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rentalgranny

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Posts: 7
Reply with quote  #1 

I am concerned about how long an agent, after collecting on the first of the month , hold your rental income before depositing into owners bank account. I have an agent that deposits on the 10th of the month. This last yr. there were times I didn't receive the rent monty until the 15th.  Is this legal?  Am I getting a run around when the agent tells me that the bank also holds a direct depost for 2 more days?

PatseChi

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Posts: 79
Reply with quote  #2 

why are you using an agent? - seems like you're getting the run around and ripped off.


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Patse
rentalgranny

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Posts: 7
Reply with quote  #3 

Thank you for replying, Patse.  I have an agent since the last 3 renters has damaged my rental to the tune of $29000.  This way, they visit the house periodically and make sure the rent is on the 1st. I am of the age that I am slowing down and its worth the money I pay the agent.

PatseChi

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Posts: 79
Reply with quote  #4 

ok - understand; you should have a contract drawn up with payment schedules: all collected rents rec'vd before of by the 1st deposited no later than the 3rd day of the month, all rents rec'vd from the 2nd to the 5th deposited no later than the 7th, etc. have them sign a copy and you keep a copy.


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Patse
OHlandlord

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Posts: 3,714
Reply with quote  #5 

Why doesn't your contract address this?  Our management agreement states that rents are sent to owners on the 10th of the month.  This gives us time to collect all the rents, including late rents, and be sure all checks clear before we send the funds to the owners.  Your contract should say something similar.

rentalgranny

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Posts: 7
Reply with quote  #6 

All of your comments are in the contract.  The rental agent holds it for 5 days and during the next 5 days they post it to accounts (they don't deposit any of the rent checks until the 10th.)  I disagree with this if you look at last years calendar the 10th is near the end of the week which holds up the automatic deposit into landlords account until Monday and funds aren't available until Tuesday. I don't like getting the rent payment on or after the 15th of the month. So I have a contract, an agent and the rent money coming in after a 5 day hold with the agent and 5 days to get it posted and a 2 day hold for the automatice deposit after the agent deposit ALL rent monies on the 10th.  Do I make myself clear as to why I don't get the rent any sooner?

OHlandlord

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Posts: 3,714
Reply with quote  #7 

I don't get it.  You signed a contract allowing the management company to deposit rents on the 10th. If the bank holds them after that, or 10th happens to be on a Friday, that isn't the management company's fault.  You agreed to the 10th.  If that is what the company is doing, they are upholding your contract with them.  If you disagreed with them holding rents until the 10th, why did you agree to it in the contract?  Renegotiate the deposit date with the management company.

rentalgranny

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Posts: 7
Reply with quote  #8 

Thank you all for replying.  I truely appreciate it.  I have had a few arguments with my agent and have heard a couple of the excuses.Let me give you what the agent has told me... we hold the check for 5 days, for fear it will bounce (how woulds they know if they didn't deposit it???) then it takes 5 days to post it which gives you the 10th when they deposit the rent monies.  Look at the calendar they are pretty smart since most Holidays fall on a Monday and the 10the quite often is a Thursay for Friday.  IF its a Thursday and they deposit it on the the 10th (THurs.) the bank again holds it for 2 days which is Friday and Monday which means the deposit into my account will be Tuesday.  I have asked if they could change it and it was an absolute no.  I am really frustrated about this and I know my choices and will act on them appropriately.  But thanks for your comments.  

rentalgranny

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Posts: 7
Reply with quote  #9 

I want to expound on my recent comment.  My agent is terrific and don't get me wrong...I like him and his great personality.  Its just that I don't feel as though there is much thought as to what the landlord goes through when waiting and waiting on the rent.  If the agent is soooo afraid of a returned check that also is in the contract that the renters have to pay for the overdraft or the full amount of the rent.. So what is he afraid of!  His excuse is..well if the check is drawn (Bank of America) on an out of town bank that is the reason we hold it.  WRONG!!! Automation has come into play...2 days for the check to clear and there are other ways to place a hold on that check.  Sorry, I am so skeptical but I was a banker before I retired and I know what I am talking about.  Maybe now you'll understand why I question all of this.   

Marytmary1978

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Posts: 445
Reply with quote  #10 

How are the tenant contracts written? 

 Ours is "due on the 1st, late after the 5th"..  Very much like most of my mortgages -- "due on the 1st, late fee applies if not paid by the 10th"

 

 If that is the case, you can bet that some of the renters do not pay until the 5th.  Even if your renters do pay by the 1st or second, the PM is still processing rents coming in.  takes 2 days to clear so that puts it out to the 7th at the earliest.  You can not expect the PM to treat your one property as a special case, and check yours separate from the rest.  Does not sound unreasonable for them to have the 10th as the day they post a check to you. 

 

That said- Why don't you have it set up for the PM to just transfer the money to your account?  Our PM that we use does that-- and it works well.  then you do not have to wait for a check from them.

 

If the timing of the payment from the PM is your only complaint-- I think you have little to complain about.  (We manage most of ours ourself-- but have a PM for two units  that are 3 hrs away.)  If you can't handle the stress of waiting those extra days, sell the property and put the proceeds into the money market or CD at 1% -- I'm sure that will make up for the time you feel you are losing out on the rent LOL!

 

 

rentalgranny

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Posts: 7
Reply with quote  #11 
Thank you Mary and Ohlandlord.  You are both right...I should have considered when signing the agreement.
Who would have thought besides the rental agent that the 10th would fall on a Thursday or Friday,numerpus times, huh? I have to live with it for another year but will negociate on the next one. If nothing else I will consider all comments before signing again. Living on a fixed income is what is causing all my problems with the rental agent.Thanks for all your comments.
OHlandlord

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Posts: 3,714
Reply with quote  #12 

Sending rents to the owner on the 10th is the norm around here.  Rent checks are cut to the owner by the end of the day on the 10th with our rental management company.  This allows the tenants with grace periods to pay (as Mary said), and for those who pay late.  It also allows rent placed in the bank at the beginning of the month to clear (and not bounce).  And while automation is prevelant, it does not occur in all banks and credit unions.  Just a couple of months ago, it took a credit union 15 days to tell me a check had bounced.  So not every bank is automatic yet.

rentalgranny

Registered:
Posts: 7
Reply with quote  #13 

Thank you for responding.

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