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Weekly Rent from Managed agent

Discussion in 'Property Management' started by MBowen, 28th Apr, 2016.

  1. MBowen

    MBowen Active Member

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    Apart from a PM's time or the office assistant's time does it cost money to transfer rental income to a client? I moved agencies recently and they have the client paying weekly direct debit to their trust account. Apparently they don't get the interest from it so I enquired if I could have it paid weekly. The Pm was adamant that fortnightly was the only option. I don't mind paying a couple of dollars a week to have it done, I'm just in the midst of debt reducing strategies. I'd much prefer the money in my offset account.
     
  2. Nick Valsamis

    Nick Valsamis Well-Known Member

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    If they can do fortnightly then they can also do weekly. The only thing is that it is not efficient time wise for them to do it for 1 client only. Depending on bank but each transaction might be 20c or something like that.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    The cost of providing weekly transfers would generally outweigh any savings in interest in the offset account. $1000 net rent will save $0.95/wk @ 5% interest.
     
    Last edited: 28th Apr, 2016
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  4. Xenia

    Xenia Adelaide Property Manager Business Member

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    It's easier to transfer all client disbursements in one go in one transaction. This is the reason it's done on a sepecific day.

    They can do one off disbursements for individual clients but it is a distraction away from the millions of other things office staff need to get on top of.
     
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  5. MBowen

    MBowen Active Member

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    I'm a tight person lol. I've got more properties but they don't pay weekly just thought it might be a way to pay down a bit of debt quicker.

    In all seriousness thanks for the responses everyone. I love the forum here!
     
  6. Marg4000

    Marg4000 Well-Known Member

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    Is it actually fortnightly, or twice a month?

    I can see it would be quite easy to set up twice monthly payments, I.e., 1st and 15th of each month. True fortnightly or weekly would be more complex.
    Marg
     
  7. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Either option is possible.