How long does it take for rent to be deposited in account?

Hey everybody

For those with investment properties using a property manager, how many business days does it usually take for them to transfer the rent into your bank account?

My current tenant always pay on time every month (i have checked), and yet my property manager always takes at least 5 business days to deposit it into my bank account. So if there is a weekend in between, it often takes 1 whole week for them to even initiate transfer of the money!

Is this standard for all property management agencies? Out of curiosity.

 

Actually have no idea when the tenants pay - that is the property managers job. I have multiple properties with the one manager so doubt the tenants all pay on the same day. However the property manager makes transfers reliably each fortnight.

Same deal with other properties not in the above example.

If it were not happening like that I would likely be seeking a different property manager.

 

It is in the tenancy agreement which states the monthly anniversary date on which rent falls due.

 

Our PM always pay the net rent on the last day of the month. Same for my clients - both Reso and commercial.

Makes it easier for me to manage cashflow.

 

I get fortnightly - Thursdays. I believe its based on funds at Tuesday evening.

Each PM should have a process. Ask them.

 

Each agency will differ on their payments. Some will make payment twice a month (e.g 1st & 15th of each month) some fortnightly, some weekly ect
So the it would be best for you to check how & when your agent makes payments and knowing when your tenant pays each month (if always on time) you would be able to know when payments would be made by the agent

For example if your tenant is due to pay rent on the 20th of each month and the agency only makes payments on the 1st there would be a delay from the agents end from tenant payment (20th) to agents payment (1st)
There may also be time for the funds to clear in the agents trust account before they make payment to you
Once payment is made by the agent it should only take 24 hours to hit your account. Whats the delay time between the statement issue and reaching your account?

 

Thanks for the info. Well I get the rent paid monthly and the statement at the same time, which is usually a week after the rent is paid. Both properties' tenants have been very good, reliable and on time. The agent's statement and rental appearing in my account always appears to be virtually on the same day, so I know the actual bank transfer time is really just overnight.

 

Definitely quite normal for Agencies to pay Monthly, though many vary. In my case I currently pay twice monthly. There are some who will pay fortnightly, weekly, twice-weekly and as often as daily, but I have never had a client ask for that service. I feel like we have better uses for our time rather than over-administrating.

Funds transferred before 4:00pm should be in your account the next day (regardless of bank). Funds do transfer on Friday and you should receive them on Saturday, but you will not see funds transferred on Saturday or Sunday until Tuesday.

 

Thanks for all the info guys! Very helpful to know what happens elsewhere.
I am totally fine to get paid the rent monthly since the tenant pays monthly. My gripe with my current PM is that it takes like 1 whole week delay for them to then transfer it across to my account. I feel like 2-3 days delay at most would be more reasonable. It just seems excessive delay.

 

Most would not be transferring after an individual tenant pays monthly. They would be transferring their whole tenant roll payments monthly (or fortnightly if the agreement was such)
There is generally no relationship about WHEN the tenant pays merely a dictated day of the month that all disbursements to all owners are made.
Your tenant might pay on the 1st of the month and if disbursements are made on the last day of the month the money will sit in their trust account for almost 30 days

 

2nd and last friday of the month for the most part

 

Agencies are able to disburse at assorted intervals (weekly, fortnightly, twice monthly or monthly), the disbursement day depends on what you have agreed upon in your Form 6, however this can be altered in writing, contact your PM and ask the question I am sure they will be more than happy to disburse in a more suitable time frame.