If you enlist the help of a property management company to manage your rental, you may be curious how rent is collected from the tenant and then forwarded to your bank account.
On this episode of Five Minute Friday, Bob walks us through North County Property Group’s best practices around the flow of funds in a rental property. He explains when rent is due and where it’s deposited, discussing how NCPG tracks incoming rent payments and why his team offers tenants a five-day grace period.
Bob goes on to introduce us to the Tenant Portal, an online platform where NCPG renters pay by eCheck or credit card, and describe what happens if rent is not paid within the five-day grace period. Listen in to understand how the accounting department pays vendors the first week of the month and sends property owners a monthly statement in parallel with their distribution deposit.
Topics Covered
[0:44] North County Property Group’s best practices around the flow of funds in a rental property
[1:11] When rent is due and where it’s deposited
[1:34] How NCPG tracks incoming rent payments
[1:52] Why Bob’s team uses the California Association of Realtors five-day grace period and what they do if rent is not paid by the third of the month
[2:40] How most NCPG renters pay online through the Tenant Portal by eCheck or credit card
[3:49] What happens if rent is not received within the five-day grace period
[4:29] The accounting department’s role in paying vendors and regular monthly bills (e.g.: HOA dues, pool service, etc.) the first week of each month
[4:56] How the owner distribution deposit happens in parallel with the property owner receiving their monthly statement
[5:30] NCPG’s commitment to completing owner distribution by the 10th of the month
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