We are always looking for ways to improve our client’s experience. Over the years, we have seen a lot of confusion regarding the monthly owner statements. One of the biggest reasons for the confusion was due to how the statement dates are run. Since we pay owners in the middle of the month, this means the owner statements run in overlapping months. For example, lets say we pay an owner on June 15th. This means we send a statement that runs from May 16th- June 15th. This is called “Mid Month Accounting”. Having statements run overlapping months makes the statements confusing and often difficult to understand.
Starting May 1st 2018, we are switching to a method called “Full Month Accounting”. Your owner statements will run from the first of the month, to the end of the month. For example, by April 30th, you will receive an owner statement showing income and expenses from April. Many property management companies use this method, as it is a much cleaner and simpler approach to property accounting.
In order to switch to Full Month Accounting, we need to move the owner payment date to coincide with your statement date, so beginning May 2016, we will be dispersing funds to owners at the end of the month, instead of mid month.
Here is how this change benefits you:
Your owner statements will run from the 1st to end of the month with payments at the end which also coincides with the state mandated monthly collection cycle with tenants(i.e. rent due on first each month). This means your statements are much “cleaner” and easier to understand.
If a tenant does not pay the rent you will know well before you expected to get paid.
Your funds will can reliably come earlier in the months after the initial month which will also help when using your funds to make a mortgage payment.
We will have enough funds on hand to pay for repairs. With the old system, if a large bill comes in, we cannot pay it and end up contacting you to fund your account. This leads to delays while an owner sends us money. Not having enough funds on hand to manage your property is inefficient and leads to unnecessary delays.
We understand a one-time delay in your owner deposit may present some difficulty and we apologize for any inconvenience, however with planning this causes built in reserves that will increase the stability of your portfolio.
We feel the benefits of the new system far outweigh the only negative, which is a one-time delay in your May 2018 rent deposit.
Moving forward, you will receive your rent deposit every 30 days like normal.
Please note we will remit owner funds at the end of every month. This means we press, “send funds ACH” in our system (or put your check in the mail if you receive paper checks) by the end of each month. Depending on your bank, it takes 2-4 business days for the funds to show up in your account. For example, May 31st is a Friday. This means, you will not see the rent in your account until Tuesday June May 2nd-4th, depending on how quickly your bank processes deposits. As a rule of thumb, you can always expect funds to be available in your account, no later than the 5th of each month, usually sooner.
We appreciate your business very much. Please let me know if you have any question or concerns.