If tenants behind in the rent does the PM still pay me?

[churchado]

This is probably wishful thinking on my part...

My tenant is currently behind in the rent and have been issued a notice by the PM and the PM has advised me they will be catching up shortly (although it has now been about 3 days and still nothing). I am due to be paid by the PM today for rent collected, so if they have not collected anything do they still pay me (and chase up the arrears themselves?)

Even as I type this I anticipate a lot of laughter and negative replies..

 

[wylie]

No rent going into the agent's account, no payment to you.

They most certainly will not pay you and then chase up the arrears themselves.

 

[Propertunity]

....so if they have not collected anything do they still pay me ..

In a word, NO. The agent only passes on to you, what they collect from the tenant less their commission. No rent collected = you get nothing, as wylie says.

 

[Ed Barton]

Even as I type this I anticipate a lot of laughter and negative replies..

You have provided the forum with much giggles.

But given you already expect to know the answer, but hope it will somehow be otherwise I doubt you will get many negative replies. Good luck!!

 

[Scott No Mates]

It depends upon what is written into the management agreement - if the agent has agreed to pay you regardless of having received payment, then yes there is an obligation for the agent to forward these funds.




Unfortunately this is not written into any management agreement that I have ever seen.

 

[S.T]

It depends upon what is written into the management agreement - if the agent has agreed to pay you regardless of having received payment, then yes there is an obligation for the agent to forward these funds.




Unfortunately this is not written into any management agreement that I have ever seen.

Be interesting if you tried to write it into one and got some slack PM who didn't check and just signed!

In all seriousness, imagine a PM business that gave this type of guarantee. It would be a niche and I wonder how successful it would be! I'm predicting something like 15% management fee's to cover