Property Manager paying my property tax

[Bofan Xu]

Everything when it is time to pay for property tax, my property manager would pay the property tax for me using money from her own account, and then transfer the same amount from the rental property business account to her own account. It is kind of strange to me that she does not use the rental property business account to pay for the property tax directly since she is authorized to use the money in my business account. Should I be worried?

[J Zev J.]

@Bofan Xu - Maybe. Did you ask her why she does it that way?

[Bofan Xu]

Originally posted by @J Zev J.:

@Bofan Xu - Maybe. Did you ask her why she does it that way?

She said it is more convenient for her to do it this way. I guess I could just start paying property tax myself for now on just in case but I am still curious if it is standard practice for property managers to do something like this.

[J Zev J.]

@Bofan Xu - I don't think it's standard practice but she might have a good reason to do it. I've always paid the property tax myself. It's normally a once (or twice) a year payment if it's not included in the mortgage payment. Have you verified with the city/county/state the payments that she is making are going to the correct place for the correct amount? 

[Kenny Dahill]

@Bofan Xu, the risk is on her.  She essentially loans you the money to pay taxes, until she reimburses herself.  It's odd, for sure.

Perhaps her software system doesn't allow her to easily pay taxes and/or cut checks.  Do you happen to know which system she uses?

Or, maybe she wants all the credit card points!  Free plane tickets, baby!

[Peter Tverdov]

We don't pay owner bills like water, taxes or mortgage for this very reason. Just do it yourself IMO. 

[Basit Siddiqi]

@Bofan Xu

I have several property managers and none of them pay the property taxes.

Sometimes property taxes are paid by the mortgage company. Sometimes they are paid by the individual. 
how would the PM company know which is which for different properties.

It is just easier for the owner to pay for the property taxes.

[Tameka Brown]

Hi, It is a risk to her but I don't think you should be worried. Maybe it is more continent for her to pay the bills through her account. However, I don't suggest that, it is a easier paper trail for you if she pays any bills through your business account.