The question that many of our clients may have is, “When will I receive my rental income?” The process begins when we receive rent from the tenants, as rent is due on the 1st of every month. Tenants are given a 3 day grace period, if not paid within this time frame, they will be charged with a late fee. We incentivize our tenants to make sure that they pay on a timely manner.
Payments for rent are accepted in the form of certified funds, checks and the tenants can pay online . Depending on the type of payment, Real Property Management waits until the 10th to disperse funds to our owners. This is just to be confident that the funds did indeed go through and no checks were returned as non-sufficient funds.
In the case that a tenant’s rental payment bounces, they will be notified and must bring in certified funds for rent payment that same day that the check bounced to avoid any other penalty. If the tenant does not bring in funds the same day, a 3 day notice will be posted the following business day and the steps are taken to notify the owner.
If owners are set up to receive the rental income via check or direct deposit, the disbursement is initiated on the 10th day of each month. Direct deposits take 24 hours to clear, so owners receiving funds directly to their bank account can expect to receive their rent on the 11th day of each month providing the tenant paid on time.
There are also some instances, where tenants may be extremely late on rent, and pay after the 10th of the month. These payments will be sent out every following Thursday after the 10th for the next 3 weeks of that month, and the cycle will continue again the following month.