarly]

But if the tenant is paying every two weeks, won't you still get all the money you are owed? Or do you mean the REA is paying you 4 weeks rent per month?

Tenant = $250pw, pays $500 every 2nd Monday
REA = Pays you $1000 pm (forgetting fees)?
REA should be paying you $1083.33 pm?

 

[craigb]

they talk slow up there too!

 

[fernfurn]

Say rent $250 pw, payment to us should be $1,083.33pm less fess and expenses
I assume tenant knows rent is $250 pw and pays $500 every 2 weeks in advance which goes into trust account.
RE is paying us $1,000 at end of month

 

[wobbycarly]

And when you asked your PM they said...?

 

[cu@thetop]

they talk slow up there too!

You go on and git you smooth talking southerner city slicker.

 

[Luv2Travel]

Say rent $250 pw, payment to us should be $1,083.33pm less fess and expenses
I assume tenant knows rent is $250 pw and pays $500 every 2 weeks in advance which goes into trust account.
RE is paying us $1,000 at end of month

Just a minor thing, but I thought montly rent would be calculated as $250/7x365/12 = $1,086.31.

If your tenant is paying $500x26=$13,000
You are receiving $1,000x12=$12,000

The agent must have surplus left in the trust account. Sounds like a very basic mistake for a professional property manager to be making! If they can't do this, I wouldn't feel confident with them doing anything else.

 

[lura]

I don't think you should worry

This doesn't sound like a major issue - most property managers do not know the difference from weekly rent and conversion to monthly rent.

However, they would be using a trust accounting software that automatically charges the tenant and calculates the rent - so you are not being ripped off.

If you want me to double check this for you. pm me - I have an economics/accounting background - will be able to pick out discrepencies if any.

 

[dan c]

Say rent $250 pw, payment to us should be $1,083.33pm less fess and expenses
I assume tenant knows rent is $250 pw and pays $500 every 2 weeks in advance which goes into trust account.
RE is paying us $1,000 at end of month

It seems to me that the PM is just paying you what the tenant pays to them.

There will be two months where the tenant pays 3 fortnights in the month (say 1st, 15th, 29th of month). Then the PM will pay you $1500 for those two months.

(10 x $1000 + 2 x 1500) / 12 = $1083 per month.

 

[Chris75]

It seems to me that the PM is just paying you what the tenant pays to them.

There will be two months where the tenant pays 3 fortnights in the month (say 1st, 15th, 29th of month). Then the PM will pay you $1500 for those two months.

(10 x $1000 + 2 x 1500) / 12 = $1083 per month.

I agree that this is the most likely scenario. I thought it was normal.

 

[urban cowboy]

It will be on the lease document whether the rent is paid weekly, fortnightly or monthly.

Check that first, then slap the agent if they aren't collecting properly.