All Forum Posts by: Sam Dalton

All the free rental software, like the one I use, hold the money for 4 to 5 days like you said. The only way I've found to get around it is one of two things.

First, switch to a more expensive "premium" rental property software or start accepting cash/zelle/etc. No thanks.

Second workaround I use is what someone said, push the mortgage payments to a later date. I do all mine on the 15th just in case and this works out pretty well. All of the loans I've had have the option to do this. Sucks on the delay but that's price we pay for free software.

Quote from @Sam Dalton:

Quote from @V.G Jason:

You can't manage the lack of cash flow between rent clearing and note payable date?

This is going to get really hard man. 

 I can manage

 Then what's the point of the original question?

I'm not sure why you're not paying your bills on time. It is your job to make sure you have funds to pay your mortgage on time. If you literally do not have the money to pay your mortgage without the rent payment, you NEED to sell because you are only one large repair or one eviction away from going into foreclosure. 

Quote from @Sam Dalton:

Ignore the stupid posts.

I use professional software and it takes three banking days to process all electronic transactions. It's some BS thing instituted by banks so they can collect interest for a few days. 

There are a few other methods that could deposit funds on the same day, but I wouldn't sweat it. Move your mortgage due date out or hold some reserves so you always have funds for the mortgage, then replenish it when your payment clears.

@Sam Dalton if you have 12 months of reserves, why are you bothering us with this question?

Funds clearing banks is part of the business!

Can't wait to see what you post when a tenant NSFs a rent payment to you...

Are these not regular mortgages? I was pretty sure all US mortgages were due on the 1st but not late until the 15th by federal law?

As mentioned above. You should have at LEAST 3 months of expenses in reserves. What’s your plan when the 1st comes and goes and they don’t pay rent? Just skip that month’s mortgage payment?

You can't manage the lack of cash flow between rent clearing and note payable date?

This is going to get really hard man. 

Cash, Zelle, Venmo, in todays day and age are you really asking this?

I'm not sure why its taking you so long.  It seems awful long for a rent check to clear (I'm assuming you're getting paid via check).  Here are a couple of suggestions to speed things up:

1.  Have the tenant do an electronic transfer.  Electronic bank transfers are much, much faster. 

2. If you and your tenant have different banks, this may add an extra day or two.  However, it *should* still be faster than 5 business days of processing.

3.  Either you or your tenant open a bank account with the SAME bank.  This should significantly speed processing times.   Depending on the bank, at most this should take 1-2 business day.

4.  If the tenant insists on using a check, then take the check to the same bank that is issuing the check and have it cashed.  Then take the cash and deposit to your account.  This should be immediate.

I hope this helps!