Tenants paying rents to PM seperately

Discussion in 'Property Management' started by wjw, 13th Nov, 2018.

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  1. wjw

    wjw Well-Known Member

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    Hi,

    Is this common?

    My IP is being managed by one of the bigger agency. Rent was late in the first month (understandable - getting account number and bank transfer setup, etc.). Third month, it was late again by a few days and when I asked the PM, I was then made aware that the tenants are transferring their rents individually to the PM. The PM said that they are still awaiting the third person to make the transfer. The third person called them up today and said he made a transfer to the wrong account (old real estate agent, by mistake).

    My question is whether the arrangement of having rents separately transfered individually by tenants to the PM is a common and acceptable thing? And if so, are there any implications (risk, breach with regards to insurance, etc.) that I should be aware of?

    Thanks.
     
  2. TazCaz

    TazCaz Well-Known Member

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    Not sure where your property is, but as a former tenant in Melbourne up until the end of last year, my housemate and I always transferred our shares of the rent individually.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    No different to the tenant making partial payments or the tenant's mother/brother/milkman/bookmaker/rev etc making payment on their behalf. It is rent, who cares where it comes from however it must be on time.

    The excuse that they paid the wrong agent is BS.
     
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  4. wjw

    wjw Well-Known Member

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    Thanks all.. Good to know that its not uncommon.

    I just hope this lateness doesnt become a norm/habit.

    On another note, do PMs usually notify the owner that rent is late and what actions have been done from day 1 of rent being late? Or is that too much to ask?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    If they make part payments, although there is an outstanding balance, the rent has been paid so you can't commence an action until they owe more than one complete period
     
  6. thatbum

    thatbum Well-Known Member

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    I don't think this is true, or at least not in all states.
     
  7. ShireBoy

    ShireBoy Well-Known Member

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    I just went through this myself. Noticed on my online portal that the rent was "in arrears by $xxx" since last wednesday.
    I gave the PM the benefit and decided to ride it out and see what happened. I figured if it was a genuine cash shortfall, they might not have been able to pay on Thursday, or Friday. Then it's the weekend, and take another day to clear.
    This morning all appears normal and I got my rent.
    I'm not going to bother ringing the PM about it. I figure they'd use similar stall tactics. Remember they're trying to protect themselves, too. Keep up the appearance that they're doing a stellar job.

    I dunno. Maybe I'm too nice. Maybe others would be on the phone from day 1.
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

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    Different every state. 1 day in WA, 2 periods in SA, etc
     
  9. wjw

    wjw Well-Known Member

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    Do you know what is it in Vic? Cheers.
     
  10. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Unless it's rooming accommodation agreements, all tenants on the lease are jointly and severally liable for paying the rent on time, so if it's late eg. falls more than 7 days in arrears or whatever your states time frame is, the PM should be issuing a breach notice to them all as the 'tenancy' is in arrears, not flat mate x or y etc.
     
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  11. Sharyn C

    Sharyn C Active Member

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    More than 14 clear days in arrears
     
  12. Sharyn C

    Sharyn C Active Member

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    You would be surprised it does happen.
    We recently received a rent payment from a tenant who moved out 9 months ago!! Yes she paid the wrong agent
     
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  13. Lil Skater

    Lil Skater Well-Known Member

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    No problems with tenants paying separately (reasonably common) so long as it's all in by the due date. I've also had people pay the wrong agency, happens.

    Agent should contact you after a few days, not necessarily day one as generally it's just a delay in the transfer, weekend etc.
     
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  14. Tom Rivera

    Tom Rivera Property Manager Business Member

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    The Agent needs to make it very clear to them that it is entirely their responsibility to ensure the total of the rent is paid on time by the tenancy. If one person does not pay on time- they are ALL responsible, avoid blame games in these situations. You can't put pressure on the individuals who aren't carrying their weight like the people they live with can.

    If rent is only a few days late it's personal preference as to whether the agent advises you or not, and often depends on the person and situation. e.g. Long term tenant who are otherwise great but refuse to get their head around paying a couple of days of extra rent to stop themselves showing as falling 1-3 days in arrears each week, as they paid Friday night and we don't receive the rent till Tuesday. Owner is aware it happens and rent is paid like clockwork, so we don't tell the owner every week.

    In your situation, it's a new tenancy and potentially a pre-cursor to further problems, so you and your agent probably want to set boundaries right now.
     
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