Property investors want more control over receipt of rental payments

A recent poll conducted by Smart Property Investment – a platform for investors and property buyers – has found that almost 70 percent of landlords want to receive rent immediately from their tenants or to have the flexibility to choose when they are paid.

Just 25 percent indicated they preferred to receive rent at the end of each month regardless of when rent was paid by the tenant.

Only 5 percent of property investors were happy receiving rent two weeks after it had been paid by tenants.

Mitchell Burge, an investor with a portfolio of 18 residential properties and two commercial assets, believed investors that have to wait for their rental income while it sat in an agency trust account were getting a raw deal.

"I want my rental income in my bank account as soon as it’s paid,” said Burge.

"With different mortgage repayments going out every month, and at different days, I want the biggest balance in my account I can possibly have at all times.

"I use an offset account to help reduce interest payments, so every dollar in my offset is working for me. Every day that my funds are sitting in someone else’s account, it’s benefiting them, not me.”

Burge said he used property managers to manage his portfolio because he didn’t want to get dragged into the day-to-day headaches of directly dealing with tenants.

"The only complaint I have is the lag between when rent is paid and when I see it in my account,” he said.

The poll’s findings highlight a potential gap in the proposition of many agencies and property management businesses due to the largely manual process of collecting, reconciling, and distributing rent via a trust account.

While this process has served the industry well for decades, the emergence of new technology and the evolution in payments has opened alternatives.

Want your rent in your bank account straight away, but don’t want the headache of having to track the rent and paperwork? THEN

RealRenta has all the tools that a property manager has, but at over ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

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Jason Gwerder
Wednesday, 6 October 2021

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