damar
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Post by damar on Sept 2, 2016 11:46:43 GMT
Hi,
dividends were paid late last month, because of a software issue, two of mine however have still not shown up because the payment to them was late.
They state that they hold one months rent in hand, so that they can always pay on time, I have contacted them to ask if they could explain, the contradiction, but i have had no answer. This is what they say
We process rental accounts on more than 40 properties, and the rent for these comes in near the end of the month. In order to responsibly manage the entities, around 90 minutes is spent on each, so we cannot consistently pay out rent on the last working day of the month because there isn't enough time in the day!
We also want to ensure consistency across monthly returns and by holding one month's rent on account, if for any reason rent is received late on a property in the future, we will have these funds there ready to pay out.
And now the rent is late they say this.
Rent from the management agent is yet to arrive. We are currently liaising to ensure rent is collected efficiently for payment. The rent will be distributed as soon as we are in receipt.
Have any of you guys had the same experience, or any comments.
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hazellend
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Post by hazellend on Sept 2, 2016 12:57:48 GMT
There should be an explanation in your dashboard if you click on the property. A lot of the tenants are quite chaotic so getting rent on time each month is not feasible.
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damar
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Post by damar on Sept 2, 2016 13:02:35 GMT
But this is my point, they say that they pay a month in areas so they can pay on time, and then they say they haven't received it, so they can't pay.
Its a contradiction.
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adrianc
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Post by adrianc on Sept 2, 2016 14:50:53 GMT
And now the rent is late they say this. Rent from the management agent is yet to arrive. We are currently liaising to ensure rent is collected efficiently for payment. The rent will be distributed as soon as we are in receipt.There's your answer, then. The agent who manage the property haven't paid PM yet, so PM can't pay you yet. When the agent pay PM, PM will pay you. (Is this PM45, btw?)
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damar
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Post by damar on Sept 2, 2016 14:53:45 GMT
yes its one of them, and I understand that the rent is late, my point is, that they state :
We process rental accounts on more than 40 properties, and the rent for these comes in near the end of the month. In order to responsibly manage the entities, around 90 minutes is spent on each, so we cannot consistently pay out rent on the last working day of the month because there isn't enough time in the day!
We also want to ensure consistency across monthly returns and by holding one month's rent on account, if for any reason rent is received late on a property in the future, we will have these funds there ready to pay out.
and then they don't.
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ama7
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Post by ama7 on Sept 2, 2016 19:43:00 GMT
been using pm for a few months now, have had 2 late payments this month. pm45 and pm50. slightly nervous, do these late payments normally get sorted?
thanks
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damar
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Post by damar on Sept 9, 2016 7:04:21 GMT
Hi all,
I have been given some more information on this, this was my answer as to why we are paid a month in arrears:
To answer your query on some of the late payments, I agree, this is unacceptable. We did indeed, put rent day back to one month in arrears to avoid this situation occurring but unfortunately, one management agent has let us down last month due to his reason of 'Summer holidays' and basically the other staff not having enough knowledge to help us with problems and rent in his absence. Although this is frustrating, the good news is that the tenant's are paying rent so it isn't a none payment but a late payment - nonetheless, the lack of consistency is frustrating.
We have finally been able to pin down the agent on the problems this week and he has shown remorse and attention to the properties so we will review the agent over the next month to see how it goes, and hopefully it will be successful, but if not, will of course review and change the arrangements.
He is due to send all overdue rents early next week so I will confirm with you then whether that rent will be paid out next week or rolled over to the September rent day. Once again, apologies for any inconvenience caused as I appreciated it doesn't help our investors gain confidence but we are hopeful that this will be an extremely rare and non-repeat event.
I have chased this up again, and asked about the possibility of changing agent, I rent property personally and i have never had an agent withheld rent due to a holiday.
I have also asked if the name of the gent be known, and the intended letting agent be shown on any new property, as I am sure some of us will not want to invest on a a property that is going to managed by an agent that has a history of unprofessional behaviour.
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dc
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Post by dc on Sept 9, 2016 7:43:25 GMT
Thanks for chasing this up and the update.
It does sound a little odd to me as well. If they have got hold of the agent, why is the money not being sent until next week? A transfer can be instant.
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adrianc
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Post by adrianc on Sept 9, 2016 7:51:26 GMT
If they have got hold of the agent, why is the money not being sent until next week? A transfer can be instant. Yes, it can be. Once it's sent.
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dc
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Post by dc on Sept 9, 2016 14:13:38 GMT
I suppose this is the where Property Partner works a little better, in that they guarantee to pay the rent(at least for now). It is a shame that Property Moose could not do this on these rare occasions? I am sure that it would raise investor confidence.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Sept 10, 2016 8:39:07 GMT
This platform is rather different to the others I invest in. IMO the success of PM depends mostly on their performance as landlords, managing tenants, agents, void periods, non payment of rent, delapidations etc. From my rather limited experience of BTL the role and usefulness of agents is limited and the owner needs a hands on approach even when using an agent.
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ama7
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Post by ama7 on Sept 12, 2016 22:05:26 GMT
that answer sounds totally unacceptable. how can PM even entertain the possibility of rent being carried over to september? The agent will be taking a healthy percentage as part of their commission. if they are not delivering the rent this commission should be witheld at a minimum?
PM - would be grateful for a response on this. i really enjoy investing with PM, but as with any company it is how it responds to difficulty that either instils investors' trust or ruins it.
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damar
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Post by damar on Sept 13, 2016 9:20:08 GMT
I agree that this is unacceptable, and have told them so, I have been chasing for an update, but none as yet, I have tried email and website chat.
I am also keen that we know the name of the agent, and the intended agent name is shown on any future properties, so the we can make an informed decision.
I will post updates when I get any.
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Post by propertymoose on Sept 13, 2016 14:33:53 GMT
Hi all
I am very sorry that people feel that we have not dealt with the situation in the correct way. Hopefully, this reply will go some way in explaining the issues and what we have been doing to try and solve them for you.
In August, we were unable to pay out rent due to it not being received on SPVs 42, 44 and 45 for July and August. This was as a result of a combination of annual leave within the agency (i.e. the individual dealing with these properties) and the owner of the agency (and our contact) dealing with an ongoing terminal bereavement of a close family member. Of course, this is no excuse and we have explained this to the agent. The rent held in arrears was used in July to pay investors leaving no rent on account in August which has resulted in the delay. We have been assured that rent has been paid and received by the agent, it is just a case of it not being sent to us. Again, we realise that this is unacceptable and have communicated this numerous times.
The combination of issues facing the agent in this case is something we have not dealt with before and, as a business, we have spent significant time and resource working with the agent to ensure the rent is paid as soon as possible. The agent in question performs well (on the rental side) and the rental values paid are typically higher than are achievable on the open market due to the pool of tenants they have available to them. As such, we feel that keeping the relationship strong is beneficial to the investors in those SPVs, especially considering the relevant situation faced.
To ensure that there are no further delays to investors receiving their rent, we have now paid each investor in SPVs 42, 44 and 45 the net sum received last month as a loan pending receipt from the agent. This will then be netted off against each other. I apologise again for the short delay in getting this to you but please rest assured that we have been working very hard to get this to you as soon as possible.
In terms of SPV 50, this property was acquired with a tenant in situ. This was reflected in the discounted price paid for the property. Unfortunately, the tenant did not pay the first month's rent, despite us visiting the property and building a relationship with the tenant before acquisition. Following extensive correspondence, we served notice on the tenant to leave. Thankfully, the tenant has agreed to leave the property next week and as soon as it is vacant we will conduct an assessment and re-let the property as quickly as possible. This issue is something that is always a risk with BTL property but, as flagged previously, it is how we deal with the issues that will build trust. As soon as it was apparent that the rent was not being paid, we communicated with the tenant and served the relevant notices. This quick response will, hopefully, mean the property will be vacated and re-let efficiently. As a gesture of goodwill, Property Moose will pay investors in SPV 50 3% p.a. on their investment for August and September whilst we deal with the vacation and tenancy.
We now have well over 50 properties and, as expected, do have some issues with a small proportion them. This is the life of a landlord and, thankfully, the management and hassle sits with us as a platform and not with our investors. I am hopeful that we will have some very exciting news on the management front to announce very soon which will be the next stage on the Property Moose journey and should help to reduce investors risk even further.
I hope that helps but please feel free to get in touch direct if anyone has any questions.
Kind regards
Andrew
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Steerpike
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Post by Steerpike on Sept 13, 2016 15:14:46 GMT
I suppose that this episode underlines the danger of agent default, unless there is insurance this is effectively unsecured debt.
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