The norm is that your tenant/s rent needs to be in our rental trust account on the 1st day of each month. There are exceptions to this rule where Landlords and Tenants may agree on another due date, but we do not advise this as it's very difficult to manage multiple rent payment dates in a rental management portfolio.
Plan for the worst case scenario . . . although we do our utmost to pay our Landlords immediately on receipt of the rent payment, we advise all Landlords to plan their financial commitments that depend on receipt of their rental income for the 10th of the month to avoid any late payment issues or charges.
Rent payments received prior to the 1st of the month will be disbursed on the 1st of the month, or the fist business day of the month. The reason for not disbursing rent received prior to the due date is that the rent for a particular month is only due and payable to the Landlrod on the 1st of the month - we would, therefore, be irresponsible if we paid that money over earlier as the tenant is not responsible for payment of the rent until the due date.
Furthermore, in terms of the Consumer Protection Act (CPA), a tenant in a fixed term lease agreement can cancel that lease by giving 20 business days notice - without giving a reason. This applies by law, so a tenant can, for example, give notice under the provisions of the Consumer Protection Act on the last day (not business day) of the month to terminate their lease prior to the end of the previous month, in which case we will need to apportion rent due and not necessarily pay the entire amount due over to the Landlord.
The CPA does permit for the Landlord to be able to charge a 'reasonable cancellation penalty, but this can only be applied and charged under very specific conditions and cannot simply be billed as rent. It also depends on whether the Landlord uses his/her/their best endeavours to re-tenant the property timeously and/or manages to re-tenant the property.
As responsible and professional residential rental property managers we, therefore, need to err on the side of caution before paying rent payments over to the Landlord to ensure that the Lanldord does not (unwittingly or otherwise) do anything that would prejudice their rights under the CPA, or the Rental Housing Act.
There are, however, also some practical banking issues that need to be taken into account . . .
We pay all funds over to our Landlords on the day that we receive it in our account (as long as that date is the 1st of the month, or later) - taking into account the fact that if money is received in our account, for example, today, we will only see those funds received tomorrow - or the next business day.The reality, therefore, is that funds received in our rentals trust account only show on the business day after receipt - this is a banking issue that we have no control over.
So, should your tenant/s pay their rent on time and the rent is received in our account on the 1st of the month, we only see receipt of those funds on the following business day, and we will disburse the funds on the same day.
Depending on your bankers, you will either receive the rent the same (business) day (if you bank with Standard Bank), or the following business day (if you bank with any other bank).
If the 1st of the month falls on a weekend, the banking delays can seriously affect the timing of our Landlords receiving their payments. Inter-bank transfers due on the weekend will usually only be processed on the next business day (Monday) and often only be received in our account on the Tuesday of the next week - taking into account that receipts on a particular business day only show in our bank account on the following business day, the earliest that we could acknowledge and reconcile receipt of these payments is on the Wednesday of the following week. Accepting that we process and disburse the funds on the same day, and assuming that the Landlord is with another bank to us, the payment will only show up in the Landlords account on the Thursday.
If, in the worst case scenario, the 1st of the month is on a Saturday, and assuming that all payments are made and received on time, the Landlord, due to banking processes and other matters totally beyond our control, will only receive their payments on the 6th of the month.
Of course, if there are any payment delays, the situation will be even worse.
We, therefore, advise all Landlords to arrange their bonds payments for around the 10th of the month so as not to fall in arrears and be charged any unnecessary payments for late payment