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Rental Payments

Discussion in 'Real Estate' started by Jayar, 11th Nov, 2005.

  1. Jayar

    Jayar Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    130
    Hello,
    Can someone give me some advice, please?
    My tenant pays rent fortnightly in advance to my PM. For example, on the 6th October, she paid for the period 6 Oct to 19 Oct. Then, on the 20th, she paid for the period 20 Oct to 2 Nov. One of my better payers !!
    My PM here apparently does the accounts monthly, and on the 1st Nov I receive a cheque for 4 weeks rental for the period 6 Oct to 2 Nov.
    It seems in this case that my tenant always pays in advance, but I always seem to receive payment in arrears.
    Is this normal practice, or should I be requesting my PM to forward rent to me when received, rather than witholding 'til the statement's sent at the start of the following month?
    Thanks in advance,
    Jayar
     
  2. ani

    ani Member

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    11th Aug, 2005
    Posts:
    20
    HI Jayar

    That's how all mine work. I get paid on the last day of the month for rents received in that month.

    That is all the PM has received, as I see it. I can't see how they can pay you anymore:)

    Cheers
    ani
     
  3. Jayar

    Jayar Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    130
    Hello, Ani,
    No, it's NOT the amount of money that concerns me....it's the FREQUENCY (or infrequency) it's paid to me.
    With another property of mine, when rent is received, it's paid into my account straight away. Then the monthly statement arrives at the end of the month, detailing such monthly payments.
    That way, the tenant pays in advance, and I receive rent in advance.
    Sounds fair to me !!!!
    Or, Ani, am I expecting too much? ;)
    Jayar
     
  4. ani

    ani Member

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    Maybe:)

    All of mine get paid monthly but I know a lot of PM's offer a twice monthy deposit for a fee. Maybe you could ask them if they do that.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
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    Location:
    Sydney, Australia
    It works however you negotiate it with your PM. You can have the money paid to you as often as you like.

    As ani said, payment at the end of the month is normal - any more frequently does add a degree of administrative burden that you are likely to end up paying for in extra management fees.

    If you get paid the money into your account straight away, how does your PM pay for expenses incurred at your properties ?

    By the way - the money you are owed should be sitting in the agency's trust account, which does not normally earn interest. There should be no financial benefit to the PM for holding on to your money.
     
  6. Jayar

    Jayar Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    130
    Hi, Sim,
    He still deducts his commission, as usual. But instead of monthly, it's bi-monthly. All usual expenses such as rates, insurances etc are all paid by me, he has no regular outgoings. He has authority to expend up to $500 for any urgent repairs, but as a new place, it hasn't been needed in the past 13 months or so. I guess the time will come, though :)
    Thank you all for your views, and I guess I'll leave things as they are.
    Jayar