Rent Due Date Through Agent

mgarl10024

Hi,

I'm a new landlord and am operating through an agent running a managed service.

I've a question regarding rent due dates. While I acknowledge that this is a minor thing, I am just trying to learn about what is 'normal'. I have no concerns about my tenant - they seem very good.

In this situation, the rent is paid from the tenant, to the agent, and then to me as the landlord. This month, I received the rent a couple of days late.

From the tenant's point of view, the tenant letting agreement states that the rent is due by the due date. This means, that on the due date, the rent should have been paid. From speaking with the agent (with him first blaming it on the banking system and then admitting it was there on time) it appears that the tenant paid on time. Perfect.

However, the rent to me was late, it appears because the agent took two days to process it. He said when asked "I cannot guarantee that the rent will be paid to you on the due date. It will be paid as soon as I see it". This means that if the due date falls on a weekend that there will be a two day delay before it reaches me.

My question is whether this delay is 'normal' practice for an agent running a managed service? Or whether as a landlord, I should expect to actually have the rent on the due date? Having experience of just one agent, I'm just not sure what is 'normal'.

Thanks,

Mr_Moo_2

Thiss is pretty standard stuff with Agents. It always helps if there is something formal in your agreement with them as to how quickly they will pay over any rent (presumably minus their fees), otherwise you get into these situations where they are a bit ad hoc as to how they pass it on. Remember its a nice cashflow enabler for them as long as it sits in their bank account.

As you develop your experience as a LL you might want to consider dispensing with the Agent or just using them to source and check tenants? There is a useful guide on choosing an agent on here drafted by regular poster G_M which is a really good read, a bit late for you given you have one but worth a look through regardless....

Edit: Found it ! - https://forums.moneysavingexpert.com/discussion/4765736

nidO

This is normal. Also to be factored in is bank transfer times, while FP means that transfers will "usually" arrive almost immediately they can still take until the end of the following business day and a BACS transfer (if that's used for any reason) can take a good couple of days.
This means even if your tenant pays your agent and the payment arrives on the same day and your agent also sends the rent on to you the same day, there's every chance the payment might not actually reach you until the end of the following day.

Once you add in accounts processing times at the agent etc, it's pretty normal for you to get your rent payment several working days after the tenant's due date, your agreement with the agent should make it pretty clear that the due date is the date the tenant has to pay the agent, and that it will take a few days after this for the payment to be passed on to you.

sandsni

Unfortunately this is pretty standard practice. You'll also probably see that there's a clause in your contract with the agent (NOT the tenancy agreement) saying they are entitled to keep any interest accrued while your money is in their account.

mgarl10024

Hi Mr. Moo, nidO and sandsni,

Thank you all for your replies. It is good to know what to expect and that the delay experienced this morning is 'normal' practice.

As to dispensing with the agent, it is tempting. This time around, as we were new, we felt a little timid and enjoyed the idea of the agent shielding us from the checks, legals and inspections. The deal offered on the managed service was also very reasonable when compared with the 'tenant find' service in that we could cancel it after many months and still break even.
Long term though, the agent really needs to drop his rates further for me to be interested in keeping it, and I can't seem him dropping - which means that long term I am planning to take it over. I'm watching and learning with interest.

Thanks again,

mrginge

mgarl10024 wrote: »

As to dispensing with the agent, it is tempting. This time around, as we were new, we felt a little timid and enjoyed the idea of the agent shielding us from the checks, legals and inspections.

The agent isn't shielding you from any responsibilities, they are just *supposed* to be doing them for you.
If they don't it's still you who ends up in the you know what.

ognum

I use two different agents (properties in different areas)

Area 1 - Rent is paid to me on the day it is paid by the tenant unless a weekend when it is paid on Monday. This agent always has there rent day for every property they manage on the 1st of the month so they always have staff available to manage it on that day. they are very efficient!

Area 2 - Rent is always paid a couple of days after rent day. Rent day can be any day of the month according to when the tenant takes up the tenancy.

My personal preference is Area 1 but I am aware this does nit give tenants any flexibility!

I

mgarl10024

mrginge wrote: »

The agent isn't shielding you from any responsibilities, they are just *supposed* to be doing them for you.
If they don't it's still you who ends up in the you know what.

Granted. When I said "shielding" I meant more from the chore of having to do them, than from the responsibility - but you were right to clarify.

In fact, I do wonder sometimes. Checking up on the agent often takes just as long or even longer than I think actually doing the tasks would - especially when they get defensive when you enquire.

G_M

mgarl10024 wrote: »

In fact, I do wonder sometimes. Checking up on the agent often takes just as long or even longer than I think actually doing the tasks would - especially when they get defensive when you enquire.

Indeed!

Letting Agents (Tips for selecting, and tips for sacking them)

Slinky

Blimey, when I rented our house out, the tenants paid on the 1st and the agents paid me on 15th! Except one month when the tenant forgot to extend his standing order and I didn't get paid on 15th as his rent was 2 weeks late and the agent had done nothing about chasing it, it took me to enquire where my money was before anything happened.

Still, I got away lightly, several years later the agent did a bunk with a load of landlord deposits.........