Cash Flow

Cash-flow from your Investment property

One of the key areas that most investors look at when owing a residential investment property is cash flow. Considerations that go through an investors mind are when is my mortgage payment due and when will the tenant be paying rent. In the event that a property management company is looking after your property then a further consideration is when will that company pass my rent money on to me.

Tenants are required to pay rent at least monthly, however most will pay either weekly or fortnightly. Note that it is imperative that your Tenancy Agreement specifies rent payment cycles so that this is contractually bound.  If you are contemplating placing your property with a property management company then be sure to understand how they manage your money, does the rent get paid directly into a trust account to protect your money and when will this money be paid on to you. There are companies that will only pass rents through to you on a monthly basis however with technology as it is these days, there is no reason why you shouldn’t receive rent within 5 days of the property management company receiving it from the tenant.