When should PM deposit rents?

[Chad C.]

When should PM deposit rents? I have a new PM company that deposits rent the following month. So rents on the first of October aren't received until the first of November, and I still haven't received rent from October, and its the 5th. My last PM was an individual who deposited rents a couple times a month but he left the field. Their reasoning was to make sure checks don't bounce, which takes what, 3 days. I am trying to be patient with them because they seem to be a larger more established company, and I expected them to be better, but there have been a few red flags.

[Ryan Murdock]

@Chad C. What was your initial arrangement when you signed on with them? Holding back rents is not that unusual. I used to do it for most clients (bigger ones excluded) unless I had access to an operating account of some type for them. Fronting vendor bills for 1000+ managed units can get expensive and PM's are not banks. People love to think it was a ploy to get rich on the interest (LOL....) but most of those funds were held in non-interest bearing accounts. And with today's rates it really would be negligible anyways.

It is the 5th of the month now but there have only been 3 business days so far. Depending on how big and/or adequately staffed the PM is they may not have completed all the October billing yet. Regardless, you and the PM should have initially agreed to a date the following month by which you'd have received the previous month's disbursements.