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Mid month Pay Out (disbursement)

Discussion in 'Property Management' started by fullylucky, 13th Oct, 2016.

  1. fullylucky

    fullylucky Well-Known Member

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    Just wondering for PMs, how many (what percentage of your clients request mid month pay out disbursement?)

    If you have one or two clients that request this is it more efficient to just do it for all your clients?

    or is the majority of your clients only require you to do end of month pay out?

    Do you sometimes tell them you can but it will cost extra?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    We allow both midmonth and monthly. I know some agencies who do weekly or even daily.

    Wouldn't cost the client any extra, though the bank fees can be annoying. Paying about $100 a month in bank fees at the moment.
     
  3. fullylucky

    fullylucky Well-Known Member

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    If you do mid month would you do it for all clients or only the ones that want it mid month and the rest end of the month?

    If you do it for all that would be extra cost per transaction? So I'm guessing you keep track of which ones want it and which ones don't and transfer their money accordingly?
     
  4. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Most of our landlords prefer 2 monthly payments however they are all given the option of either once or twice a month and it doesn't make any difference at all on our end! The system we use is great and its just the tick of a box for either once or twice monthly.

    We also don't charge any admin or disbursement fees which many agents do however so I guess if someone is being charged for example $2.20 per disbursement then this would either be a once or twice a month cost the landlord is being charged.

    Jodi
     
  5. fullylucky

    fullylucky Well-Known Member

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    yeah imagine you are only getting $28 of commission from $360 of rent then having to pay $70-80c or $2.20 out of your own pocket just so the owner can save 40c ~ 50c worth of interest (for having their money a bit earlier)
     
  6. fullylucky

    fullylucky Well-Known Member

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    When you are doing the midmonth and end of the month payments, does the software you are using generate (give you) an ABA file for you to use in your online multi transfer?
     
  7. fullylucky

    fullylucky Well-Known Member

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    For an owner, if you planned to transfer the mid month payment and you did it, what if later on in the month there is a payment that needs to be paid, for example, a rates or water bill with the money in the trust account but you don't have enough? What would happen in this situation?

    Would you never allow this situation to even happen because you always plan ahead so don't do a mid month transfer if you think you don't have enough?

    Or because you always Pay Bill as soon as you get them and don't have to wait until the last day it's due; you have plenty of time to transfer in the following month?
     
  8. fullylucky

    fullylucky Well-Known Member

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    For mid month payments, do you have to keep in mind e.g. there will be an admin fee that gets charged at the end of the month so you subtract that amount from the amount you plan to send to the owners? or does your software keep track for you?

    Do you do mid month payments manually one by one for each owner or does your software do it all for you?
     
  9. larrylarry

    larrylarry Well-Known Member

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    Fullylucky are you a PM now?
     
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  10. fullylucky

    fullylucky Well-Known Member

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    I self manage but I'm developing a software for PMs to turn the tide so the power is back in the hands of PMs and not tenants...

    Looking for pms to trial the platform and give feedback.
     
  11. larrylarry

    larrylarry Well-Known Member

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    Didn't know you write softwares. Maybe an App?
     
  12. fullylucky

    fullylucky Well-Known Member

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    Yeah, well it's available on all devices right now so you can use your ipad, iphone, android computer to do your trust accounting. You don't need to install any software because it's all cloud-based. Anytime anywhere.
     
  13. Shady

    Shady Well-Known Member

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    Yep, we pay owners weekly and on the odd occasion when requested at other times also. The software produces an aba file and it's then just a matter of running it through online banking and bingo. We don't charge any extra but do incur a $10 charge everytime we pay owners..(I think it's $10 anyway).
    I think Macquarie Bank offer an integrated process with the software but we're with CBA so have to do it manually....oh and we dont charge admin fees. I pay it on personal properties other agents manage for me but we do not charge it. I cant justify charging it....I actually cant justify charging any other fees other than the one management fee. While I'm on a rant...One agent listed in their proposal that they charge 5% just to collect the rent and a further 2.5% to manage the property...wtf do they think managing the property is!! ...rant over
     
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  14. BKRinvesting

    BKRinvesting Well-Known Member

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    Sounds like a hell of a deal!
    I'll collect my own rent but they can do the rest for 2.5%!
     
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  15. fullylucky

    fullylucky Well-Known Member

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    If say you didn't collect any rent for a certain month (e.g. October) maybe due to no tenants renting the property (vacany), or maybe the tenant paid alot of rent the previous month and this month they are late on rent and it just happens you didn't collect a single cent for the month...

    Then you don't have any money to "draw from" does this mean you can't pysically charge any admin fee (expense) + gst?

    In this situation, do you morally not charge the owner the admin fee? as well as pysically not able to charge the owner? or do you try to be tricky and charge them next month when there is some money in the kitty? (double charge admin fee (twice))
     
  16. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I don't think any software program can do this, unless it's a software that changes the laws.

    Re admin fee, only raised when disbursement made. I don't charge admin fees, but generally speaking you cannot charge a fee for a service that wasn't provided.
     
  17. fullylucky

    fullylucky Well-Known Member

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    The platform I am currently developing will (at least try to). It won't change the law but it will give more power back to the owners and PMs and reduce the power of bad tenants. It will tackle the issue of asymmetric information in the rental tenant market and also empower PMs and strike fear into the hearts of tenants and deter them from being bad tenants.:cool:
     
    Last edited: 11th Nov, 2016
  18. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I don't think you can "reduce" their power without changing the laws. After all, the HAVE the power because of the law. Added to that someone who is a bad tenant isn't going to buy into the "fear", instead they may get further aggressive if they're that type of person.

    I'm intrigued though, I always am. I like seeing things in play, but I am also exceptionally blunt at times and firmly believe the legislation would need to change before anything else does.

    I'm the type of person who can be fluffy and friendly, or a complete b*tch if I need to be. I can tell you that generally neither of these approaches (or any others) helps when you have a bad tenant. Instead you spend months and countless hours on lost sleep, stress, paperwork, VCAT and after it's all said and done the owner is out of pocket a fortune because it takes a minimum of 6-8 weeks to get the lowlife scum out of the property.
     
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  19. fullylucky

    fullylucky Well-Known Member

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    Thing is there's asymmetric information, not sure if you understand this, PM's don't know if a tenant is good or not until you have them as your tenant.

    Reference checks don't work because think about it, if you call their current agent, if they are a good tenant the agent would provide false intel so you wouldn't want to sign them up to the lease. If they are bad terrible tenants then the agent might also provide false intel as it's in their best interest to get rid of them (have them sign up with you.) and there's also the get your mate to say good things about you and vouch for you and pretend to be an agent.



    The platform I'm trying to develop will overcome asymmetric information, if the tenant knows you are using the platform they will be too **** scared to do s**** things as well as being in arrears because it will be detrimental to their future prospects of finding accommodation for renting that will accept them.
     
  20. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I do understand asymmetric information. Which is why I ask for proof, not just verbal. Ledgers, payslips etc. I also check that the "private landlord" is in fact the owner and not a friend, same as work references.

    I also remember agents that give me bull**** references, the tenants might actually be fantastic, but if that particular agent has given me a false reference the tenant is unlikely to get the property. I also rely on first impressions, if someone presents poorly, is rude, lets their kids run around the house etc. it's highly unlikely they will be approved for a property I manage.
     
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