Payment of rent into your account

Good Evening Everyone!

Before I speak to my property manager I would like to know how many days I should expect from when tenant pays rent and having it deposited into my account?

 

It should specify this on your management agreement.

Most PM software works best with End Of Month disbursement to owners.

 

Thanks @D.T. but I can't see anything that states when payment would be made to me. Is there some standard. Are you saying if tenant pays beginning of the month that the owners would get the money end of the month?

 

This is often the case - unless you specify that you want a mid-month & end of month (if the tenant pays fortnightly) the agent will do one disbursement.

Don't worry, the agent does not get any interest on the funds in the trust account, this goes to the government.

 

Most agents pay a few days after rent is due. I couldn't really understand in this day and age, why they would wait until the end of the month.

 

Call/email your PM and ask.

Cheers

Jamie

 

Ask them, many want $$$ if you do more than one transfer......well they have to pass on all them nasty netbanking fees ya know.

 

You can negotiate the periods so long as there is something to pay you in those periods.

We have several properties with certain agents so they disburse monies mid month and end of month. No extra cost from the agency to do so.

We have another agency with only one property and because that tenant pays monthly, money is disbursed at the end of the month. Paying at the end of month (subject to funds being available) would be the standard.

 

my tenants pay fortnightly, but agent pays strata, water, council during the month from that money...disburses whatever remaining at the end of the month

 

Hi @pinewood

If you are able to mention which state your property is in, someone on the forums can likely point you to the page on the management agreement that shows you frequency of payments to landlord.

Let's say the tenant pays 2 days before rent roll via EFT. If that takes 3 days to clear into the property manager's trust account, it wouldn't arrive in time for distribution on rent roll day and you'd have to wait till next distribution. That might help explain some of the delays you are experiencing.

As others have mentioned, most often the rent roll is distributed at month-end. Your agreement may also state mid-month and end of month.

 

Ours are paid every 15 days so the most you have to wait is 2 weeks.

If you require urgent payments ask for a one off disbursement to your account, not a huge deal for most agencies.
If you don't ask you will fall into their routine monthly or bimonthly disbursements.

Hoping that makes sense.

 

A couple of reasons
a) Its cleaner / simpler to do them all at the same time (Process varies a bit depending on which software is being used)
b) If you have bills to pay like council, water, repairs etc, chances are there will be enough to pay those

That said, the SA management agreement (and I assume other states) has a box where you specify the frequency. So choose whats best for you.

For my own personal properties that are with PM's in other states I prefer monthly myself. Back when I was in the employee world I used to get paid monthly as well, seems easier for me on budgeting to know how much is coming in each month. Each to their own though

 

When I first started, I specified every fortnight. But then I realised they were charging me a $5 admin fee every single time they posted/emailed me the rental statement so I changed it back to EOM.

 

My Victorian Agent pays any rents paid into my account the following day. My Queensland Agent pays on the last day of the month. Both suit me as I know exactly when my rents will be paid into my account and I can budget accordingly.

 

Mine is paid monthly but one of my tenants now pays monthly on the 29th. So depending on the office's accounting day some months I get no rent for that property.

 

Thanks everyone.....property is in VIC. I was just wondering what the norm is. Still waiting for property manager to get back to me. From your responses I must be doing ok. Rent is due 22 and I have had money in my account varying from 4-7 days but nothing so far yet for this month. The only agreement I have is a standard REIV form and there's nothing about payment and when.

 

@pinewood: Any update please?

 

On the page where you put your bank account number, it should also say frequency there? The REISA one we use does.

 

Hi @Pumpkin, no issues at the moment as since my original post I am being paid almost immediately the tenant pays (1-2 days) so can't complain. Looks like it depends on the agency you're with.

 

Thanks @D.T. I don't seem to have a copy. I filled out a form with bank account details but it was just a form they created themselves and I don't recall that info being on the form.