Rent checks made out to Property Manager Co.? Or made out to Owner?

[Kyle Kelley]

Hi all, 

I've been scouring the archives to try and find this answer but I have yet to see it - I'm hiring a property manager for my out of state investments, so should I have my renters make checks out to the property manager / property management company name? Then once checks and cash are collected the property manager takes out their fee and sends me a check from the PM company for the remainder of the balance? 

Or should I have the rent checks made out to me (the owner) and cash forwarded to me either in form of money order or check in the amount of cash from the PM company, and then I get billed and make a payment to the PM company for their services? 

I don't mind doing either, I just want to make it as smooth and easy as possible each month so wanted to gather some input as to what you feel would be best.

Thanks!

[Beth L.]

@Kyle Kelley The property management company should handle the collection of rents and everything else. They should be able to tell you how all of this will operate. Have you already chosen a company?

I haven't yet had to use a property manager for my residential rentals, but my understanding is that they will collect rents, security deposit, handle maintenance calls, etc. and apply everything to your account. You should get a statement each month itemizing all income and expenses (including their fee to you) and they will direct deposit the funds to you.

But I am sure that someone more familiar with using PM could steer you better.