What to do with PM that has not disburse the rental

Hi, recently I got my townhouse rented out. My PM had informed the tenant will pay 1 year's rent upfront with lowering of rent. I calculated, the rent will sit in my offset and achieve similar decrease on my interest servicing, I agreed. It's been a month and the PM had not deposited the rental yet. Who can I turn to for help? Can u request that the PM makes up the lost for the interest savings?

 

Have you spoken with the pm or the licensee?

It is arguable that the rent isn't due for every other period so they agent can't release the rent to you due to the risk that you might spend it and it not being recoverable if there was a break lease issue. Also that if the rent was paid to you they would need to deduct or retain their management fee.

IMHO release shouldn't be the agent's issue, it is your issue. You may have an issue with paying the management fee but this shoul sit in their trust account and drawn down at each disbursement and statement issued.

 

Speak with your PM and find out why it hasn't been paid. I have received 6 months in advance before without any problems, the management fees could easily be deducted. The 12 months in advance was for your benefit not the agency's.

 

Have you called the PM and asked if they have received the rent?

 

Wouldn't jump to any conclusions until you've spoken to them.

Maybe they tried and bounced back? Maybe they forgot? Maybe they're refusing? Maybe they've vanished to the Bahamas? Whole heap of legitimate and illegitimate reasons - no point speculating on here til you actually speak to them.

I doubt it'd have anything to do with fees as Scott / Hugh said, as software will calc this automatically.

 

The software will calculate the fees but will also disburse it prematurely to the agent - this is not due until it's due.

 

Certainly hope there is no ill intent......

Since its always the landlord that's going to lose out

 

Interesting, prob just due to the holiday break period

Got to wonder though, "if" the agent went down to the casino and ended up bankrupt, you haven't received payment, so is the 12 month lease valid ?

Either you or the tenant lose ?
The "casino" wins..........

 

The interest earned by the real estate trust accounts is syphoned off by the state governments to fund fraudulent misuse of trust accounts - OFT property services compensation fund.

 

Each case of rent being paid up front that I have seen has been distributed to the landlord at the next rental distribution. Just with the timings of xmas in the mix, maybe they did their December end of month distribution just before xmas and before your rent was paid? Perhaps clarify with the agent what will be disbursed to you at January month-end.

 

Just wondering... the tenant indicated intent to pay 1 year rent up front, but is that actually what transpired, or did they end up paying only one month and now your stuck with them on a lower rent for the year?

 

They had paid up and apparently, the funds did not go through due to some process and the PM breaks for holidays. Still it's a one month delay.

 

I would expect to get the payment conditional on the lease being signed. Not at some time afterwards.

 

PM should send it if you instruct, get on the phone and straighten out, forget about the small interest loss.