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Who pays your bills?

Discussion in 'Property Management' started by Jmillar, 13th Mar, 2016.

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Who pays your bills?

  1. Property Manager

    39.4%
  2. Me

    54.5%
  3. I refuse to pay bills

    6.1%
  1. Jmillar

    Jmillar Well-Known Member

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    I've always paid my own strata, water, council and insurances but I've now got 5 properties (and still buying more) so was thinking of getting my PM's to do it.

    Who pays their own and who gets their PM to do it?

    Are there any negatives of having your PM pay it, that I should be aware of?

    I suppose it won't affect cash flow much. Do PMs pay bills the day they're due, or will they pay them before this date? I usually pay bills on the very date they're due (or schedule them to be paid on this date).

    Cheers
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Some person that I have never spoken to in Bangladesh - all outsourced ;)
     
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  3. bob shovel

    bob shovel Well-Known Member

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    We might use the same guy!? :)
     
  4. Bran

    Bran Well-Known Member

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    A bit of both.

    You miss the chance to pay it with borrowed money if the PM pays it directly (not that I have worked out how to do this)
     
  5. bob shovel

    bob shovel Well-Known Member

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    Step 1 call pm
    Step 2 say "look after these champ"
    Step 3 pina colada!
     
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  6. Jmillar

    Jmillar Well-Known Member

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    Why pay for this and not get your PM to do it?

    I'm interested to know your reasoning and how you structure it... Do they do anything else for you as well?
     
  7. Bran

    Bran Well-Known Member

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    Thanks Bob.
    I don't know how to use borrowed money to pay expenses. That few thousand per year could be reducing my home loan
     
  8. Ambit

    Ambit Well-Known Member

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    I like getting it all on one statement at the end of the financial year and just hand that to my accountant.
     
  9. bob shovel

    bob shovel Well-Known Member

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    Can't you just use an equity loan (or similar? Credit card? ) with a debit card or direct debit to auto pay the bills?
    I like the pm doing it for ease
     
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  10. Bran

    Bran Well-Known Member

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    I'm thinking a specific credit card will be easiest, and pay it monthly from a loan.
     
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  11. bob shovel

    bob shovel Well-Known Member

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    Yeah that sounds good. Can you do mine to?
    Why not debit card? No fees etc?
     
  12. Xenia

    Xenia Adelaide Property Manager Business Member

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    If you want some stats from a pm agency. We pay about 98% of the water invoices for clients, that is they come directly to our office. We prefer to do this for water so that we can invoice tenants their share at the same time.

    We pay other invoices, council rates, etc for about 70% of our clients. 30% prefer to pay it themselves.

    It's a service offered by pm companies, some people take it, some don't.
     
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  13. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I probably pay about 90% of all invoices. Of the ones that prefer to pay themselves, they're usually doing it by credit card to get points.

    Only thing I'd want to make sure is that you have a good PM to start with, who will withhold money if required to ensure you don't get charged interest on late payments.
     
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  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  15. bob shovel

    bob shovel Well-Known Member

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    @Bran when you make sense of it let me know! o_O
     
  16. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    It is a service included in the management fee that you pay so many landlords do opt for the PM to pay these bills. Its all itemised on your statement too so it is good in that sense. Your PM should have a good system in place so that these bills are paid before the due date (and if for whatever reason there is not enough rent in the trust account to cover then they should contact you to "top up" the funds) however if you are charged a late payment fee then most agencies I know of do actually pay that difference themselves, unless it was an error of the landlord. Hope that helps, this information is based on my experience in QLD however I think its generally the same elsewhere.!
     
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  17. Xenia

    Xenia Adelaide Property Manager Business Member

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    Once the bills are entered into the property management CRM system, money should be withheld until they are paid and as MPP said above, landlords get calls to top up to ensure that no penalties are applied for late payments if required.
     
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  18. Chilliblue

    Chilliblue Well-Known Member

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    Our PM's pay for all invoices except insurance and land tax which I like to pay direct.
     
  19. tavinium

    tavinium Well-Known Member

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    My 2 cents...

    Water bills to the agent, so they can handle the tenant water usage invoices.
    All other bills to you = debt recycling. +1 :) See Terry's tips for details.
     
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  20. TMNT

    TMNT Well-Known Member

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    I pay my bills, a bit more work for me however:

    1. I get the credit card points
    2. I get an extra month or two to pay it using interest free period
    3. not a fan of PMs taking money out of my accounts (even if its a valid charge)
     
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