Landlords interested in our property management services often want to know how long it will take to get the rent proceeds if they decide to hire Cliffdwellers as their property manager. We have heard of management companies waiting to disburse funds until after the first of the following month so that they always have a month’s worth of reserve in the landlord’s portfolio account. Supposedly this month delay is needed so the management company can pay for maintenance and repairs that become necessary during the month. We think this is unnecessary and have a much more streamlined approach.
Rental Income Timeline:
- On or before the first day of the month: Our lease states that rent is due on the first of the month and late on the second. We use standard lease application criteria and nearly all of the tenants that we approve pay on time. When we receive rent on the first of the month we are notified by our property management software that the tenant has paid rent.
- On or around the 4th day of the month: We are notified again by our property management software within 3 or 4 days that the rent check has been cleared through the banking system and we now have “good funds”.
- On or around the 7th day of the month: Depending on what day of the week the first of the month falls on there will most likely be a weekend in the mix which adds two days to the rent distribution process.
- On or before the 8th day of the month: We begin reviewing, and paying all approved invoices for your property
- On or before the 10th day of the month: We will process your rent proceeds by either electronic distribution (ACH directly into your bank account) or we will mail you a check, depending on your preferences that you provide us. Electronic distribution takes approximately 3 days to clear and a paper check generally takes about the same amount of time to arrive in the mail.
We state right in our property management agreement that all rent proceeds will be processed by the 10th of the month. We know that properly accounting for your funds, and delivering them on time is of high importance and we work very hard to make sure that you receive the proper amount within the expected time frame.