Rent Management Strategy

[Uneeq Khan]

Newbie here. Got some questions about rent. How is rent handled when you have a property manager? Does tenant pay the property manager and he takes his cut, sets up expenses reserves, pays P&I, insurance tax escrow, and then sends you the net profit? Or does the tenant pay the property manager, he takes his cut, and then sends rest to you, and you set up exp reserves, pay escrow etc, and hold net profit? Or does the tenant pay you directly and then you pay the property manager, and handle the escrow and Reserve? Or is there something else I'm missing? Are there regulations how rent can be paid? Can they just venmo/paypal/zelle it or does it have to be a check?

[Nathan Gesner]

@Uneeq Khan I disagree. We all know there are good tenants and bad tenants. So how does one find a good tenant? Do you just take the first one to come along and hope that they turn out good? Of course not! Finding a good tenant is never a guarantee but you can dramatically reduce the risk by screening them. The same is true of property managers. You can jump around until you find one that eventually turns out to be good, or you can educate yourself on what a good property manager looks like, screen multiple options, and then choose one that suits your needs and has an established reputation. Of course it's not a guarantee, but screening potential property managers will greatly reduce the likelihood that you will have problems so commonly referred to in these forums. I would also point out tthat property managers are typically licensed by your state which means they have a responsibility to you and your money. If you find a property manager that is a member of NARPM or IREM then they are held to an even higher standard.