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Rent paid weekly

Discussion in 'Property Management' started by Xsi, 17th Apr, 2016.

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  1. Xsi

    Xsi Member

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    Hi PC Members,

    This is my very first post in PC(long time reader, first time poster)!

    I was hoping to get an answer from any Sydney based PM's on a question I have. I am from Melbourne and have an IP in Sydney. Personally, back in the day I was renting, I have only paid rent monthly in advance. The PM for this IP tells me that the tenant pays rent weekly. Is this common in NSW or is there any rules surrounding this in NSW?

    Thanks in advance.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    No rules on how often rent is paid as long as it is.
     
  3. legallyblonde

    legallyblonde Well-Known Member

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    Weekly sounds really tedious!
     
  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Mine pay fornnightly but I see a lot of benefits to weekly for the landlord. You arent waiting around for a massive payday.
     
  5. Xsi

    Xsi Member

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    Thanks all for the responses. When I queried it with the PM, he mentioned something along the lines of legislation being different between states. When I googled, I found something to the effect that only 2 weeks rent needs to be paid in advance in NSW. It was unclear and hence my post to see if requesting 1 month's rent in advance is uncommon in NSW.
     
  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    Is your question regarding the first payment - 2 weeks in advance? All of the frequency of ongoing payments?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    The legislation requires that lessor can only request that the tenant pay fortnightly (tenant doesn't need to agree). However, there is nothing stopping the tenant from offering to pay on a monthly basis either - just that you can't ask for it to be paid this way.
     
  8. Xsi

    Xsi Member

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    Ongoing payments
     
  9. Xsi

    Xsi Member

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    Ok, that is what I was after. Thanks.
     
  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    As long as the money is paid and it's kept at 2 weeks in advance, tenants can choose how they pay. We have tenants paying odd amounts on different days of the week, allocated from different payments they have. They are not in breach by doing this if the rent still comes in on time.
     
    Ricky Adelaide likes this.
  11. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    It is only 2 weeks rent that is paid in advance when the tenant starts the lease.

    After that they can choose to pay in either weekly, fortnightly or monthly payments.
     
  12. Xsi

    Xsi Member

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    The issue I am having is less to do with tenant and more to do with the PM. PM passes on rent to me only once a month, which often means that the week1 rent is paid to me almost 4 weeks after the tenant is paying them. Not a huge issue, but I still find the delay excessive.
     
  13. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    That is normal procedure unless you specifically ask them to do it mid and end of month.
     
  14. Xsi

    Xsi Member

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    Thanks for explaining that. I am used to rent to being passed on to me less than week after the agent is paid for other IP(paid on monthly cycles) and hence I found this specific arrangement a bit strange. That is all. I can now see how it works in NSW.
     
  15. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    It makes it more efficient and simpler for the agency to pay the bills and process owner payments all in one go instead of multiple times a month.

    Your agent should be willing to process your payment twice a month upon request though.
     
  16. WattleIdo

    WattleIdo renovating Premium Member

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    I have a tenant in Melbourne who pays weekly and I receive it weekly. I'd rather it fortnightly but weekly is quite nice.
    Usually in Sydney the tenant pays fortnightly and I receive it fortnightly - which is what I've requested. Recently, a tenant's pay comes in twice a monthly so I've adjusted to that.
    In regional NSW one agency was very old-fashioned about payments (me to receive once per calendar month :rolleyes:) and I decided it's not worth it. Century21 has since moved into town and they are the ones who pay me weekly in Melb so would expect the same service here.
    There is really no excuse for antiquated payment systems - it reflects a reluctance of the agency to give the best customer service. I would shop around if I were you.
     
  17. ozwanderlust

    ozwanderlust New Member

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    Just a gripe. Agent in QLD said tenants paid rent weekly - so I got net rent payment (supposedly every fortnight) in arrears - but sometimes it has been a hit-and-miss. In comparison, agents in NSW and VIC pay net rent to me monthly no more than 5 days after tenants pay monthly rent. QLD seems to be not as easy to work with as in NSW and VIC.
     
  18. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Hi @ozwanderlust

    That's a problem with your agent, not the state. We disburse twice monthly and are never, ever late! If an agent doesn't understand the importance of cash flow for you as investor, maybe it's time to make the switch. I personally wouldn't tolerate late disbursements.

    Where is your property located?

    - Andrew