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
RealRenta also
has a free vision, so why not check it out
Jason Gwerder
Wednesday, 6 October 2021
