The Timing of Owners Payments
When it comes to tenant rent and owner payments (sometimes called “draws”), we prioritize accuracy, compliance, and transparency in how funds are handled. Our goal is for you to recieve your owners draw by the 15th of the month but on occasion it could be later than this when weekends and holidays are involved. See below for more details regarding the process and timing. Below is an overview of the typical monthly rent and owner draw timeline so you know exactly when to expect your payment.
Was your home rented last month or the lease start date last month? Suggested reading: Understanding Your First Three Months of Owner Payments
The Owner Draw Process
1st – Rent Due
Tenant rent payments are due by the end of the first day of the month from a record keeping perspective. Most tenants due pay on or before the 1st. As tenants pay, funds are processed based on how the rent is paid. Tenants are encouraged to pay rent via ACH as it is the least costly, most secure and reliabile. Tenants are able to pay via credit card or via other means such as money order or cash using our payment network at places like Walmart.
4th – End of Grace Period
A grace period is a industry standard but is often until the end of the 5th of day. Our grace is until the end of the 3rd day to ensure timely processing of rent payments to our owners. If rent is not received by 12:01am on the 4th day, late fees will charged to the tenant(s). If the rent payment is paid after the 3rd, then payments to owners will likely be delayed.
10th – Processing of Rent Payments and Owner Payment Submissions & Clearing
By this time, all rent payments should have cleared through the ACH process and we process the rent, owner expenses, managment costs, and then submit the balance to owners via ACH.
15th – *Owner Payments Deposited
In most months, we expect that owners funds (draws) will be deposted by the 15th.
*It may be before or after this date by a day or two but we usually use the 15th as the most common scenario.
IMPORTANT NOTE! The first time the ACH process is run, it will take 5 to 7 banking days! This is due to how the clearing process works.
Learn more here: Understanding Your First Three Months of Owner Payments
About ACH Transfers
- ACH (Automated Clearing House) payments are the most secure and cost-effective way to transfer funds electronically between banks.
- ACH transactions are processed in batches by the Federal Reserve, which means they do not post in real time like wire transfers.
- ACH creates a clear, traceable digital record that simplifies bookkeeping, reconciliation, and audit trails.
- While some banks credit funds the same day, others may take several banking days to release deposits.
- This process ensures compliance with trust accounting laws, protects against fraud, and keeps your rental income safe.
- ACH is processed only on banking days since transactions are handled by the Federal Reserve, which only processes payments on banking days (Monday–Friday) and excluding federal holidays.
- First ACH between RPM Blue Sky bank and your bank. Usually, the first payment takes between 5 and 7 banking days to clear. Future payment will usually clear in 2 to 3 banking days.
FAQ
If rent is paid on the 1st, why can’t we get our draw within a few days?
Here’s what happens step-by-step:
- Tenant payment initiated – Rent is paid through the portal on the 1st but they have a grace until the end of the 3rd day.
- Rent payment ACH verification and clearing – The bank must confirm that the tenant’s account has sufficient funds and that the payment isn’t reversed (for example, due to NSF). This process usually takes 2–3 banking days.
- Funds posted to trust account – Once cleared, funds are legally available for processing of expenses and owner disbursements. This is done between the 8th and the 10th.
- Owner draw processed – Most draws are submitted between the 8th and 10th of the month.
- Owner draw payment ACH verification and clearing – This process usually takes 2-3 banking days.
- Days when banks are open and processing transactions.
- Typically Monday through Friday, excluding federal holidays.
- ACH transfers, wire transfers, and check deposits are only processed on these days.
- Weekends and bank holidays don’t count toward ACH timelines.
Will owner payments ever be received before the 15th?
Yes, but it depends on the calendar and banks that we don’t control. If the 10th is on a Monday, and we process payments in the morning, it is likely that you will receive the deposit on the 12th or 13th. If the 10th is on a Friday and in the afternoon, it is likely it will be on the 15th or maybe even the 16th especially if Monday is a holiday.
Do Holidays impact the timing of payments?
Yes, if there is a holiday between the date of payment submission (normally between the 8th and 10th), then yes, the payment will be delayed.
Do you ever process before the 10th?
Yes, we process as early as the 8th. We don’t process before the 8th as that is usually the earliest date that all rents have cleared.
Why can’t you process rent as soon as it clears for each owner?
Owner payments are a manual process that is done in batches for efficiency. Monitoring rent clearing, processing and submitting payments individually would be too labor intensive and prone to errors.
Wouldn’t a printed check be faster?
The processing time, labor, mailing, depositing and then waiting for it to clear would likely take more time. Additionally, there is the risk of the check being lost in the mail or buried in a pile of junk mail.
It’s the 16th, and I haven’t received the payment
If a holiday did not occur between the 8th and the 15th, please reach out via email to [email protected] or send a text to 813-625-9595 and we will take a look. If there was a holiday, please wait another day.
Why can’t you make it go faster?
We sure would love to and honestly it is hard to believe that in this modern world, that ACH takes as long as it does.
