PM standard practices?

[Piffin Yonnies]

Four weeks ago tenants moved into my IP in Brisbane which is with a local REA, has been a long time since I’ve used a PM. Thing is I’ve not seen any paperwork or money as yet? PM called week prior to tenants moving in to confirm rent and term of lease and then two days after the date they were due to move in he called again re tenants having problem with the dishwasher which was sorted out and that is the last thing I have heard.

So my questions are:
What are the normal procedures re paperwork between landlord and PM when tenants are found?

At what time would you normally expect rent monies to be passed on to the landlord (PM has my bank account details)?

I’m well aware of the paperwork and formalities when appointing a PM, just not up with the procedure once they find tenants.

Thanks for any help, Piffin.

 

[landlubber]

PY,
We deal with quite a few PMs and there is no standard system that any of them follow. Most pay us once per month, one pays us twice per month. Some pay us on the same day each month. Some pay us "a couple" of days after the rent is paid to them.
With new tenants some send us the leases to sign. Some just OK the tenant with us verbally , and then sign the lease on our behalf.
Call your PM and ask them exactly how they work. They are working fo you remember and should be only too happy to answer all your questions. "Normally" , if tenants moved in 4 weeks ago, you should have a copy of the lease and your first months rent (minus letting fee of course ) by now.
LL

 

[Pamela Yardney]

Piffin
There are no standard procedure. Every office has its own procedures.
We have invested heavily into computer systems to ensure effective comunication.

By now you should have a letter explaining that your property has been leased together with your copy of the lease and an ingoing condition report. Some PM's will also give you digital photos of your property.

With regards to payments of rent - each agency has a different procedure. many still pay rents once or twice a month.

Modern computer systems should allow your PM to pay your rent directly into your bank account . We make payments to our landlords as soon as the funds clear, they are of no benefit to anyone sitting in our trust account.

Property Management is a lot more than collecting rents. That's why I don't think you should choose a PM on price (commissions). You are paying for personalised service - Ask your PM what his procedures are and what you should be expecting.

 

[Peter_Tersteeg]

Piffin,

I'm supprised that you didn't receive leasing paperwork for you countersign along side the tenants. This has always been the standard arrangement when my agents (in Melbourne) have written a new lease.

Also, if the agent has received rent from the tenant, you should receive the rent shortly afterwards, allowing time for postage, money to clear in the bank, etc.

It may be possible that the agent does not have your correct banking details.

 

[abcdiamond]

PT Bear

Some agents sign it on behalf of the Landlord. Mine did, they even put the lease in the name of the Real Esate Agent. The Tenant didnt even know who we were!

We didnt get a copy of the lease document until much later. Too late to tell them about their error.

 

[miket]

PM's holding out!!! Yeh right...

Everyone's right here but overall I would be ropeable!

None of this by the book stuff when my rents aren't forthcoming.

If they're local, get down to their office, sack 'em and ask questions later.

If far away; With computer systems these days or by telephone, drop them an email demanding satisfaction or call them and blast them. After one month they've made a monkey out of you. Follow my advice and they won't try that on you again.

I know from experience, I'm tough-as when they try to pull something like that on me.

Otherwise I'm a nice sedate bloke-ask me Mum

 

[Piffin Yonnies]

Big thanks to everyone for their input, been a great help as is always the case. Will be on the phone to the PM tomorrow.

Thanks again Piffin.

 

[strangep]

Hi guys

Forgive me father for it's been a long time since I last posted....


Just wondering, for those of you who are having their rent paid to them once per month by their PM, are you having...

4.33 x (weekly rent - agents fees/charges/etc)

paid into your account or are they only paying...

4 x (weekly rent - agents fees/charges/etc)

and making some other adjustment??

I'm having some trouble with our PM at the moment whereby they're only paying us once per month (same date each month) and they're paying us 4 times the net weekly rent. By my calcs they should be paying 4.33 times the net weekly rent. This is resulting in a shortfall of about $75 per month so it's a significant amount over a 6 month lease.

Any replies gratefully received.

Cheers
Paul

 

[Pamela Yardney]

Originally posted by strangep
Hi guys


Just wondering, for those of you who are having their rent paid to them once per month by their PM, are you having...

4.33 x (weekly rent - agents fees/charges/etc)

paid into your account or are they only paying...

4 x (weekly rent - agents fees/charges/etc)

and making some other adjustment??

I'm having some trouble with our PM at the moment whereby they're only paying us once per month (same date each month) and they're paying us 4 times the net weekly rent. By my calcs they should be paying 4.33 times the net weekly rent. This is resulting in a shortfall of about $75 per month so it's a significant amount over a 6 month lease.

Any replies gratefully received.

Cheers
Paul

Paul
You are right. The calender monthly rent is definately not the same as 4 x the weekly rent.

Take that up with your PM straight away

 

[JustAMum]

Now Mike,
Its not like you to get hot under the collar (at least I would like to think so).
Are you getting enough sleep dear, and eating right and not going out partying at night too much?
I've always admired your firmness and determined nature, but isn't it results that you have always been after?
If these people aren't performing don't you need to tell them first what they should be doing - then yell at them once they fail the second time if it makes you feel better. Wouldn't it be better to negotiate with them - perhaps a discount on there fees for their poor service for last month, then if they don't perform by next month you sack them (after you've organised who your taking the account to). That way you get a 'small' financial compensation, a chance that they may pull there sock up and perform as you wish, and a chance for you to check out the competition and make a considered decission. There are so many people out there that need a little hand to pull their socks up. Its a pity when we come across them, but we have to look after our own interests first.
I'm so glad to here from you, if anything I am a bit too wishy washy and its good for me to hear from you - to help me get a bit tougher.
Hope to hear from you again soon.
Just a Mum

 

[JustAMum]

Paul,
When your father wakes up tomorrow morning I'm sure he will forgive you - but I don't think there is anything to forgive. Don't be too hard on yourself - you are such a good and loving boy.

You are quite right with your calculations, and you need to take this up with your PM. You may find however that they are forwarding on the money that they have received from the tenant, and for the last period (6 months?) it has worked out that they have only received 4 weeks rent in during that month.

Especially you need to know is the tenant falling behind in rent?
Also perhaps they could draw you up a 'budget' for what rent you should receive each month, based on the contract and/or paying habits of your current tenant. This budget should be for the length of the current contact. If the paying habits of your current tenant is not up to the contract then PUT PRESURE ON THE PM to put pressure on the tenant to conform to the contract.

However, due to tenancy laws there will be a limit to what sort of pressure the PM can put on the tenant. However a good PM should be able to do something to put on some pressure. You may also want to consider allowing pressure to be put on by your PM suggesting that (if the tenant isn't performing) that there contract will not be renewed.

I'd love to hear how it goes- keep us posted.
JAM

 

[darryl]

Hi Paul

The way my PM's are paying me is if the month has 4 week in I get 4 weeks rent but when the month has 5 week I receive 5 weeks rent and charges, this month is one of those good ones 5 weeks.

Regards
Darryl

 

[strangep]

Thanks all for your replies.

Have taken it up with the PM and am awaiting their response.

Will let you know the result.

Cheers
Paul