How long does it take to get my rent if I hire a property management company?
So if you hire a property management company, it’s safe to assume that they’re going to collect the rent from the tenant, pay any outstanding invoices, pay any bills that you may have coming in, and then at some point, you receive the remaining proceeds. Either a check is mailed to you or, an electronic ACH transfer is made into your bank account.
So how long should that take? Well, here at HomeVault, we have a very streamlined process. Rent’s due on the first, it’s late on the second, and then we post a three day notice to pay or quit, that’s what’s legally required by the state of Colorado. And, if they have not paid after those three days, then we would begin the eviction process. But we rarely get to that because we stay with our rent being due on the first, and we provide the ability for them to pay electronically.
That cuts out any grace period that would be required to account for lost checks in the mail, or them dropping the rent payment off at our office, but the office is closed or something like that. So, having the ability to collect electronic rent on the first of the month really streamlines our process. So with HomeVault, we actually guarantee in your management agreement that we’ll have the proceeds to you by the 10th of the month.
We will go ahead and process those into your account or mail the check by the 10th of the month. Now if you ask other property management companies, everybody runs their business a little bit differently. Some of the other models that I’ve heard is that they actually hold it until the end of the month, and then they’ll mail out on the last day of the month. Other models that I’ve heard is that, property management companies with hold the entire first month of rent, and then start paying you with the second month.
So on that first month that you would rent the property, you wouldn’t actually get any proceeds. And they hold that in escrow so that their statements match the money that they give you in following months. And so, you have to figure out which method you’re comfortable with, but with our streamlined process, we don’t feel there’s any need to hold those additional funds. And so, we get those to you as quickly as possible.
The reason that we do take until the 10th accounts for any weekends or holidays, but also when we collect funds from a tenant, we process those through our trust account. We get notified from our bank that those are indeed good funds, and then we’ll send those funds off to you. So when you receive funds from our trust account, you can be assured that those are good funds that can be spent immediately.
You don’t have to worry about a tenant possibly bouncing that check and those not being in your account. So, this is Tony Cline with HomeVault. Thanks for watching. And if you have any other questions, please give us a call at 303-296-1225 or, check out our website for more answers to typical questions at HomeVault.com. Thanks.