How long does it take your PM to deposit rent?

[Doug Peters]

We have an OOS property and the property manager is supposed to deposit the rent on the 10th of the month.  

How quick is your rental income deposited?  I didn't realize that the rent deposited in the previous month.

From my PM. "Each month the owner draw is for the previous month. For example, by December 10th we’ll have Deposited your owner draw for November income."

Is this normal?

[Nathan Gesner]

Look at your written management agreement. It should clearly explain when you get paid.

I know many Property Managers that hold January rent until the end of January and then they pay their owners on the first. This gives them funds to pay any bills up until the end of January and it ensures their financial statement covers the entire month of January. It's cleaner.

However, there is no reason for a PM to hold the money an additional ten days before paying you. Once January is closed, there's no need to spend any more of that money so they should release it to you on the first business day.

But it depends on what you agreed to.