Priority Owner Program
We have some owners who need the current month’s rent to pay that month’s bills. We also have owners who don’t want to wait for the rent to become available to them. Even if the tenant pays on the first of the month, our owner may not be able to access these funds for a week or two. Let me explain. Let’s say the first of the month falls on a Friday and the tenant pays rent with a check.
- Friday the 1st: Banks require a five business day hold on this type of payment.
- Friday the 8th: The funds would be considered “good” on the 8th of the month (Friday).
- Monday the 11th: If it takes us another business day to process the payment, we would send out the rent proceeds.
- Thursday the 14th: The bank puts a two day hold on electronic funds transfer, so this owner would finally be able to have access to these funds.
Even though the tenant paid on the 1st the owner cannot spend the money until the 14th.
With this program, the owner receives their money electronically on the 1st business day of the month and in this example could have access by Tuesday the 5th. In order to participate in this program, there are a few conditions:
- There is a $30 monthly fee.
- The tenant must have 2 month’s rent as security deposit or participate in our Preferred Tenant Program where we guarantee the second month’s rent to the owner as a security deposit and the tenant pays a small monthly fee as a Security Deposit Waiver Fee. Once the tenant moves out, and if there is no damage to the property, we will refund 50% of this fee to them.
- The tenant must agree to the program. We use the money held in trust to pay the owner’s proceeds. Since legally the tenant’s funds are held in trust, the tenant must agree to release of funds. Once the tenant pays as agreed, we replace the money we deducted from the trust account.
If you can wait for your monthly proceeds, save yourself the $30 and you should receive your proceeds no later than the 15th. But if you can’t, or you want a Payment Guarantee, this program is for you.