Any luck in receiving Gross Rent from PM?

myhillg - I glad you found someone flexible unlike the poster above who sounds very stuck in their ways.

I'd be open to doing it if requested under certain circumstances. Eg if you didn't pay the fee invoice on time you'd be banned.

Was it you that requested monthly time frames? Given that you want to keep money in your offset for as long as possible for the interest reduction to kick in, wouldn't longer be better, like quarterly? I would suggest even annually like you do for prepaid interest, but run the risk of too many changes during the year.

 

I'd be fine having a client pay me direct for the management fee, but i wouldn't want to manually draw up an invoice every week/fortnight/month.

I'd have it invoiced quarterly, bi annually or annually.

I don't see a risk from my end, because I could with hold the amount myself until paid.

 

What would be the best way to approach a property ,manager to do this though? I can't imagine the extra paperwork would be the seal on the deal. Might be best to approach the owner as they'll be getting the money in the business account earlier?

 

The owners money position won't change, there'll still be a monthly disbursement.

Just email them and ask them and explain why. They can only say yes or not.

 

I simply asked like this:

"Would it be possible for me to prepay the rental management fee every month? or every 3/6 months etc? Rather than the management fee being taken out of the rent?"

 

If you mean quarterly in arrears then yes, but I wouldn't expect a PM to wait for payment . Actually it's better to pay monthly rather than pre-paying as you incur the cost at the same time as the additional income is earned and therefore will immediately offset the non-deductible loan.

- No interest is still better than deductible interest.

 

Managed to arrange with my PM to prepay fees every 3 months. At first they mentioned that it was not possible because of the software but after further discussion and explanation from my side they agreed.

 

@myhillg has started a small chain reaction For my IPs this speeds up debt recycling by 40-50%, I can't believe this isn't standard practice! Or maybe it is, and we're just a bit slow to catch on...