As a rental property owner or real estate investor, there is nothing better than checking your bank account and having a large deposit hit your account, and you’ve done nothing other than own a piece of property. That is what it’s like for rental property owners around the world. It’s like when a stock pays out a dividend, and you weren’t expecting it. It’s an exciting feeling! As a rental property owner using a property management company, you need to know when your rental property income will be clear into your account. This way, you can time your expenses on the property, such as your mortgage, utility, insurance, etc.
You can have all your expenses paid for plus extra cash flow at the end of the month.
When owning a rental property, you need to know when your rental property management provider disburses your rental income. Most mortgages are due on the 1st and are not considered late until the 15th unless they have reached maturity, then your terms may be different. Nevertheless, this blog post is to know when your property management company will be disbursing your rental income.
Rental Property Disbursement Dates
Each property management company will be different when its owners draw dates and pay out their rental property owners. The standard timeframe for rental property owner payments is between the 8th-10th of each month. Many property management companies pay owners on the 15th of each month or even have an extensive 30-day holding period before paying their rental property owners.
Why So Long?
Many first-time landlords expect rent to be initiated to them right away. This is often not the case when it comes to rental property investing. When the tenant pays rent to your property management company, they typically submit rent online with a Credit Card, Debit Card, or Direct Deposit option. The hold time for rent is to ensure that their payment has cleared into your account. Every month, many landlords get fooled by thinking they received rent when in all reality, rental payments get reversed month after month. Property management companies have set policies and procedures to avoid rental payment reversals.
Should I use a Property Management Company?
If you want consistent rental income, you may hire a property management company to assist with rent collection. We have seen hundreds of landlords call us and explain they haven’t recieved rent from their tenants.
Property managers are rental income machines, meaning they are experts at rent collection and property management. It is better to pay a professional property manager and receive your rental income than to have a rental property that produces no income.
Property Management Conclusion
Each property management company will operate differently when they pay their rental property owners. Regardless, you’ll receive a beautiful monthly payment for your property every month; you’ll need to know when you can expect rental payments.
As one of Orlando’s most trusted property management companies, we are transparent with our owners and set them up for success. If you have any questions or want to learn more about our property management services, please contact The Listing Real Estate Management, your best choice for Orlando property management.