As a Charlotte rental property owner, you likely expect to be paid rent every month.
But, are you getting your full rent?
Some Charlotte property management companies do not pay the full rental amount to their owners after the tenant’s rent payment has cleared. There are several reasons for this, though it can be difficult to make sense of them.
Make sure you understand how your funds will be paid before you hire a property manager. You need total transparency so you’re not left surprised when you don’t earn any rent at all the first month or two that your property is rented.
Leasing Fees May be Deducted
Another reason you may not get a full deposit in your first month is that your property manager has deducted a leasing fee. Leasing fees are sometimes a flat rate, and sometimes they’re a percentage of that first month’s rent. It might be 50 percent of the rent, for example.
So, if you have a property that rents for $1,500 a month and there’s a 50 percent leasing fee as well as a $750 maintenance reserve, that’s going to eat up your entire $1,500. You may be expecting a rental payment, but you won’t get one.
Some property managers are even known to hold an entire month’s rent in advance, which means you could go two full months before you have any money coming in at all.
Full Funds Disbursement Guarantee
You should work with Charlotte property managers who promise to pay you the full rental amount every month. At Alarca Realty, we disburse all funds to our owners.
We believe you should get your funds – all your funds – quickly. This is covered by our rapid funds disbursement guarantee. Ask your property manager how the finances are handled before you sign a management agreement. Find out when rent is paid to you, how it’s paid, and whether there are any reserves you need to fund out of those rental proceeds.
If you have any questions about Charlotte property management or our full funds disbursement plans, please contact us at Alarca Realty.