The Census Bureau reports that over 21 million renters spent over 30% of their income on rent in 2023. Rent prices in Colorado, particularly in Parker, are rising as more people move there to experience its historic downtown.
If you manage a property in the municipality, you must have effective owner disbursements to maximize property management income.
Let's explore some practical landlord payment tips to apply.
1. Use Digital Solutions to Automate Disbursement
Keeping track of landlord payments can be tricky when managing many properties. The process is also time-consuming, and you may make errors that cause conflict or reduce your client's confidence.
Platforms for automating rental income distribution will track expenses and reduce them from the gross income. They will deduct your fees and send the balances to the landlords. Automating transfers reduces manual work and error while ensuring you send landlords their payments on time.
2. Leverage Accounting Software
Investing in accounting software improves your financial property management practices. You'll be able to track income and expenses accurately and then produce detailed reports for landlords.
An accounting solution improves transparency in the owner disbursement process. It lets you identify areas where you can cut costs to boost rental income. Using such tools also gives you detailed insights into the performance of every property you manage.
When looking for accounting solutions to help you with rental income distribution, consider features such as:
- Property maintenance categorization
- Real-time reporting
- Integration with payment tools
Choosing accounting software that connects with your payment tools will simplify your work. It allows you to focus on managing the property instead of spending much time on paperwork.
3. Diversify Owner Disbursements
Paying all the landlords at once may be tempting if you manage several properties. But what happens when you have significant costs in the middle of the month and rents aren't due yet?
Diversifying your payment schedules gives you enough cash flow to address issues. Pay some landlords at the start of the month and others in the middle or at the end. Doing so will create balance and help you handle costs throughout the month.
A flexible schedule also enables you to handle the following issues:
- High cash flow during the rental peak season
- High upkeep costs due to changing weather conditions
- Pressure from landlords when property taxes are due
If you notice you have a hard time meeting expenses using the current real estate disbursements, it's time for a change. Review your monthly costs and pay special attention to the time of the year with low vacancy rates.
Adjust your payment timelines based on seasonal trends to match your cash flow with your company's needs. Such an approach will help you meet obligations and improve financial stability.
Simplify Property Management With PMI Parker
Managing owner disbursements will be easier if you invest in automation and accounting tools. A flexible landlord payment schedule will also allow you to manage costs and keep landlords satisfied.
At PMI Parker, we offer resources to help property managers maximize rental income. With our helpful tips, they can provide effective services and grant you peace of mind. Contact us for more property income strategies.
