How late is it ok for a property ma to deposit the rent?

Question

My property management still has not deposited the rent into my account that they received on October 1st.

Every month I have to call them and ask to deposit it into my account.

I know the tenant is paying on time because on the 2nd or 3rd of each month I email and ask if they received the rent and they always say yes.

But then they dont deposit it, they should take their sweet time...

Honestly, all of my tenants that I manage myself deposit the rent on the 1st of the month. But the property management company does not...

So far, I am not liking this property management company...How late its ok to deposit the rent?

Mary Jay · Answer

Thank you so much guys!!!

Patricia Steiner · Answer

Everyone so far has referred you to your contract.  I would like to offer something else:  you don't have to accept the terms of somebody else's contract.  You're the client.  If their standard practice is to deposit into your account on the 15th for rent collected on the 1st - and that seems like a lot of float time to you, don't accept that condition.  I have a hard time with turning over a property to a PM in full.  While I value what they can offer to a landlord who doesn't want to self-manage, it's important that you decide what services you actually need for them to perform and those you don't.  Do take another look at your contract and have a discussion with your PM on what is working for you and what isn't.  It sounds like communication on their end isn't working.  Again, you're the client.  They need to make it work for you.  Best...

Nathan Gesner · Answer

It's important to read/understand your contract. If the PM Agreement says you'll be paid by the 15th of each month, then expect to be paid by the 15th of each month. If the Agreement doesn't specify when you'll get paid, then you've learned an important lesson and will look for that next time.

Review your Agreement to see if it's defined. If not, ask your PM to define it so you're not bothering them every month and becoming a nuisance that they don't want to communicate with.

The PM needs time to pay bills, review accounts, generate statements, etc. If they manage a lot of rentals, this takes more than one day. Throw in weekends and holidays and it can be a week or two.

Drew Sygit · Answer

@Mary Jay

1) Should be in your contract. If not, get it added.

2) Inconsistency is a sign they are unorganized, which is NOT a good sign for overall consistent service.

We pay our owner clients, in bulk, on the 15th and last day of the month. Yes, we're one of the few that pays more than once/month.

May be time to interview for a new PMC!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

JD Martin · Answer

It should be stated in your contract the date when it will be deposited. We manage our own properties but two common dates I've heard are by the 15th or 30th of that month.