Daily/Weekly/Monthly Rent- where has my accounting gone wrong?

Discussion in 'Property Management' started by Jamesaurus, 2nd Jan, 2020.

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  1. Jamesaurus

    Jamesaurus Well-Known Member

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    Scenario:
    - Form 18a for a QLD property of mine has rent paid $430.00 per week, paid every Tuesday of each week.

    - I keep track of my income/expenses in an excel document which lists these Monthly, and the income component I had factored in is $1868.45 per month.

    - My property manager has advised me
    "Your rent is calculated on a daily basis in the Trust account. At $430.00 per week the daily rate is $61.43. As you are being disbursed at mid and end of month The trust account will forward any rent captured throughout this time and the tenants paid to date will show on your statement. This is why sometimes you may get 2 weeks, other times three."

    - The last six months however I have only been dispersed:
    $1,750.00
    $1,750.00
    $1,750.00
    $1,850.00
    $1,720.00
    $1,725.00

    Am I getting ripped off or is my maths/accounting need improvement?


    Any insights/help would be much appreciated :D
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    $430 x 52 = $22,360
    divide by 12 = $1,863.33
    you are out there slightly - unless it is a leap year?

    Have you factored in the agent commission?
     
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  3. Jamesaurus

    Jamesaurus Well-Known Member

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    Yep thanks I was slightly out there for the monthly equivalent,

    To rectify, the list of six is the gross income (not the net amount dispersed sorry).
    $1,750.00
    $1,750.00
    $1,750.00
    $1,850.00
    $1,720.00
    $1,725.00

    This still leaves approx $110 a month most months on what I thought I was going to have gross income?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    There are 365 days/yr not 52 x 7 days (364 days). The monthly rate is $430/7*365/12 = $1868.45/month.

    However, rent is paid weekly in this instance not monthly, a 4 week month will equate to $1720 & 5 weeks is $2150.

    The tenant pays a consistent amount on a weekly basis so the system should not be disbursing indiscriminate amounts but consistently either 2 or 3 week periods depending upon the amount received IMHO.

    There is on benefit to the agency to withhold any rent as the trust account doesn't get interest and the agent can't claim commission if they haven't disbursed the rent.

    If they are holding funds, are these applied to expenses?
     
  5. Trainee

    Trainee Well-Known Member

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    Those gross amounts arent multiples of the weekly rent, which seems strange?
     
  6. Jamesaurus

    Jamesaurus Well-Known Member

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    Thanks Scott,

    I believe if they do hold back funds they do this for expected expenses but I havent experienced this often.

    I think your second sentence ( the 4 weeks= $1720) is roughly shown on the "income" side most weeks and aligns with the 6 months gross income i listed above.

    I just checked and the first month of the tenancy was big though on the gross income side (rent was 425 a week then):
    Rent - Paid from 28/12/2018 to 10/01/2019 (Effective 10/01/2019) $850.00
    Rent - Paid from 11/01/2019 to 17/01/2019 (Effective 17/01/2019) $430.00
    Rent - Paid from 18/01/2019 to 24/01/2019 (Effective 24/01/2019) $430.00
    Rent - Paid from 25/01/2019 to 31/01/2019 (Effective 31/01/2019) $430.00
    Rent - Paid from 01/02/2019 to 07/02/2019 (Effective 07/02/2019) $425.00
    $2,565.00

    I suppose big months like this throw out the values I was expected as the $1868.45 per month is supposed to be what Im expecting if it was paid monthly, vs reality paid weekly but sent to me monthly.

    I really just wanted to check my agent wasn't under charging the tenants and that I'm getting the income in that I'm supposed to according to the lease. I think the difference is that my excel spreadsheet is based off gross income monthly vs the REA monthly document base their gross income off the daily/weekly rate?
     
  7. Trainee

    Trainee Well-Known Member

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    Why is 1 feb to 7 feb only $425? And the jan weeks are $430?
     
  8. Jamesaurus

    Jamesaurus Well-Known Member

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    I have no idea tbh? Shouldn’t have anything to do with feb being shorter month as it’s over a 7 day period.
    The more I look at this the more confused I get!
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Looks like they have dropped the rent by $5/wk, you'll need to get the agent to clarify what's going on.
     
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  10. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Ask your agents for a ledger that covers the entire tenancy, this should also show rental increases/decreases and will help you to determine if you've been paid all the rent you're due. Post it up here if unsure.
     
    Michael Mitchell likes this.

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