How long to get rent?

C

caterpillar

Does your PM have a set day to pay your rent into your account? Or is it paid when they get it?

I recently switched and took 2 properties to a new PM, as my old one was a good manager but very soft on increasing rents to what I wanted. This new guy sounded good, talked himself up, gave me a good deal.

However, first month's rent was paid 14th Jan, and I still don't have it?! When I called the office, they said "oh, the book keeper had the day off sick, you'll get it next week" - and seemed to think that was okay! Now it's a long weekend and I won't get it til at least Tues 29th!

How long is too long to wait for your rent?
 
Most agencies would do it monthly or bi-monthly on set scheduled days!

It is not time effective to transfer money to landlord's the minute it reaches the trust account and it also causes a problem of not enough funds in the account available to pay bills and maintenance!
 
caterpillar said:
Does your PM have a set day to pay your rent into your account? Or is it paid when they get it?

I recently switched and took 2 properties to a new PM, as my old one was a good manager but very soft on increasing rents to what I wanted. This new guy sounded good, talked himself up, gave me a good deal.

However, first month's rent was paid 14th Jan, and I still don't have it?! When I called the office, they said "oh, the book keeper had the day off sick, you'll get it next week" - and seemed to think that was okay! Now it's a long weekend and I won't get it til at least Tues 29th!

How long is too long to wait for your rent?
Click to expand...

Caterpillar, i too had a PM that was taking approximately 15 days to send through the rent. I naturally assumed that the tenant was paying late or by cheque. After some questioning I confirmed, the tenant was on direct debit for their monthly payment.

Apparently their software system was causing issues which was delaying the rent being processed. There were other issues as well as the late payment of rent, which finally forced my hand and I moved PM's.

Most of my IP's have the rent paid within 5 days, unless tenants are late in paying of course.
 
My PM deposits rent on approximately the 1st and the 15th of the month. That is one reason why we went with that company - the rent is paid directly into our offset account so we get the benefit sooner. Depending on weekends etc the rent can be a couple of days late.

Naturally, if the tenant pays just after we have been paid then we have to wait until the next deposit - but it is only a fortnight, not a month.

There is no way that a PM can remit to you as soon as the rent is received, most have a rent roll of a couple of hundred houses and they would do nothing else apart from bank transfers.

Caterpillar, check with your PM as to when they remit the rent to you. If it is calendar monthly, then you will get it in a week or so.
Marg
 
Average 150 houses on the rent roll.


Average rent of $ 300 p.w. or $ 1,300 pcm.


A delay of 14 days on average between when the PM receives the rent and when they pay the outstanding bit (after they've ripped out all of their revenue) to the LL.


Short term money market rates of conservatively 7% p.a. (or 0.02% per day)


That equates to an extra 150 * 1,300 * 14 * 0.02 = $ 546 pcm.


Hmmm, only 6.5 K p.a. for the whole office over the year. I've never done the calc before, but that seems like chicken feed to me.


When we employed PM's, getting 88% after 2 weeks seemed good. Doing it yourself, you get 100% straight away.
 
Bazza said:
No dazzling, you get 100% after 2 or 3 weeks as well. But, it's still more.
Click to expand...

Wha' ??

The reference point for the sentence I wrote was "how long after the tenant has paid their rent does the Landlord receive it"....just like the original question.

If privately held....it's 100% and it's immediately.

If PM'd.....it's less and it's delayed.

One of us must be smokin' the left handed tobaccy....:)
 
Dazzling said:
Average 150 houses on the rent roll.


Average rent of $ 300 p.w. or $ 1,300 pcm.


A delay of 14 days on average between when the PM receives the rent and when they pay the outstanding bit (after they've ripped out all of their revenue) to the LL.


Short term money market rates of conservatively 7% p.a. (or 0.02% per day)


That equates to an extra 150 * 1,300 * 14 * 0.02 = $ 546 pcm.
Click to expand...

barking up the wrong tree there Dazz... all rent monies must be held in a non interest bearing trust account. the itnerest earnt goes to REBA to provide first home owner assistance.
 
rent monies must be held in a non interest bearing trust account

WHat does tha mean ? if you mange porperties privately what complicatiuons do you have to go through ?
 
Dazzling said:
Cheers Ausprop, I didn't know that.
Click to expand...

yeh, the temptation of all that money in a general bank account would be too much for the majority of mere mortals, so it is almost treated the same as deposit funds. and if your trust account gets overdrawn you will have some serious explaining to do.
 
it's a jailable offense to dip into the trust account...and trust accounts must be audited at least every 12 months (here in NSW anyway).
 
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