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Updated over 2 years ago on . Most recent reply

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Nikhil Agarwal
  • Investor
14
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Flow of Funds with Property Management Companies

Nikhil Agarwal
  • Investor
Posted

QQ on how property management companies work! 

Typically, do the tenants make payments to the property management company (and then the property management company forwards the funds to us (owner of the unit)? Or does the check from the tenant directly go to the owner and the property management company is just responsible for collecting the check and depositing it into the owner's bank account.

  • Nikhil Agarwal
  • Most Popular Reply

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    Scott Trench
    • President of BiggerPockets
    • Denver, CO
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    Scott Trench
    • President of BiggerPockets
    • Denver, CO
    Replied

    For me, the tenants pay the property manager, and then the funds move to me. The funds are held in escrow by my property manager, and disbursed later in the month to my bank account. 

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