We often are asked by our clients, especially start up agencies, “How often should we pay our owners and creditors?”.
Of course, historically, these payments have mainly occurred at mid-month and end of month. But why is this the case?
As part of our initial business discovery, Real+ Outsourced discussed the pros and cons and decided to implement weekly owner and creditor payments for our trust clients.
So, what are the benefits?
Owners are sometime suspicious when we hold their money. It is their money after all, our fees have been taken usually on receipting, so why not pay them as soon as we receive the funds?
Less time spent at end of month
End of month is always a busy time in Property Management, by spreading the load of transfers over the month we are facilitating a smoother quicker end of month.
Review of Process
Changing the payment frequency would be a great to streamline some of your process around trust accounting, and ensure there are no other arears you can improve on.
Reduced overdue fees from creditors
By paying accounts weekly, creditors will appreciate having the funds earlier and reduction of those pesky overdue fees. They might even be encouraged to get their invoices in to you before the 30th of the month!
Property Management is a customer driven industry. So maybe it’s time to start investigating what your customers really want, rather than sticking to what we’ve always done. What process you can change in your office to increase your service offering?
For any help streamlining your trust account process or to find out how Real+ Outsourced can help your office call 02 8355 4999.