When Do I Receive the Proceeds of the
Monthly Rent From My Rental Home?
The Lease Document that we use for renting homes says that the monthly rent is due from the tenants on the 1st day of each month. There is, however, a grace period through the 5th of the month. That means that the monthly rent is late on the 6th.
Rent payments are received by check or money order delivered to our office. They are also made through direct tenant deposits at our bank. Finally, tenants can make monthly rent payments using PayPal and Venmo. We make rent deposits several times each week as needed. The funds must clear our bank before doing the distributions. If tenants pay by personal check, that process can take up to 5 to 7 business days. This means that we normally can provide distributions starting on the 12th or 13th of the month. Homeowners can expect to have their monthly rent proceeds (minus any expenses) on or before the 14th of the month in most cases.
There are times due to the calendar, though, when things run a little late. It doesn’t happen often. These delays occur if the 5th of the month occurs on a weekend and there is also a bank holiday (Labor Day, Memorial Day, etc). In those cases, the deposits can’t be made as early as we like. This causes a slight delay in the owner monthly rent distributions. Obviously, if there is a problem with receiving the rent from tenants, then delays in your distribution will occur (and we may need to discuss taking the tenants to Court to begin an eviction).
We normally do a subsequent distribution sometime between the 21st and the 27th of each month. Most of our homeowners now have opted for Direct Deposit (ACH) to receive their distributions of the monthly rent. This helps them to get the funds faster. Quite frankly, it’s easier for us, too!