How do we handle owner payments?
One of our policies at RentWerx is that owner payments will arrive to the owner in their bank accounts between the 10th and 12th of each month. That system flows in a very specific way.
We hope and expect that tenants will pay their rent on time each month, which means they’ll pay on the first of the month. I say “hope” because there are holidays and weekends in the mix and you have to consider that sometimes they will pay on the 2nd or 3rd of the month. In Texas, we are required to give them a grace period when it comes to rental payments. So, assuming they do pay on the first, we have to wait for the payment to settle. When they pay us rent electronically, that payment still has to settle, just like a written check or a hard copy check would have to clear. Once it settles into our account, we track it using our property management software system, called Appfolio.
Once we have the money settled and tracked in our accounts, we turn around and forward that rent to the property owner right away. We send that payment with an emailed statement that you get every month. All of this can take a little bit of time, but not too much. The bottom line is that when our tenants pay on time, we are able to pay our owners on the 5th or 6th of the month, depending on holidays and business days, and then it hits the owner’s account between the 10th and the 12th. It’s something that can be counted on every month.
In addition to the rental payment, you can also expect to receive your emailed statement at around the same time. This statement explains all of your rental income for that period of time, as well as any expenses that occurred on your property. It’s a great way to keep owners organized and to help them understand the amount of money they are receiving from their tenants every month. We email your monthly statements and an end-of-year statement.
If you have any questions about we charge property management fees, or you’re interested in learning more about our property management services, please contact us at RentWerx. We’d be very happy to talk with you.