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Payment terms for property managers
+7
dp1
Davey Cracker
TimM
ODIN
milspec6
Ryan S
cush83669
11 posters
:: Forums :: Business/Management
Page 1 of 1
Payment terms for property managers
What are your payment terms for property managers and commercial properties? Do you require a signed contract and personal guarantee?
cush83669- Member
- Posts : 29
Join date : 2014-01-31
Age : 46
Location : Star, Idaho
Re: Payment terms for property managers
No contract for us. Payment on commercial is net 30. Restaurants payment upon completion unless they have multiple locations then it's net 30. Property mgmt make their own rules. Good ones pay upon receipt or net 30. The others you have to pester them for payment after 30. Then you will be told the house hasn't rented or waiting for first rent or the security deposit hasn't cleared yet or the owner didn't have enough funds. Pick one reason to believe, they are just way to buy the PM group three more weeks. Lol
Ryan S- Expert & Trusted Member
- Posts : 1956
Join date : 2013-09-20
Age : 44
Location : NC
Re: Payment terms for property managers
Depends upon the person you are dealing with in my experience.
If you are working for the man who writes the check...no contract needed and payment term is 7 days. Also, insist on a master key so you can get in there on your schedule and not theirs. If they don't trust you with keys...it will be a bad experience chasing your money as well.
If you are working for a middle-manager who submits the bill to some other entity, get a contract and set a very strict 30 day term with stiff penalties for every day that it is late. You are a cleaner, not a bank so let them fund their own business.
I get paid by my real estate contracts on the site and my apartment complexes in 7 days and 30 days for the "out of town" business owners. I don't have any restaurants, so I can't offer any advice on that.
Just set your tone and terms according to how they view you. IF they don't respect you as a business, they WILL try and push you around when it comes to money.
If you are working for the man who writes the check...no contract needed and payment term is 7 days. Also, insist on a master key so you can get in there on your schedule and not theirs. If they don't trust you with keys...it will be a bad experience chasing your money as well.
If you are working for a middle-manager who submits the bill to some other entity, get a contract and set a very strict 30 day term with stiff penalties for every day that it is late. You are a cleaner, not a bank so let them fund their own business.
I get paid by my real estate contracts on the site and my apartment complexes in 7 days and 30 days for the "out of town" business owners. I don't have any restaurants, so I can't offer any advice on that.
Just set your tone and terms according to how they view you. IF they don't respect you as a business, they WILL try and push you around when it comes to money.
Re: Payment terms for property managers
All of my property managers pay within 30 days. I have fired all the others that I have had to fight to get my payment. Most of them pay the same time every month so I know when checks are coming in.
Re: Payment terms for property managers
At one time about 90% of my income/jobs were billings for PM co. But I eventually got tired of fighting for my well earned money and fired them. I still have a couple I do work for because they pay well and quick. But I do mostly residential now, where the money's at and I get paid that day upon job completion.
Like it's already been said they play by their own rules, and you either decide to put up with it or bail.
Good Luck!!
Like it's already been said they play by their own rules, and you either decide to put up with it or bail.
Good Luck!!
Davey Cracker- Expert & Trusted Member
- Posts : 4796
Join date : 2013-09-20
Age : 57
Location : Long Beach CA
Re: Payment terms for property managers
Absolutely no payment terms for me, all payments are due after the job is completed, the only one I made exception was the $ 3500 job that I did a few weeks ago, only because it was going to take a couple of nights to finish the work and they weren't going to be there when I'm done at 3 or 4 am, I made a simple but strict contract that required them to pay promptly after the work is completed and they did in 3 days with no hassle.
A couple PM has asked but I always declined, too much of hassles to bill, I'm too busy to chase people around.
A couple PM has asked but I always declined, too much of hassles to bill, I'm too busy to chase people around.
dp1- Moderator
- Posts : 3966
Join date : 2013-09-19
Location : california
Re: Payment terms for property managers
never had a problem with the 3 pm companies I did work for.
Had a huge problem with a realtor who owns the John L. Scott realty in Snohomish, WA
dude is notorious for writing bad checks, painters, carpet cleaners, you name it hes ripped them off.
Many of the signs that show his face you will find people have taken markers and drawn horns, mustache, body parts going into his mouth LOL
He actually keeps checks on hand that are from closed accounts, like still has Washington Mutual checks even though they were chase... just waiting for a cheap service provider to rip off.
One thing to note, he only calls the bottom of the barrel price guys... I was in my first year of business when I ran into him. I guess he figures if they are willing to do a job for cheap then they wont bother or be organized enough to actually come after him.
Had a huge problem with a realtor who owns the John L. Scott realty in Snohomish, WA
dude is notorious for writing bad checks, painters, carpet cleaners, you name it hes ripped them off.
Many of the signs that show his face you will find people have taken markers and drawn horns, mustache, body parts going into his mouth LOL
He actually keeps checks on hand that are from closed accounts, like still has Washington Mutual checks even though they were chase... just waiting for a cheap service provider to rip off.
One thing to note, he only calls the bottom of the barrel price guys... I was in my first year of business when I ran into him. I guess he figures if they are willing to do a job for cheap then they wont bother or be organized enough to actually come after him.
Re: Payment terms for property managers
Wow, guys around here get found in a ditch for stunts like that! Surprised an agent like that isn't behind bars by now.
Re: Payment terms for property managers
[quote="ACpower1"
............... like still has Washington Mutual checks even though they were chase...
[/quote]
So Do I!!.......but every chk I write is good.
Be glad they're not from Great Western Bank still!!
............... like still has Washington Mutual checks even though they were chase...
[/quote]
So Do I!!.......but every chk I write is good.
Be glad they're not from Great Western Bank still!!
Davey Cracker- Expert & Trusted Member
- Posts : 4796
Join date : 2013-09-20
Age : 57
Location : Long Beach CA
Re: Payment terms for property managers
Net 30.
And yes, there is some form of contract. But really it is just more of an agreement to price and work scope. I never lock them in for a period of time.
And yes, there is some form of contract. But really it is just more of an agreement to price and work scope. I never lock them in for a period of time.
Freemind1- Senior Member
- Posts : 1282
Join date : 2013-09-20
Re: Payment terms for property managers
I'm thinking of requiring a CC on file to bill property managers and for commercial work. All others pay upon completion of service. I just don't feel comfortable extending credit to companies without having a contract and pulling credit.
cush83669- Member
- Posts : 29
Join date : 2014-01-31
Age : 46
Location : Star, Idaho
Re: Payment terms for property managers
I wish you luck with that, and would be surprised if asking them for a CC works.
I think just like someone has already said, they know you can easily be replaced, and when you ask these flaky slow paying sucka's for a CC they will move on to the next guy, they can take advantage of.
Which honestly, would probably be doing you a favor.
I think just like someone has already said, they know you can easily be replaced, and when you ask these flaky slow paying sucka's for a CC they will move on to the next guy, they can take advantage of.
Which honestly, would probably be doing you a favor.
Davey Cracker- Expert & Trusted Member
- Posts : 4796
Join date : 2013-09-20
Age : 57
Location : Long Beach CA
Re: Payment terms for property managers
I'm sure many won't go for it. I think if you have a system in place and stick to it you come across as more professional. Just ask the property managers why they don't let their tenants pay their security deposit and rent at the end of their first month.
cush83669- Member
- Posts : 29
Join date : 2014-01-31
Age : 46
Location : Star, Idaho
Re: Payment terms for property managers
All I can say is be careful with property management companies. I have been burned bad by a couple several years ago. I have also seen companies keep on working carpet cleaners into 60 days past due. As far as I am concerned I will have very limited property management jobs. They are demanding slow paying and sometimes they go bankrupt leaving you holding a huge unpaid invoice with no recourse. I would recommend building a carpet cleaning business that has more small commercial and residential than some big corporations who may leave you hanging. We simply can not finance our high quality work. Apartments want their rent on the 1st but want us to wait on the pm company. There is just not much to like about a relationship like that!
Jan Sullins- Member
- Posts : 40
Join date : 2014-04-15
Age : 72
Location : Oklahoma City
Re: Payment terms for property managers
That's some good advice Jan.
Ryan S- Expert & Trusted Member
- Posts : 1956
Join date : 2013-09-20
Age : 44
Location : NC
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