TABLE OF CONTENTS

Owner payments

Landlords can be paid twice monthly (not fortnightly). This of course is dependant on what rental income is received by way of rental payments from tenants.

Payments are scheduled for the same period each month but please bear in mind that as these days are not set days each month, the actual date of payment may vary. Payments are made on the following days each month.

For owners on monthly payments

·         Payments are made on the first business day of the month.

For owners on twice monthly payments 

·         Payments are made on the first business day of the month, and

·         Payments are also made on the 15^th of each month, or the next business day after the 15^th.

Why did the payment not occur or was less than expected?

Typically, if tenants pay regularly and on time the owners will receive similar amounts each payment run. It’s important to understand that the owners could get a higher or lower amount than they expect for several reasons, being;

·         The actual day of the week the payment run is made may not line up with when the tenant pays             rent that week / period.

·         Additional bills may be processed that reduce the income they receive (maintenance, rates,                     water rates etc)

·         Tenants may have fallen behind unexpectedly.

Contractor & Creditor Payments

Contractors are paid in line with the twice monthly payments noted above, based on income available for the owner and property that the invoice relates to.

Contractor & Creditor Invoice Cut-off Times

For Head Office to be able to process all invoices and ensure as many Contractors are paid as promptly as possible it’s important for you as the agent to ensure that all invoices are emailed through to Head Office no later than 3 business days prior to the payment run days noted above.

Please email invoices to Head Office via [email protected]

Invoice information required

As we are paying an invoice on behalf of a property owner it is important to ensure that the invoice is received on behalf of the owner and not address to @realty or yourselves as the agent. All creditor invoices should be address as follows:

Invoices MUST have the rental property address included in FULL

• An invoice should be created for each property individually and not be a summarised invoice for multiple properties. These invoices are paid from owner’s accounts and rental income and cannot be split over multiple properties through the Trust Accounting system

• Invoices should always include the Contractors following details:

  1. Invoice date

  2. Business name that matches the ABN

  3. ABN

  4. Business address

  5. Business email

  6. Business banking details

  7. Payment terms (e.g. due within 30 days of invoice date)

  8. If applicable, reference to any work order number / reference

Tenant invoices to be processed

For any invoices that need to be issued to tenants please be very clear with your instructions on what is to be charged.

Tenant invoices are essentially invoices generated to reimburse the property owner (as our legal client). 

Tenant invoices cannot be for a cost over and above the cost the owner has incurred as part of the management of the property (e.g. if the owner doesn’t pay for property signage then the tenant cannot be charged for property signage in a “break lease” situation).

Tenants are provided 1 month to pay any invoice that is generated. Typically the owner will pay any Contractor / Creditor invoice in full and when due and the tenant will reimburse the owner through the Trust Account process.

Direct communication with Head Office - Body Corp, Strata & Council/Water Rates

You do have the ability to let your Clients contact any of the above companies and organizations and request that their invoices and statements are emailed direct to Head Office for payment when due.

You can provide the above details as the address that can be added to your Clients details with these organisations.

Please ensure you request that invoices are EMAILED to Head Office using [email protected] 

When invoices are paid

Invoices should be submitted to the Head Office team as a priority when you receive them. Invoice cut off times are established in the lead up to any Owner & Contractor disbursement each month and failure to have your invoices in before these cut-offs may result in your Contractors being paid later than you would like.

 Things to consider

• We can only pay an invoice on the Clients behalf if they permit us to do so. It is important to have in writing their instruction and approval to do this. This may be negotiated as part of the Management Agreement or subsequently throughout the time we continue to manage the property.

• Some Contractors may require a deposit for works to be booked and proceed. If this is the case please always check with Head Office as to the current balance of owner funds in Trust before proceeding. If there is insufficient funds in Trust to pay the deposit (or the whole invoice within the accounting period and invoice time frame) you may need to have your Client deposit the relevant amount into our Trust.

•  To do this its not as simple as putting money in trust. You will need to contact Head Office for     the relevant reference details to be used

   

  Contractor Appointment Form

   

  It is VITAL that a Contractor Appointment Form is issued to a Contractor before we book any works with them. The information contained within the form will include their licenses, insurance coverage and other relevant and important information that we need before a Contractor commences work at a property.

   

  Even if works are urgent in nature it's important that as a risk management strategy anyone appointing a new Contractor ensures that the Contractor is adequately covered in the event of an injury, damage or another matter that could impact the property, the residents and the property owner.

  Freshdesk Article

   

  Owner & Creditor Payment Cycle - https://www.atrealtysupport.com.au/a/solutions/articles/14000146731