Kevin Davidson, Marketing Director, and Margot Broughton, Director of Operations, explain how owners are paid.
How and when do we pay our owners?
As an owner of a rental property, one of the most important questions you might ask is – How do I get my money each month? In a perfect world, your tenant pays rent every month on time. At Empire Industries Property Management everything is handled online, so it is a seamless process. It typically takes about three to five business days for the money to clear their account, and we process all cleared payments every Friday. So if your tenant’s payment cleared on Wednesday, you can expect the money to be processed to your account on Friday.
We wait for the payment to clear to avoid situations like a tenant writing a bad check.
The question we get the most is: if my tenant paid on the first, why didn’t I get the money on the second? If we send you the money immediately and the check bounces, you would have to pay us back. No one ever wants to be in that position, and that is why we wait for it to clear. Unlike other management companies that only pay out on the 10th of every month, we process cleared payments every Friday so it is possible for you to get your money faster.
Getting paid earlier in the month, you have funds available for your mortgage, repairs, or whatever expenses you have for that particular property. We do this to to make life easier for the owner of the property. If a tenant paid late (for example on the seventh of the month), some property management companies would make the owner wait an entire month for the next draw. We think our weekly payout process is a huge advantage to our owners and allows them access to their money faster.
Most owners have an account set up so the money is automatically transferred to their account.
If a paper check is preferred, we will absolutely cut a paper check but there is a fee for that. Most owners opt to have it automatically transferred directly into their bank account so it’s a seamless process.